Untitled Document

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:
811-10501
 

 

BlackRock Municipal 2018 Term Trust

(Exact name of registrant as specified in charter)

 

 

100 Bellevue Parkway, Wilmington, DE
 
19809

(Address of principal executive offices)
 
(Zip code)

 

Robert S. Kapito, President
BlackRock Municipal 2018 Term Trust
40 East 52nd Street, New York, NY 10022

(Name and address of agent for service)

 

Registrant's telephone number, including area code:
888 825-2257
 

 

Date of fiscal year end:
December 31, 2004
 

 

Date of reporting period:
June 30, 2004
 

 



Item 1. Reports to Shareholders.
The Trust's semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under
the Investment Company Act of 1940 is as follows:

FIXED INCOME                LIQUIDITY                EQUITIES                ALTERNATIVES                BLACKROCK SOLUTIONS

BlackRock
Closed-End Funds
Semi-Annual Report

JUNE 30, 2004 (UNAUDITED)


 

BlackRock Insured Municipal 2008 Term Trust (BRM)

BlackRock Insured Municipal Term Trust (BMT)

BlackRock Municipal 2018 Term Trust (BPK)

BlackRock Municipal 2020 Term Trust (BKK)

BlackRock Municipal Target Term Trust (BMN)

BlackRock Strategic Municipal Trust (BSD)

BlackRock California Insured Municipal 2008 Term Trust (BFC)

BlackRock California Municipal 2018 Term Trust (BJZ)

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

BlackRock Florida Municipal 2020 Term Trust (BFO)

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

BlackRock New York Municipal 2018 Term Trust (BLH)

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

 

 

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


TABLE OF CONTENTS

Letter to Shareholders 1  
     
Trusts’ Summaries 2  
     
Portfolios of Investments 15  
     
Financial Statements    
     
   Statements of Assets and Liabilities 56  
     
   Statements of Operations 58  
     
   Statements of Changes in Net Assets 60  
     
Financial Highlights 65  
     
Notes to Financial Statements 78  
     
Dividend Reinvestment Plans 84  
     
Additional Information 85  

 


Privacy Principles of the Trusts

     The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties.

     Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator).

     The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of their shareholders.


 


LETTER TO SHAREHOLDERS

June 30, 2004

Dear Shareholder:

     We are pleased to report that during the semi-annual period, the Trusts provided monthly income, as well as the opportunity to invest in various portfolios of municipal securities. This report contains the Trusts’ unaudited financial statements and a listing of the portfolios’ holdings.

     The portfolio management team continuously monitors the municipal bond market and adjusts the portfolios in order to gain exposure to various issuers, revenue sources and security types. This strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions.

     The following table shows the Trusts’ current yields, tax-equivalent yields, closing market prices per share and net asset values (“NAV”) per share as of June 30, 2004.












      Tax- Closing    
  Current Equivalent Market    
   Trust (Ticker) Yield1 Yield1 Price NAV









BlackRock Insured Municipal 2008 Term Trust (BRM) 4.92 % 7.57 % $ 16.15   $ 16.68  











BlackRock Insured Municipal Term Trust (BMT) 5.33   8.20     10.79     10.87  











BlackRock Municipal 2018 Term Trust (BPK) 5.52   8.50     14.12     15.07  











BlackRock Municipal 2020 Term Trust (BKK) 6.75   10.39     13.88     13.74  











BlackRock Municipal Target Term Trust (BMN) 4.51   6.93     10.65     10.60  











BlackRock Strategic Municipal Trust (BSD) 7.15   11.01     13.35     14.90  











BlackRock California Insured Municipal 2008 Term Trust (BFC) 4.87   7.49     15.86     16.47  











BlackRock California Municipal 2018 Term Trust (BJZ) 5.57   8.57     13.20     14.36  











BlackRock Florida Insured Municipal 2008 Term Trust (BRF) 4.88   7.51     15.36     15.67  











BlackRock Florida Municipal 2020 Term Trust (BFO) 6.47   9.96     13.90     13.78  











BlackRock New York Insured Municipal 2008 Term Trust (BLN) 4.76   7.32     15.76     16.43  











BlackRock New York Municipal 2018 Term Trust (BLH) 5.20   8.00     14.14     14.97  











BlackRock Pennsylvania Strategic Municipal Trust (BPS) 6.37   9.80     13.93     15.53  











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, 2004, BlackRock managed over $19 billion in municipal bonds, including seven open-end and 37 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,


Laurence D. Fink
Chief Executive Officer
BlackRock Advisors, Inc.


Ralph L. Schlosstein
President
BlackRock Advisors, Inc.

 

 

 

1


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Insured Municipal 2008 Term Trust (BRM)

Trust Information



Symbol on New York Stock Exchange:
BRM



Initial Offering Date: September 18, 1992



Termination Date (on or about): December 31, 2008



Closing Market Price as of 6/30/04: $16.15  



Net Asset Value as of 6/30/04: $16.68  



Yield on Closing Market Price as of 6/30/04 ($16.15):1 4.92 %



Current Monthly Distribution per Common Share:2 $0.06625  



Current Annualized Distribution per Common Share:2 $0.79500  



Leverage as of 6/30/04:3 37 %



1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$16.15
$17.27 (6.49 )% $17.76 $15.87







NAV
$16.68
$17.38 (4.03 )% $17.75 $16.46







The following chart shows the asset composition of the Trust’s long-term investments:

Sector Breakdown

Sector
June 30, 2004 December 31, 2003





City, County & State 29 % 29 %





Power 22   21  





Education 10   14  





Tax Revenue 9   9  





Industrial & Pollution Control 8   6  





Transportation 8   7  





Lease Revenue 6   5  





Hospital 4   4  





Water & Sewer 4   4  





Housing   1  





As of June 30, 2004, all long-term investments had ratings of AAA/Aaa by Standard & Poor’s (“S&P”), Moody’s Investors Service (“Moody’s”) or Fitch Ratings (“Fitch”).

2


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Insured Municipal Term Trust (BMT)

Trust Information



Symbol on New York Stock Exchange: BMT



Initial Offering Date: February 20, 1992



Termination Date (on or about): December 31, 2010



Closing Market Price as of 6/30/04: $10.79  



Net Asset Value as of 6/30/04: $10.87  



Yield on Closing Market Price as of 6/30/04 ($10.79):1 5.33 %



Current Monthly Distribution per Common Share:2 $0.047917  



Current Annualized Distribution per Common Share:2 $0.575004  



Leverage as of 6/30/04:3 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 (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$10.79
$11.06
(2.44 )% $11.74 $10.47







NAV
$10.87
$11.40
(4.65 )% $11.72 $10.62







The following chart shows the asset composition of the Trust’s long-term investments:

Sector Breakdown






Sector
June 30, 2004 December 31, 2003





City, County & State 32 % 35 %





Education 15   15  





Water & Sewer 15   14  





Power 14   12  





Hospital 10   10  





Lease Revenue 6   6  





Transportation 6   6  





Tax Revenue 2   2  





As of June 30, 2004, 99.5% of all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch and the remaining 0.5% was rated A+.

3


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Municipal 2018 Term Trust (BPK)

Trust Information



Symbol on New York Stock Exchange: BPK



Initial Offering Date: October 30, 2001



Termination Date (on or about): December 31, 2018



Closing Market Price as of 6/30/04: $14.12  



Net Asset Value as of 6/30/04: $15.07  



Yield on Closing Market Price as of 6/30/04 ($14.12):1 5.52 %



Current Monthly Distribution per Common Share:2 $0.065  



Current Annualized Distribution per Common Share:2 $0.780  



Leverage as of 6/30/04:3 36 %



1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 





  6/30/04 12/31/03 Change High Low







Market Price
$14.12
$14.36
(1.67 )% $15.09 $13.59







NAV
$15.07
$15.53
(2.96 )% $16.05 $14.96







The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown




Sector
June 30, 2004 December 31, 2003





Industrial & Pollution Control 21 % 23 %





Hospital 21   21  





City, County & State 17   12  





Tobacco 11   12  





Housing 9   10  





Power 5   6  





Transportation 4   4  





Education 4   4  





Lease Revenue 3   3  





Tax Revenue 1   1  





Other 4   4  





Credit Breakdown4




Credit Rating
June 30, 2004 December 31, 2003





AAA/Aaa 14 % 15 %





AA/Aa 4   5  





A 23   22  





BBB/Baa 39   40  





BB/Ba 4   2  





B 3   4  





Not Rated5 13   12  





 


4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2004, and December 31, 2003, the market value of these securities was $14,355,925 representing 3.8% and $18,920,780 representing 5.0%, respectively, of the Trust’s long-term investments.

4


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Municipal 2020 Term Trust (BKK)

Trust Information



Symbol on New York Stock Exchange: BKK



Initial Offering Date: September 30, 2003



Termination Date (on or about): December 31, 2020



Closing Market Price as of 6/30/04: $13.88  



Net Asset Value as of 6/30/04: $13.74  



Yield on Closing Market Price as of 6/30/04 ($13.88):1 6.75 %



Current Monthly Distribution per Common Share:2 $0.078125  



Current Annualized Distribution per Common Share:2 $0.937500  



Leverage as of 6/30/04:3 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 (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 





  6/30/04 12/31/03 Change High Low







Market Price
$13.88
$15.00
(7.47 )% $15.48 $13.40







NAV
$13.74
$14.51
(5.31 )% $15.04 $13.53







The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown




Sector
June 30, 2004 December 31, 2003





City, County & State 31 % 26 %





Hospitals 16   15  





Industrial & Pollution Control 14   13  





Lease Revenue 10   14  





Tobacco 9   9  





Education 7   6  





Power 5   6  





Housing 4   2  





Transportation 2   3  





Tax Revenue 2   6  





Credit Breakdown4




Credit Rating
June 30, 2004 December 31, 2003





AAA/Aaa 13 % 22 %





AA/Aa 6   11  





A 23   18  





BBB/Baa 36   34  





BB/Ba 2   1  





B 3   5  





CCC 1    





Not Rated5 16   9  





 


4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2004, the market value of these securities was $8,153,706 representing 1.8% of the Trust’s long-term investments.

5


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Municipal Target Term Trust (BMN)

Trust Information



Symbol on the New York Stock Exchange: BMN



Initial Offering Date: September 27, 1991



Termination Date (on or about): December 31, 2006



Closing Market Price as of 6/30/04: $10.65  



Net Asset Value as of 6/30/04: $10.60  



Yield on Closing Market Price as of 6/30/04 ($10.65):1 4.51 %



Current Monthly Distribution per Common Share:2 $0.04  



Current Annualized Distribution per Common Share:2 $0.48  



Leverage as of 6/30/04:3 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 (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$10.65
$10.95
(2.74 )% $11.55 $10.40







NAV
$10.60
$10.97
(3.37 )% $11.11 $10.55







The following chart shows the asset composition of the Trust’s long-term investments:

Sector Breakdown




Sector
June 30, 2004 December 31, 2003





City, County & State 38 % 39 %





Power 14   13  





Transportation 11   11  





Education 10   10  





Lease Revenue 8   7  





Water & Sewer 8   7  





Housing 4   5  





Tax Revenue 3   3  





Hospital 3   4  





Industrial & Pollution Control 1   1  





As of June 30, 2004, all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch.

6


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Strategic Municipal Trust (BSD)

Trust Information



Symbol on New York Stock Exchange: BSD



Initial Offering Date: August 25, 1999



Closing Market Price as of 6/30/04: $13.35  



Net Asset Value as of 6/30/04: $14.90  



Yield on Closing Market Price as of 6/30/04 ($13.35):1 7.15 %



Current Monthly Distribution per Common Share:2 $0.079585  



Current Annualized Distribution per Common Share:2 $0.955020  



Leverage as of 6/30/04:3 36 %



1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$13.35
$14.69
(9.12 )% $15.60 $13.03







NAV
$14.90
$15.91
(6.35 )% $16.39 $14.76







The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown




Sector
June 30, 2004 December 31, 2003





Hospital 20 % 19 %





Industrial & Pollution Control 15   16  





City, County & State 11   11  





Tax Revenue 9   9  





Education 9   9  





Power 9   8  





Transportation 8   8  





Housing 5   5  





Water & Sewer 4   4  





Lease Revenue 3   4  





Tobacco 3   3  





Other 4   4  





Credit Breakdown4




Credit Rating
June 30, 2004 December 31, 2003





AAA/Aaa 44 % 43 %





AA/Aa 10   10  





A 6   12  





BBB/Baa 20   15  





BB/Ba 8   7  





B 5   7  





CCC 2    





Not Rated5 5   6  





 


4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2004, and December 31, 2003, the market value of these securities was $4,349,200 representing 2.6% and $6,508,720 representing 3.7%, respectively, of the Trust’s long-term investments.

7


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock California Insured Municipal 2008 Term Trust (BFC)

Trust Information



Symbol on New York Stock Exchange: BFC



Initial Offering Date: September 18, 1992



Termination Date (on or about): December 31, 2008



Closing Market Price as of 6/30/04: $15.86  



Net Asset Value as of 6/30/04: $16.47  



Yield on Closing Market Price as of 6/30/04 ($15.86):1 4.87 %



Current Monthly Distribution per Common Share:2 $0.064375  



Current Annualized Distribution per Common Share:2 $0.772500  



Leverage as of 6/30/04:3 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 (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$15.86
$17.09
(7.20 )% $17.35 $15.60







NAV
$16.47
$17.19
(4.19 )% $17.65 $16.08







The following chart shows the asset composition of the Trust’s long-term investments:

Sector Breakdown

Sector
June 30, 2004 December 31, 2003





City, County & State 23 % 22 %





Lease Revenue 19   19  





Power 18   18  





Education 12   11  





Water & Sewer 10   10  





Tax Revenue 8   8  





Resource Recovery 5   5  





Transportation 4   4  





Hospital 1   3  





As of June 30, 2004, all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch.

8


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock California Municipal 2018 Term Trust (BJZ)

Trust Information



Symbol on New York Stock Exchange: BJZ



Initial Offering Date: October 30, 2001



Termination Date (on or about): December 31, 2018



Closing Market Price as of 6/30/04: $13.20  



Net Asset Value as of 6/30/04: $14.36  



Yield on Closing Market Price as of 6/30/04 ($13.20):1 5.57 %



Current Monthly Distribution per Common Share:2 $0.06125  



Current Annualized Distribution per Common Share:2 $0.73500  



Leverage as of 6/30/04:3 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 (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$13.20
$13.42
(1.64 )% $14.53 $12.88







NAV
$14.36
$14.77
(2.78 )% $15.25 $14.04







The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown




Sector
June 30, 2004 December 31, 2003





Transportation 18 % 19 %





City, County & State 18   18  





Lease Revenue 15   15  





Hospital 10   10  





Tobacco 10   11  





Housing 7   7  





Education 5   5  





Power 5   5  





Industrial & Pollution Control 3   2  





Water & Sewer 2   1  





Other 7   7  





Credit Breakdown4




Credit Rating
June 30, 2004 December 31, 2003





AAA/Aaa 33 % 33 %





AA/Aa 4   4  





A 32   25  





BBB/Baa 24   28  





Not Rated5 7   10  





 


4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2004, and December 31, 2003, the market value of these securities was $8,387,206 representing 6.1% and $12,685,095 representing 9.0%, respectively, of the Trust’s long-term investments.

9


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

Trust Information



Symbol on New York Stock Exchange: BRF



Initial Offering Date: September 18, 1992



Termination Date (on or about): December 31, 2008



Closing Market Price as of 6/30/04: $15.36  



Net Asset Value as of 6/30/04: $15.67  



Yield on Closing Market Price as of 6/30/04 ($15.36):1 4.88 %



Current Monthly Distribution per Common Share:2 $0.0625  



Current Annualized Distribution per Common Share:2 $0.7500  



Leverage as of 6/30/04:3 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 (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$15.36
$16.19
(5.13 )% $16.74 $15.06







NAV
$15.67
$16.43
(4.63 )% $16.81 $15.44







The following chart shows the asset composition of the Trust’s long-term investments:

Sector Breakdown




Sector
June 30, 2004 December 31, 2003





Tax Revenue 34 % 33 %





Power 14   14  





Education 14   16  





Lease Revenue 11   11  





City, County & State 10   10  





Water & Sewer 7   7  





Transportation 5   6  





Resource Recovery 4   3  





Other 1    





As of June 30, 2004, all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch.

10


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Florida Municipal 2020 Term Trust (BFO)

Trust Information



Symbol on New York Stock Exchange: BFO



Initial Offering Date: September 30, 2003



Termination Date (on or about): December 31, 2020



Closing Market Price as of 6/30/04: $13.90  



Net Asset Value as of 6/30/04: $13.78  



Yield on Closing Market Price as of 6/30/04 ($13.90):1 6.47 %



Current Monthly Distribution per Common Share:2 $0.075  



Current Annualized Distribution per Common Share:2 $0.900  



Leverage as of 6/30/04:3 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 (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$13.90
$15.39
(9.68 )% $15.53 $13.00







NAV
$13.78
$14.50
(4.97 )% $15.08 $13.58







The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown






Sector
June 30, 2004 December 31, 2003





City, County & State 29 % 31 %





Water & Sewer 17   21  





Hospitals 10   10  





Education 9    





Power 9   11  





Tobacco 8   11  





Lease Revenue 5   1  





Industrial & Pollution Control 5   6  





Tax Revenue 5   6  





Transportation 3   3  





Credit Breakdown4




Credit Rating
June 30, 2004 December 31, 2003





AAA/Aaa 56 % 50 %





AA/Aa 1   1  





A 4   5  





BBB/Baa 17   17  





BB/Ba 2    





Not Rated5 20   27  





 


4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2004, and December 31, 2003, the market value of these securities was $2,067,000 representing 1.7% and $2,097,600 representing 2.0%, respectively, of the Trust’s long-term investments.

11


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

Trust Information



Symbol on New York Stock Exchange: BLN



Initial Offering Date: September 18, 1992



Termination Date (on or about): December 31, 2008



Closing Market Price as of 6/30/04: $15.76  



Net Asset Value as of 6/30/04: $16.43  



Yield on Closing Market Price as of 6/30/04 ($15.76):1 4.76 %



Current Monthly Distribution per Common Share:2 $0.0625  



Current Annualized Distribution per Common Share:2 $0.7500  



Leverage as of 6/30/04:3 37 %



1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$15.76
$16.96
(7.08 )% $17.35 $15.51







NAV
$16.43
$17.13
(4.09 )% $17.52 $16.19







The following chart shows the asset composition of the Trust’s long-term investments:

Sector Breakdown




Sector
June 30, 2004 December 31, 2003





Transportation 24 % 27 %





Education 20   19  





City, County & State 17   16  





Water & Sewer 12   11  





Hospital 9   10  





Tax Revenue 7   6  





Power 5   5  





Housing 3   3  





Lease Revenue 3   3  





As of June 30, 2004, all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch.

12


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock New York Municipal 2018 Term Trust (BLH)

Trust Information



Symbol on New York Stock Exchange: BLH



Initial Offering Date: October 30, 2001



Termination Date (on or about): December 31, 2018



Closing Market Price as of 6/30/04: $14.14  



Net Asset Value as of 6/30/04: $14.97  



Yield on Closing Market Price as of 6/30/04 ($14.14):1 5.20 %



Current Monthly Distribution per Common Share:2 $0.06125  



Current Annualized Distribution per Common Share:2 $0.73500  



Leverage as of 6/30/04:3 37 %



1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$14.14
$14.70
(3.81 )% $15.17 $13.78







NAV
$14.97
$15.53
(3.61 )% $16.15 $14.74







The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown




Sector
June 30, 2004 December 31, 2003





Education 22 % 22 %





Hospital 17   17  





City, County & State 12   11  





Lease Revenue 11   7  





Transportation 11   11  





Tobacco 9   10  





Tax Revenue 6   6  





Industrial & Pollution Control 6   6  





Power 1   1  





Housing   4  





Other 5   5  





Credit Breakdown4




Credit Rating
June 30, 2004 December 31, 2003





AAA/Aaa 23 % 23 %





AA/Aa 37   37  





A 22   19  





BBB/Baa 15   13  





CCC/Caa 3   3  





Not Rated5   5  





 


4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed all of the non-rated securities at December 31, 2003, to be of investment grade quality.

13


TRUST SUMMARIES (unaudited)
JUNE 30, 2004

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

Trust Information



Symbol on American Stock Exchange: BPS



Initial Offering Date: August 25, 1999



Closing Market Price as of 6/30/04: $13.93  



Net Asset Value as of 6/30/04: $15.53  



Yield on Closing Market Price as of 6/30/04 ($13.93):1 6.37 %



Current Monthly Distribution per Common Share:2 $0.073965  



Current Annualized Distribution per Common Share:2 $0.887580  



Leverage as of 6/30/04:3 36 %



1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

2 The distribution is not constant and is subject to change.

3 As a percentage of managed assets (as defined in the Notes to Financial Statements).

The table below summarizes the changes in the Trust’s market price and NAV:

 




  6/30/04 12/31/03 Change High Low







Market Price
$13.93
$15.12
(7.87 )% $15.85 $13.41







NAV
$15.53
$16.09
(3.48 )% $16.42 $15.30







The following charts show the asset composition and credit quality allocations of the Trust’s long-term investments:

Sector Breakdown

Sector
June 30, 2004 December 31, 2003





Education 21 % 21 %





Hospital 20   20  





Transportation 17   17  





Housing 10   12  





Water & Sewer 7   7  





Lease Revenue 5   5  





Industrial & Pollution Control 5   4  





City, County & State 5   5  





Other 10   9  





Credit Breakdown4




Credit Rating
June 30, 2004 December 31, 2003





AAA/Aaa 53 % 52 %





AA/Aa 14   14  





A 7   7  





BBB/Baa 11   10  





BB/Ba   5  





B 5    





Not Rated5 10   12  





 


4 Using the higher of S&P’s, Moody’s or Fitch’s rating.

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2004, and December 31, 2003, the market value of these securities was $4,349,200 representing 10.1% and $4,322,000 representing 9.5%, respectively, of the Trust’s long-term investments.

14


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Insured Municipal 2008 Term Trust (BRM)

    Principal      
    Amount   Option Call  
Rating1
(000) Description Provisions2 Value






          LONG-TERM INVESTMENTS—149.9%      
          Alabama 2.1%      
   AAA  
$
2,410   Auburn Univ., 5.00%, 4/01/09, AMBAC
No Opt. Call
$
2,596,100
   AAA     6,555   Birmingham Jefferson Civic Ctr. Auth., Ser. A, 4.25%, 1/01/09, FSA
No Opt. Call
  6,832,277
           
 
           
  9,428,377
           
 
          Alaska—0.9%
   
   AAA     4,000   Anchorage, GO, Ser. B, 3.75%, 7/01/09, MBIA
No Opt. Call
  4,082,680
           
 
          Arizona—2.0%
   
   AAA     4,000   Chandler, GO, Zero Coupon, 7/01/08, FGIC
No Opt. Call
  3,519,000
   AAA     1,000   Phoenix Str. & Hwy., 4.25%, 7/01/09, FGIC
No Opt. Call
  1,046,780
   AAA     4,200   Pima Cnty. Str. & Hwy., 4.125%, 7/01/09, FGIC
07/08 @ 101
  4,372,452
               
                8,938,232
               
          California—2.2%      
          California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A,      
   AAA     5,000      3.125%, 5/01/08, FSA No Opt. Call   5,051,100
   AAA     5,000      3.375%, 5/01/09, MBIA No Opt. Call   5,050,250
               
                10,101,350
               
          Colorado—2.4%      
   AAA     2,000   E-470 Pub. Hwy. Auth., Ser. B, Zero Coupon, 9/01/11, MBIA No Opt. Call   1,473,800
   AAA     1,000   El Paso Cnty., COP, Detention Fac. Proj., Ser. B, 3.20%, 12/01/08, AMBAC No Opt. Call   1,007,330
   AAA     6,965   Regl. Transp. Dist., COP, Transp. Vehicles Proj., Ser. A, 5.00%, 6/01/08, MBIA 06/07 @ 101   7,471,634
   AAA     1,000   Thornton, COP, 3.25%, 12/01/08, AMBAC No Opt. Call   1,009,380
               
                10,962,144
               
          Delaware—0.1%      
   AAA     650   Delaware River & Bay Auth., 3.25%, 1/01/09, MBIA No Opt. Call   650,806
               
          District of Columbia—3.1%      
          Dist. of Columbia, GO,      
   AAA     195      Ser. B, 5.50%, 6/01/09, FSA ETM   215,754
   AAA     2,605      Ser. B, 5.50%, 6/01/09, FSA No Opt. Call   2,866,568
   AAA     10,000      Ser. B-1, 5.50%, 6/01/08, AMBAC No Opt. Call   10,914,000
               
                13,996,322
               
          Florida—4.6%      
   AAA     2,280   Broward Cnty. Sch. Brd., COP, Ser. B, 4.25%, 7/01/09, FSA No Opt. Call   2,380,252
   AAA     13,890   Florida Dept. of Env. Protection Presvtn., Ser. B, 5.00%, 7/01/09, MBIA No Opt. Call   14,996,477
   AAA     1,300   Palm Beach, Restoration Proj., Ser. A, 5.00%, 1/01/09, FSA No Opt. Call   1,396,564
   AAA     2,080   Tampa Wtr. & Swr., 5.50%, 10/01/08, FSA No Opt. Call   2,282,717
               
                21,056,010
               
          Georgia—5.8%      
   AAA     5,000   Georgia, GO, Ser. E, 5.25%, 2/01/10 No Opt. Call   5,491,300
   AAA     20,000   Monroe Cnty., PCR, Pwr. Co. Plant Vogtle Proj., 4.20%, 1/01/12, AMBAC No Opt. Call   20,773,000
               
                26,264,300
               
          Hawaii—3.7%      
          Hawaii, GO, FSA,      
   AAA     6,510      Ser. CY, 4.00%, 2/01/09 No Opt. Call   6,729,908
   AAA     8,045      Ser. CZ, 3.25%, 7/01/09 No Opt. Call   8,045,965
   AAA     1,880   Honolulu City and Cnty., Ser. A, 5.00%, 3/01/09, MBIA No Opt. Call   2,025,324
               
                16,801,197
               
          Illinois—16.9%      
   AAA     14,205   Chicago O’Hare Intl. Arpt., Ser. A, 6.25%, 1/01/08, MBIA 01/05 @ 102   14,791,098
          Chicago Park Dist., Parking Rev., GO,      
   AAA     3,290      Ser. A, 3.00%, 1/01/08, FGIC No Opt. Call   3,292,138
   AAA     1,750      Ser. A, 3.50%, 1/01/09, FGIC No Opt. Call   1,767,395
   AAA     1,000      Ser. C, 3.00%, 1/01/09, AMBAC No Opt. Call   984,530
   AAA     2,930   Chicago Proj. & Refunding, Ser. A, 5.00%, 1/01/09, AMBAC No Opt. Call   3,141,282
   AAA     3,105   Chicago Pub. Bldg., Ser. A, Zero Coupon, 1/01/07, MBIA ETM   2,900,443

See Notes to Financial Statements.

15


BlackRock Insured Municipal 2008 Term Trust (BRM) (continued)

    Principal      
    Amount   Option Call  
Rating1
(000) Description Provisions2 Value







          Illinois (continued)      
          Cook Cnty. High Sch., GO,      
   AAA   $ 5,980      J. Sterling Morton Twnshp., Zero Coupon, 12/01/09, FGIC
No Opt. Call
$ 4,856,537
   AAA     2,000      Arlington Heights, 4.50%, 12/01/08, FSA
No Opt. Call
  2,115,240
   AAA     8,985   Du Page Cnty. Forest Presvtn. Dist., Zero Coupon, 11/01/08
No Opt. Call
  7,693,766
          Illinois, GO, Ser. 1, MBIA,
   
   AAA     6,750      3.50%, 7/01/08
No Opt. Call
  6,883,515
   AAA     5,000  
   3.75%, 7/01/09
No Opt. Call
  5,119,550
   AAA     13,000   Illinois Dev. Fin. Auth., Gas Sply., 3.05%, 2/01/33, AMBAC
No Opt. Call
  12,863,890
   AAA     1,455   Kane & Du Page Cntys. Sch. Dist., GO, Ser. A, 3.75%, 1/01/09, FSA
No Opt. Call
  1,484,537
          Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., FGIC,
   
   AAA     8,385      Zero Coupon, 6/15/08
ETM
  7,407,393
   AAA     215      Zero Coupon, 6/15/08
No Opt. Call
  188,099
   AAA     1,570      Ser. A, Zero Coupon, 6/15/08
ETM
  1,386,954
           
 
           
  76,876,367
           
 
          Indiana—1.5%
   
          Indiana Hlth. Fac. Fin. Auth., Hosp. Rev. & Impvt., Ancilla Sys. Inc., MBIA,
   
   AAA     3,860      Ser. A, 6.25%, 7/01/08 07/04 @ 100   3,860,000
   AAA     2,965      Ser. B, 6.25%, 7/01/08 07/04 @ 100   2,965,000
               
                6,825,000
               
          Kansas—0.2%      
   AAA     1,000   Kansas Dev. Fin. Auth., Pub. Wtr. Sply., 4.00%, 4/01/09, AMBAC No Opt. Call   1,034,060
               
          Kentucky—0.7%      
   AAA     3,890   Owensboro Elec. Lt. & Pwr., Ser. B, Zero Coupon, 1/01/09, AMBAC No Opt. Call   3,308,289
               
          Louisiana—1.3%      
   AAA     5,770   Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. A, 3.50%, 5/15/09, MBIA No Opt. Call   5,808,890
               
          Massachusetts—0.1%      
   AAA     355   Massachusetts Hsg. Fin. Agcy. Hsg. Projs., Ser. A, 5.95%, 10/01/08, AMBAC 08/04 @ 101   357,279
               
          Michigan—6.5%      
   AAA     1,665   Detroit, GO, 3.50%, 4/01/09, MBIA No Opt. Call   1,686,845
   AAA     6,315   Detroit City Sch. Dist., GO, Sch. Bldg. & Site Impvt., Ser. A, 4.00%, 5/01/09, FGIC No Opt. Call   6,539,435
          Lake Orion, Cmnty. Sch. Dist., AMBAC,      
   AAA     3,290 3
   6.60%, 5/01/05
N/A   3,457,165
   AAA     3,285 3
   6.70%, 5/01/05
N/A   3,454,572
   AAA     3,000   Michigan Trunk Line, Ser. A, 4.125%, 11/01/08, FSA No Opt. Call   3,120,810
   AAA     2,535   Washtenaw Cmnty. Coll., 4.00%, 4/01/09, MBIA No Opt. Call   2,623,598
   AAA     2,695   West Ottawa Pub. Sch. Dist., GO, Ser. B, 3.50%, 5/01/09, FGIC No Opt. Call   2,731,005
   AAA     2,000   Western Twnshps. Util. Auth. Sewage Disp. Sys., 5.00%, 1/01/09, FGIC No Opt. Call   2,149,420
   AAA     3,400   Wyandotte Elec., 6.25%, 10/01/08, MBIA No Opt. Call   3,654,966
               
                29,417,816
               
          Mississippi—0.5%      
   AAA     2,175   De Soto Cnty. Sch. Dist., GO, 3.25%, 2/01/09, FSA No Opt. Call   2,175,000
               
          Nevada—3.0%      
   AAA     6,270   Clark Cnty. Sch. Dist, Ser. A, 4.00%, 6/01/09, FGIC No Opt. Call   6,496,598
   AAA     2,245   Las Vegas Clark Cnty. Library Dist., 4.75%, 2/01/09, FGIC No Opt. Call   2,391,935
          Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC,      
   AAA     2,085      Zero Coupon, 1/01/09 No Opt. Call   1,753,777
   AAA     3,585      Zero Coupon, 1/01/10 No Opt. Call   2,858,751
               
                13,501,061
               
          New Jersey—8.0%      
          Monmouth Cnty. Impvt. Auth., Gov’t. Loan,      
   AAA     1,220      3.10%, 4/15/09, AMBAC No Opt. Call   1,216,291
   AAA     1,000      5.00%, 12/01/08, FSA No Opt. Call   1,081,490
          New Jersey Econ. Dev. Auth., Ser. A, MBIA,      
   AAA     1,220      Econ. Recovery Fund, 4.50%, 3/15/09 No Opt. Call   1,290,284
   AAA     30,275 3    Mkt. Transp. Fac. Rev., 5.80%, 7/01/04 N/A   30,880,500
   AAA     1,750   New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. C, 5.25%, 12/15/08, AMBAC No Opt. Call   1,900,518
               
                36,369,083
               
          New Mexico—1.1%      
   AAA     2,030   Farmington Util. Sys., Ser. A, 3.50%, 5/15/09, FSA No Opt. Call   2,057,344
   AAA     2,825   New Mexico Fin. Auth., Pub. Proj., Ser. A, 3.80%, 6/01/08, MBIA No Opt. Call   2,907,603
               
                4,964,947
               

See Notes to Financial Statements.

16


BlackRock Insured Municipal 2008 Term Trust (BRM) (continued)

    Principal        
    Amount     Option Call  
Rating1
(000) Description Provisions2 Value








          New York—14.9%        
   AAA   $ 2,000   Erie Cnty., Public Impvt., Ser. A, 4.50%, 3/15/09, FGIC
No Opt. Call
$ 2,120,600
   AAA     15,915   New York, GO, Ser. F, 5.25%, 9/15/09, MBIA 09/08 @ 101   17,251,701
          New York City, GO, Ser. E, MBIA,        
   AAA     5,000      6.125%, 8/01/06   No Opt. Call   5,377,950
   AAA     15,500      6.20%, 8/01/07   No Opt. Call   17,096,965
          New York City, Ser. G, MBIA,        
   AAA     2,890 3    5.75%, 2/01/06   N/A   3,100,479
   AAA     2,110      5.75%, 2/01/08   02/06 @ 101.5   2,240,229
   AAA     4,250   New York City Hlth. & Hosp. Corp., Hlth. Sys. Svcs., Ser. A, 3.50%, 2/15/09, AMBAC No Opt. Call   4,287,910
          New York Env. Fac. Corp., PCR, Ser. D,        
   AAA     2,545 3    6.50%, 11/15/04   N/A   2,643,721
   AAA     2,370 3    6.50%, 11/15/04   N/A   2,461,932
   AAA     1,215 3    6.50%, 11/15/04   N/A   1,262,130
   AAA     950 3    6.50%, 11/15/04   N/A   986,851
   AAA     1,030      6.50%, 5/15/07   11/04 @ 102   1,068,985
   AAA     80      6.50%, 11/15/07   11/04 @ 102   83,028
          New York Thruway Auth. Svc. Contract Rev., Local Highway and Bridge, Ser. A, MBIA,      
   AAA     680 3    5.40%, 1/01/05   N/A   707,152
   AAA     2,715      5.40%, 1/01/09   01/05 @ 102   2,817,953
   AAA     4,000   Port Auth. of NY & NJ, Ser. 129, 2.875%, 11/01/08, FSA No Opt. Call   3,979,600
               
                  67,487,186
                 
          North Carolina—8.4%        
   AAA     1,000 3 Cumberland Cnty., COP, Civic Ctr. Proj., Ser. A, 6.375%, 12/01/04, AMBAC N/A   1,040,620
          No. Carolina Eastn. Mun. Pwr. Agcy., Sys. Rev., Ser. B,      
   AAA     13,500      6.125%, 1/01/09, FGIC   No Opt. Call   15,139,035
   AAA     5,000      7.00%, 1/01/08, CAPMAC   No Opt. Call   5,657,300
   AAA     14,675      7.25%, 1/01/07, CAPMAC   No Opt. Call   16,284,994
                 
                  38,121,949
                 
          Ohio—1.3%        
   AAA     2,410 3 Cleveland, GO, 6.40%, 11/15/04, MBIA   N/A   2,502,158
          Ohio Bldg. Auth., Ser. A,        
   AAA     1,000 3    Juvenile Correctional Proj., 6.50%, 10/01/04, AMBAC N/A   1,032,500
   AAA     2,000      Workers Comp. Facs., 5.00%, 4/01/09, FGIC No Opt. Call   2,157,180
               
                  5,691,838
                 
          Oregon—1.9%        
   AAA     1,285   Lane Cnty. Sch. Dist., No. 4, 3.00%, 1/01/09, FSA No Opt. Call   1,276,982
          Oregon Dept. of Admin. Svcs., FSA,        
   AAA     2,905      COP, 5.00%, 11/01/08   No Opt. Call   3,130,108
   AAA     2,255      Lottery Rev., Ser. C, 3.125%, 4/01/09   No Opt. Call   2,252,610
   AAA     2,000   Washington & Clackamas Cntys. Sch. Dist., GO, 3.75%, 6/15/08, MBIA No Opt. Call   2,059,100
               
                  8,718,800
                 
          Pennsylvania—11.8%        
   AAA     1,460   Bensalem Twnshp. Sch. Dist., GO, 3.25%, 8/15/09, FGIC No Opt. Call   1,460,190
   AAA     1,500   Bristol Twnshp. Sch. Dist., 4.25%, 2/15/09, FGIC No Opt. Call   1,567,035
          Dauphin Cnty. Gen. Auth., HAPSCO-Western Pennsylvania Hosp. Proj., MBIA,      
   AAA     6,910      Ser. A, 6.25%, 7/01/08   08/04 @ 100   6,928,242
   AAA     3,530      Ser. B, 6.25%, 7/01/08   ETM   3,763,757
   AAA     3,500   Indiana Cnty. Indl. Dev. Auth., PCR, Elec. & Gas Corp., Ser. A, 6.00%, 6/01/06, MBIA No Opt. Call   3,747,800
   AAA     16,250   Lehigh Cnty. Indl. Dev. Auth., PCR, 3.125%, 11/01/08, AMBAC No Opt. Call   16,284,775
          Pennsylvania Dept. of Gen. Svcs., COP, FSA,      
   AAA     2,075      4.50%, 5/01/08   No Opt. Call   2,186,448
   AAA     2,120      4.50%, 11/01/08   No Opt. Call   2,237,278
   AAA     2,165      4.50%, 5/01/09   No Opt. Call   2,289,964
   AAA     2,220      4.50%, 11/01/09   No Opt. Call   2,349,471
   AAA     3,175   Philadelphia, GO, 4.10%, 9/15/08, FSA   No Opt. Call   3,302,444
   AAA     3,125   Pittsburgh Pub. Parking Auth., Parking Rev., 3.25%, 12/01/08, AMBAC No Opt. Call   3,141,469
   AAA     3,955   West Chester Area Sch. Dist., GO, Ser. AA, 3.65%, 1/15/09, MBIA 07/07 @ 100   4,029,947
               
                  53,288,820
                 
          South Carolina—0.8%        
   AAA     2,020   Chester Cnty. Sch. Dist., 3.25%, 2/01/09, FSA No Opt. Call   2,028,545
   AAA     1,705   Lexington Cnty. Sch. Dist. 1, COP, 3.50%, 3/01/09, AMBAC No Opt. Call   1,730,677
               
                  3,759,222
                 

See Notes to Financial Statements.

17


BlackRock Insured Municipal 2008 Term Trust (BRM) (continued)

    Principal        
    Amount     Option Call  
Rating1
(000) Description Provisions2 Value








          Tennessee—0.2%        
   AAA   $ 1,000   Clarksville Wtr., Swr & Gas Rev., 4.30%, 2/01/09, FSA
No Opt. Call
$ 1,046,450
           


          Texas—24.6%  
   
   AAA     5,380   Austin, GO, Pub. Impvt., 3.50%, 9/01/08, FSA
No Opt. Call
  5,468,985
          Austin Util. Sys.,  
   
   AAA     11,515      Ser. A, Zero Coupon, 11/15/08, MBIA
No Opt. Call
  9,910,039
   AAA     5,000      Ser. A, Zero Coupon, 11/15/09, AMBAC
No Opt. Call
  4,091,200
   AAA     5,000      Ser. A, Zero Coupon, 11/15/09, MBIA   
No Opt. Call
  4,091,200
   AAA     5,000      6.625%, 11/15/08, AMBAC  
No Opt. Call
  5,676,300
          Coppell Indpt. Sch. Dist., MBIA,  
   
   AAA     1,430      6.10%, 8/15/09  
ETM
  1,620,004
   AAA     620      6.10%, 8/15/09   08/04 @ 100   623,162
   AAA     2,500   Dallas Wtrwks. & Swr. Sys., 3.50%, 4/01/09, FSA No Opt. Call   2,527,300
   AAA     2,000   Houston, Pub. Impvt., Ser. A-1, 5.00%, 3/01/09, MBIA No Opt. Call   2,153,700
   AAA     4,390   Houston Indpt. Sch. Dist., Zero Coupon, 8/15/09, AMBAC No Opt. Call   3,636,588
          Lower Colorado River Auth.,        
   AAA     2,010      3.50%, 5/15/09, MBIA   No Opt. Call   2,032,552
   AAA     2,690      5.25%, 5/15/09, FSA   No Opt. Call   2,930,298
   AAA     1,650   Lubbock Cnty., 3.50%, 2/15/09, FGIC   No Opt. Call   1,666,830
   AAA     1,500   North Texas Tollway Auth., Ser. C, 5.00%, 1/01/09, FSA No Opt. Call   1,608,825
   AAA     6,000   San Antonio Elec. & Gas, Ser. B, Zero Coupon, 2/01/10, FGIC ETM   4,818,960
   AAA     9,050   Tarrant Regl. Wtr. Dist., Impvt., 3.50%, 3/01/09, FSA No Opt. Call   9,147,106
          Texas Mun. Pwr. Agcy.,        
   AAA     980      Zero Coupon, 9/01/08, AMBAC   ETM   856,853
   AAA     14,020      Zero Coupon, 9/01/08, AMBAC   No Opt. Call   12,175,809
   AAA     1,045      Zero Coupon, 9/01/09, AMBAC   ETM   874,362
   AAA     15,130      Zero Coupon, 9/01/09, AMBAC   No Opt. Call   12,500,255
   AAA     7,000 3    5.00%, 9/01/04, FGIC   N/A   7,040,880
          Texas Pub. Fin. Auth.,        
   AAA     2,270      3.50%, 2/01/09, FGIC   No Opt. Call   2,293,926
   AAA     3,000      Ser. A, 5.50%, 2/01/09, AMBAC   02/08 @ 101   3,274,710
   AAA     5,900      Ser. B, 6.25%, 2/01/09, AMBAC   No Opt. Call   6,633,134
   AAA     1,825   Williamson Cnty., GO, Ser. B, 5.00%, 2/15/09, FSA No Opt. Call   1,959,941
   AAA     2,275   Ysleta Indpt. Sch. Dist., GO, Zero Coupon, 8/15/08 No Opt. Call   1,977,089
               
                  111,590,008
                 
          Utah—3.6%        
          Intermountain Pwr. Agcy., Sply., Ser. B, MBIA,      
   AAA     2,215      6.00%, 7/01/07   ETM   2,433,377
   AAA     1,285      6.00%, 7/01/07   No Opt. Call   1,403,554
   AAA     1,550 3 Salt Lake Cnty. Mun. Bldg. Auth., Ser. A, 6.05%, 10/01/04, MBIA N/A   1,583,279
   AAA     10,300 3 Utah, GO, Ser. F, 5.00%, 7/01/07   N/A   11,021,103
                 
                  16,441,313
                 
          Washington—10.5%        
   AAA     1,250   Clark Cnty. Pub. Util. Dist., No. 1 Elec. Rev., 5.00%, 1/01/09, MBIA No Opt. Call   1,340,688
          King Cnty., GO,        
   AAA     3,060      Pub. Transp. Sales Tax, 3.50%, 12/01/08, FSA No Opt. Call   3,101,065
   AAA     12,850      Ser. D, 5.55%, 12/01/08, MBIA   12/07 @ 102   14,129,860
   AAA     5,710   Seattle Impvt. Ltd. Tax, 4.00%, 7/01/08, FSA No Opt. Call   5,912,134
          Washington Hlth. Care Fac. Auth., Catholic Hlth. Initiatives, Ser. A, MBIA,      
   AAA     1,010      5.30%, 12/01/08   No Opt. Call   1,093,436
   AAA     1,000      5.40%, 12/01/10   06/10 @ 101   1,098,430
   AAA     2,045   Washington Motor Vehicle Fuel Tax, GO, 4.00%, 7/01/09, MBIA No Opt. Call   2,114,428
          Washington Pub. Pwr. Sply.,        
   AAA     11,000      Ser. A, 5.80%, 7/01/07, FSA   No Opt. Call   11,952,160
   AAA     5,550      Nuclear Proj. No. 3, Zero Coupon, 7/01/07, MBIA No Opt. Call   5,037,679
   AAA     2,000      Nuclear Proj. No. 3, Zero Coupon, 7/01/08, MBIA No Opt. Call   1,740,300
               
                  47,520,180
                 
          West Virginia—1.5%        
   AAA     1,550   West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., Ser. A, 4.25%, 6/01/08, MBIA No Opt. Call   1,617,905
          West Virginia Higher Ed. Policy Comm. Rev., Ser. A, MBIA,      
   AAA     2,455      State College Fac., 5.00%, 4/01/09   No Opt. Call   2,642,341
   AAA     2,135      Univ. Facs., 5.00%, 4/01/09   No Opt. Call   2,297,922
                 
                  6,558,168
                 

See Notes to Financial Statements.

18


BlackRock Insured Municipal 2008 Term Trust (BRM) ( continued)

    Principal          
    Amount     Option Call    
Rating1
(000) Description Provisions2 Value  









          Wisconsin—3.1%          
        Wisconsin, GO,          
AAA
  $ 7,705      Ser. A, 4.00%, 5/01/09, FGIC     
No Opt. Call
$ 7,975,369  
AAA
    6,080      Ser. C, 4.00%, 5/01/09, MBIA  
No Opt. Call
  6,293,347  
           


 
           
  14,268,716  
           


 
        Wyoming—0.6%  
     
        Albany Cnty. Impvts. Statutory Trust, COP, MBIA,
     
AAA
    1,270      3.75%, 1/15/09  
No Opt. Call
  1,296,530  
AAA
    1,395      3.75%, 7/15/09  
No Opt. Call
  1,424,044  
             

 
                2,720,574  
             

 
        Total Long-Term Investments (cost $648,286,546)     680,132,434  
           

 
                   
        SHORT-TERM INVESTMENTS—7.6%        
        Kansas—1.0%          
A1
+   4,655 4 Kansas Dept. Transp. Hwy, Ser. B-1, 1.08%, 7/01/04, FRDD
N/A
  4,655,000  
         


 
        Michigan—0.4%  
     
        Detroit, Sewage Disp. Rev.,  
     
A1
+   995 4    Ser. A, 1.03%, 7/07/04, MBIA, FRWD
N/A
  995,000  
A1
+   500 4    Ser. C-1, 1.08%, 7/01/04, FSA, FRWD
N/A
  500,000  
           


 
             
  1,495,000  
             


 
          Ohio—2.9%  
     
VMIG1
    5,000 4 Hamilton Ohio Elec. Rev., Ser. B, 1.08%, 7/01/04, FSA, FRWD
N/A
  5,000,000  
VMIG1
    8,105 4 Univ. of Akron, 1.08%, 7/01/04, FGIC, FRWD
N/A
  8,105,000  
             

 
                  13,105,000  
               

 
          Puerto Rico—1.2%          
            A1     3,000 4 Puerto Rico Comnwlth. Gov’t. Dev. Bank, 1.02%, 7/01/04, MBIA, FRDD
N/A
  3,000,000  
            A1     2,500 4 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Transp. Rev., Ser. A, 1.00%,
     
             7/07/04, AMBAC, FRWD  
N/A
  2,500,000  
             


 
             
  5,500,000  
             


 
   


   
     
   
Shares
   
     
   
(000)
   
     
   
   
     
          Money Market Fund—2.1%  
     
      9,600   AIM Tax Free Investment Co. Cash Reserve Portfolio
N/A
  9,600,000  
             

 
          Total Short-Term Investments (cost $34,355,000)     34,355,000  
             

 
          Total Investments—157.5% (cost $682,641,546)     714,487,434  
          Other assets in excess of liabilities—2.3%     10,236,534  
          Preferred shares at redemption value, including dividends payable—(59.8)%     (271,035,177 )
             

 
          Net Assets Applicable to Common Shareholders—100%   $ 453,688,791  
             

 

 


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. Rate shown as of June 30, 2004.

Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 93.2% of the Trust’s total investments.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation FRWD Floating Rate Weekly Demand
CAPMAC Capital Markets Assurance Company FSA Financial Security Assurance
COP Certificate of Participation GO General Obligation
ETM Escrowed to Maturity MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FRDD Floating Rate Daily Demand      

See Notes to Financial Statements.

19


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Insured Municipal Term Trust (BMT)

    Principal      
    Amount   Option Call  
Rating1
  (000) Description Provisions2 Value







          LONG-TERM INVESTMENTS—156.3%      
          Alabama—0.9%      
AAA   $ 1,410   Alabama Fed. Hwy. Fin. Auth., Grant Antic., Ser. A, 4.50%, 3/01/11, MBIA
No Opt. Call
$ 1,476,707
AAA     1,000   Birmingham Jefferson Civic Ctr. Auth., Ser. A, 4.375%, 1/01/11, FSA
No Opt. Call
  1,039,110
           
 
           
  2,515,817
           
 
          Alaska—7.9%
   
          Anchorage, GO, Ser. B,
   
AAA     14,345      4.125%, 7/01/11, MBIA
No Opt. Call
  14,690,428
AAA     6,000      4.625%, 7/01/10, FGIC
No Opt. Call
  6,347,520
AAA     1,260   Univ. of Alaska, Ser. K, 3.75%, 10/01/10, FGIC
No Opt. Call
  1,270,949
           
 
           
  22,308,897
           
 
          Arizona—3.1%
   
AAA     1,000   Arizona St. Univ., 4.20%, 7/01/11, FGIC
No Opt. Call
  1,032,390
AAA     1,030   Mesa, GO, Ser. A, 3.75%, 7/01/10, FGIC
No Opt. Call
  1,045,852
AAA     6,340   Pima Cnty. Str. & Hwy., 4.25%, 7/01/11, FGIC
07/08 @ 101
  6,518,598
           
 
           
  8,596,840
           
 
          Arkansas—0.2%
   
AAA     500   Little Rock, Cap. Impvt., 4.00%, 4/01/11, FSA No Opt. Call   510,320
               
          California—8.4%      
          California, GO, FGIC,      
AAA     4,355 3    6.80%, 11/01/04 NA   4,519,183
AAA     145      6.80%, 11/01/10 11/04 @ 102   150,200
          California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A,      
AAA     5,000      3.60%, 5/01/10, AMBAC No Opt. Call   5,053,900
AAA     3,500      3.70%, 5/01/11, MBIA No Opt. Call   3,522,820
AAA     6,100   Contra Costa Trans. Auth., Sales Tax Rev., 6.50%, 3/01/09, FGIC ETM   6,823,399
AAA     3,065   Los Angeles Cnty., Asset Leasing Corp., 6.05%, 12/01/10, AMBAC No Opt. Call   3,530,574
               
                23,600,076
               
          Colorado—1.2%      
AAA     3,245   Weld Cnty. Sch. Dist. No. 6, 3.75%, 12/01/10, FSA No Opt. Call   3,281,441
               
          Delaware—0.4%      
AAA     1,015   Delaware River & Bay Auth., 3.75%, 1/01/11, MBIA No Opt. Call   1,019,537
               
          District of Columbia—3.9%      
AAA     10,000   Dist. of Columbia, GO, Ser. B, 5.50%, 6/01/11, FSA No Opt. Call   11,094,100
               
          Florida—0.9%      
AAA     2,320   Tampa Wtr. & Swr., 5.50%, 10/01/10, FSA No Opt. Call   2,580,397
               
          Georgia—1.8%      
AAA     5,000 3 Henry Cnty. Hosp. Auth., Ser. B, 6.375%, 7/01/04, FGIC NA   5,000,000
               
          Hawaii—4.6%      
AAA     11,080   Hawaii, GO, Ser. CN, 5.25%, 3/01/11, FGIC 03/07 @ 102   11,930,279
AAA     1,000   Univ. of Hawaii, Univ. Sys., 3.875%, 7/15/10, FGIC No Opt. Call   1,020,590
               
                12,950,869
               
          Illinois—16.3%      
          Chicago, GO, Ser. A,      
AAA     4,000      4.375%, 1/01/11, AMBAC No Opt. Call   4,149,400
AAA     1,790      5.00%, 1/01/11, MBIA No Opt. Call   1,920,849
          Chicago Park Dist., Parking Rev., GO, Ser. A, FGIC,      
AAA     3,120      3.50%, 1/01/10 No Opt. Call   3,119,189
AAA     3,695      4.00%, 1/01/11 No Opt. Call   3,753,750
AAA     1,000   Du Page & Cook Cntys. Sch. Dist., GO, 4.50%, 1/01/11, FGIC No Opt. Call   1,044,500
AAA     1,750   Du Page & Will Cntys. Sch. Dist., GO, 4.25%, 12/30/10, FGIC No Opt. Call   1,815,100
          Du Page Cnty. Forest Presvtn. Dist.,      
AAA     5,000      Zero Coupon, 11/01/10 No Opt. Call   3,843,500
AAA     11,965      Zero Coupon, 11/01/11 No Opt. Call   8,717,101

See Notes to Financial Statements.

20


BlackRock Insured Municipal Term Trust (BMT) (continued)

    Principal        
    Amount     Option Call  
Rating1
(000) Description Provisions2 Value








          Illinois (continued)        
          Illinois, GO, Ser. 1,        
AAA   $ 1,500      4.50%, 2/01/11, FGIC  
No Opt. Call
$ 1,578,240
AAA     2,000      4.50%, 4/01/11, FSA  
No Opt. Call
  2,104,220
AAA     4,000      5.25%, 2/01/11, FGIC  
No Opt. Call
  4,382,880
AAA     5,000   Illinois Edl. Fac. Auth., 5.70%, 7/01/13, FGIC 08/04 @ 101   5,124,250
AAA     2,265   Kane & Du Page Cntys. Sch. Dist., GO, Ser. A, 4.00%, 1/01/11, FSA No Opt. Call   2,301,013
AAA     1,025   Orland Park, GO, Ser. A, 3.50%, 12/01/10, FGIC No Opt. Call   1,019,035
AAA     1,075   Rockford Sch. Dist., GO, 4.30%, 2/01/11, FGIC No Opt. Call   1,110,948
               
                  45,983,975
                 
          Indiana—3.9%        
AAA     2,635   Indiana Mun. Pwr. Agcy., Pwr. Sply. Sys., Ser. A, 4.50%, 1/01/11, AMBAC No Opt. Call   2,752,258
          Indianapolis Loc. Pub. Impvt. Bond Bank, Wtr. Wks. Proj., Ser. A, MBIA,      
AAA     2,085      4.25%, 7/01/10   No Opt. Call   2,162,750
AAA     2,815      4.375%, 1/01/11   No Opt. Call   2,920,140
AAA     2,950      4.375%, 7/01/11   No Opt. Call   3,058,707
                 
                  10,893,855
                 
          Kansas—0.7%        
          Kansas Dev. Fin. Auth., Pub. Wtr. Sply., AMBAC,      
AAA     1,025      4.125%, 4/01/10   No Opt. Call   1,061,562
AAA     1,000      4.25%, 4/01/11   No Opt. Call   1,035,460
                 
                  2,097,022
                 
          Kentucky—3.5%        
AAA     12,675   Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/10, MBIA No Opt. Call   9,765,074
               
          Louisiana—1.8%        
AAA     5,000   Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. B, 4.00%, 5/15/11, MBIA No Opt. Call   5,065,500
               
          Massachusetts—2.9%        
AAA     7,865 3 Massachusetts, GO, Ser. C, 6.70%, 11/01/04, FGIC NA   8,080,658
               
          Michigan—3.8%        
          Detroit, GO, MBIA,        
AAA     1,580      4.00%, 4/01/10   No Opt. Call   1,624,493
AAA     1,955      4.00%, 4/01/11   No Opt. Call   2,002,408
          Michigan Mun. Bd. Auth.,        
AAA     70      Ser. A, 6.50%, 11/01/12, MBIA   07/04 @ 101   70,891
AAA     730      Ser. B, 6.45%, 11/01/07, AMBAC   11/04 @ 102   756,098
AAA     730      Ser. B, 6.65%, 11/01/09, AMBAC   11/04 @ 102   756,565
AAA     1,310 3    Ser. G, 6.45%, 11/01/04, AMBAC   N/A   1,357,933
AAA     1,320 3    Ser. G, 6.65%, 11/01/04, AMBAC   N/A   1,369,130
AAA     2,810   Wyandotte City Sch. Dist., Bldg. & Site, 4.00%, 5/01/11, FSA No Opt. Call   2,873,815
               
                  10,811,333
                 
          Minnesota—1.8%        
AAA     2,800   Hopkins Indpt. Sch. Dist. No. 270, GO, Ser. B, 4.00%, 2/01/11, FSA No Opt. Call   2,868,040
  A+     2,180   So. Minnesota Mun. Pwr. Agcy., Ser. B, 5.75%, 1/01/11 ETM   2,222,990
               
                  5,091,030
                 
          Nevada—3.3%        
AAA     4,185 3 Clark Cnty. Sch. Dist., GO, 6.75%, 12/15/04, FGIC NA   4,328,587
          Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC,      
AAA     3,795      Zero Coupon, 1/01/11   No Opt. Call   2,884,276
AAA     2,870      Zero Coupon, 1/01/12   No Opt. Call   2,054,748
                 
                  9,267,611
                 
          New Jersey—0.3%        
AAA     1,000   Monmouth Cnty. Impvt. Auth., Gov’t. Loan, 3.375%, 12/01/10, FSA No Opt. Call   995,020
               
          New Mexico—4.0%        
AAA     1,750   Las Cruces Sch. Dist. No. 002, GO, 5.25%, 8/01/11, FSA 08/09 @ 100   1,895,670
          New Mexico Fin. Auth., Pub. Proj., Ser. A, MBIA,      
AAA     1,444      3.40%, 6/01/11   No Opt. Call   1,427,264
AAA     1,625      4.20%, 6/01/10   No Opt. Call   1,689,269
AAA     3,625      4.30%, 6/01/11   No Opt. Call   3,780,983
AAA     2,230   New Mexico Hwy. Comm., Ser. B, 4.75%, 6/15/11, AMBAC ETM   2,399,012
               
                  11,192,198
                 

See Notes to Financial Statements.

21


BlackRock Insured Municipal Term Trust (BMT) (continued)

    Principal          
    Amount       Option Call  
Rating1
(000) Description Provisions2 Value









          New York—15.8%          
AAA   $ 8,950   Long Island Pwr. Auth., Elec. Sys. Rev., Ser. A, 5.50%, 12/01/10, AMBAC
No Opt. Call
$ 9,935,574
AAA     4,500 3 New York City, GO, Ser. B1, 6.95%, 8/15/04, MBIA
N/A
  4,573,035
          New York Env. Fac. Corp., PCR, Ser. D,    
   
AAA     2,650 3    6.70%, 11/15/04       
N/A
  2,754,675
AAA     2,495 3
   6.70%, 11/15/04
N/A
  2,593,552
AAA     1,010  
   6.70%, 5/15/09
11/04 @ 102   1,048,946
AAA     2,135 3
   6.80%, 11/15/04
N/A   2,220,080
AAA     2,045 3
   6.80%, 11/15/04
N/A   2,126,493
AAA     785  
   6.80%, 5/15/10
11/04 @ 102   815,552
         
New York Med Care Fac. Fin., New York Hosp., Ser. A, AMBAC,
     
AAA     9,715 3
   6.60%, 2/15/05
N/A   10,221,637
AAA     2,695 3
   6.625%, 2/15/05
N/A   2,835,949
AAA     5,000  
New York St. Thruway Auth., Personal Income Tax Rev., Ser. A, 5.00%, 3/15/11, FSA
No Opt. Call   5,415,750
               
                    44,541,243
                   
          Ohio—0.7%          
AAA     1,000   Akron, GO, 4.00%, 12/01/10, MBIA     No Opt. Call   1,025,450
AAA     1,015   Univ. of Cincinnati, Ser. G, 3.50%, 6/01/09, AMBAC No Opt. Call   1,028,804
               
                    2,054,254
                   
          Oregon—3.8%          
AAA     1,995   Lane Cnty. Sch. Dist. No. 4, 3.75%, 1/01/11, FSA No Opt. Call   2,018,900
AAA     1,000   Oregon Dept. of Admin. Svcs., Lottery Rev., Ser. C, 3.50%, 4/01/11, FSA No Opt. Call   997,520
          Washington & Clackamas Cntys. Sch. Dist., GO, MBIA,      
AAA     3,820  
   4.00%, 6/15/10
    No Opt. Call   3,941,705
AAA     3,720  
   4.00%, 6/15/11
    No Opt. Call   3,824,421
                   
                    10,782,546
                   
          Pennsylvania—9.4%          
AAA     2,430   Central York Sch. Dist., GO, 4.125%, 6/01/11, FGIC No Opt. Call   2,508,756
AAA     3,530   Dauphin Cnty. Gen. Auth., HAPSCO-Western Pennsylvania Hosp. Proj., Ser. B, 6.25%,      
         
   7/01/08, MBIA
    ETM   3,763,757
AAA     7,500   Pennsylvania Higher Edl. Facs. Auth., Univ. of Pennsylvania Hlth. Svcs., Ser. A, 5.25%,      
         
   8/01/10, FSA
  08/09 @ 101   8,129,025
AAA     2,100   Philadelphia Wtr. & Wst., 5.625%, 6/15/08, AMBAC No Opt. Call   2,303,448
AAA     7,000   Pittsburgh, GO, Ser. A, 5.20%, 3/01/10, FGIC 09/05 @ 100   7,239,960
AAA     1,075   State Pub. Sch. Bldg. Auth., York Sch. Dist. Proj., 4.75%, 5/01/11, FSA No Opt. Call   1,149,788
AAA     1,250   Wilson Sch. Dist., GO, 4.00%, 5/15/10, FSA No Opt. Call   1,285,925
               
                    26,380,659
                   
          Rhode Island—1.9%          
AAA     5,000   Rhode Island & Providence Plantations, GO, Ser. B, 4.20%, 6/01/10, FGIC ETM   5,220,350
AAA     235   Rhode Island Clean Wtr. Protection Fin. Agcy., PCR, Ser. A, 6.70%, 10/01/10, MBIA 10/04 @ 100   237,916
               
                    5,458,266
                   
          South Carolina—5.4%          
AAA     14,925   Piedmont Mun. Pwr. Agcy., Elec. Rev., 6.30%, 1/01/11, MBIA 08/04 @ 101   15,113,950
               
          Tennessee—0.8%          
          Clarksville Wtr., Swr. & Gas, FSA,          
AAA     1,005  
   4.45%, 2/01/10
    No Opt. Call   1,055,290
AAA     1,100  
   4.65%, 2/01/11
    No Opt. Call   1,167,617
                   
                    2,222,907
                   
          Texas—16.1%          
AAA     1,090   Addison, GO, 3.375%, 2/15/11, FGIC     No Opt. Call   1,064,232
          Bexar Met. Wtr. Dist., Wtr. Wks. Sys., FSA,      
AAA     1,085  
   3.70%, 5/01/10
    No Opt. Call   1,096,078
AAA     1,090  
   3.80%, 5/01/11
    No Opt. Call   1,100,355
AAA     2,500   Dallas Ft. Worth Regl. Arpt., Ser. A, 7.375%, 11/01/10, FGIC 07/04 @ 102   2,550,000
AAA     2,000   Dallas Rapid Transit, 4.30%, 12/01/10, AMBAC No Opt. Call   2,079,180
          Harris Cnty., GO,          
AAA     1,500      Ser. A, 5.00%, 10/01/10, FSA     No Opt. Call   1,617,885
AAA     330      Ser. B, Zero Coupon, 8/15/08, FGIC     ETM   288,945
AAA     2,255      Ser. B, Zero Coupon, 8/15/08, FGIC     No Opt. Call   1,963,676
          Houston, GO, MBIA,          
AAA     5,000      Ser. A, 5.00%, 3/01/11     No Opt. Call   5,385,950
AAA     2,000      Ser. A1, 5.00%, 3/01/11     No Opt. Call   2,154,380

See Notes to Financial Statements.

22


BlackRock Insured Municipal Term Trust (BMT) (continued)

    Principal          
    Amount       Option Call  
Rating1
  (000)   Description Provisions2 Value








          Texas (continued)        
AAA
  $ 2,490   Houston Area Wtr. Corp., Northeast Wtr. Purification Proj., 4.50%, 3/01/11, FGIC
No Opt. Call
$ 2,615,297
AAA
    10,440   Houston Wtr. & Swr. Sys., Ser. C, Zero Coupon, 12/01/10, AMBAC
No Opt. Call
  8,078,368
AAA
    5,550   Katy Indpt. Sch. Dist., GO, Ser. A, Zero Coupon, 2/15/11
No Opt. Call
  4,220,997
AAA
    4,000   Texas Mun. Pwr. Agcy., 5.50%, 9/01/10, MBIA
No Opt. Call
  4,427,200
AAA
    2,245   Texas Pub. Fin. Auth., 4.00%, 2/01/11, FGIC
No Opt. Call
  2,291,629
AAA
    1,250   Texas Tech Univ. Revs., Ser. 9, 5.00%, 2/15/11, AMBAC
No Opt. Call
  1,348,975
AAA
    1,630   Texas Univ. Sys. Fin., 3.50%, 3/15/11, FSA
No Opt. Call
  1,616,373
AAA
    1,500   Univ. of Houston, Ser. A, 4.00%, 2/15/10, FSA
No Opt. Call
  1,537,515
           

                45,437,035
             

        Utah—2.8%        
AAA
    3,470   Intermountain Pwr. Agcy., Sply., Ser. A, 5.25%, 7/01/11, MBIA 07/09 @ 101   3,798,852
AAA
    1,450 3 Salt Lake Cnty. Mun. Bldg. Auth., Ser. A, 6.15%, 10/01/04, MBIA N/A   1,481,465
AAA
    3,175   Salt Lake Cnty. Wtr. Conservancy Dist., Ser. A, Zero Coupon, 10/01/10, AMBAC No Opt. Call   2,476,182
           

                7,756,499
             

        Washington—12.7%        
AAA
    7,345   Benton Cnty. Sch. Dist. No. 17, GO, Kennewick Sch., 4.50%, 12/01/10, FSA No Opt. Call   7,719,228
AAA
    1,000   Chelan Cnty. Sch. Dist., GO, 4.50%, 12/01/10, FSA No Opt. Call   1,050,950
AAA
    3,000   Clark Cnty. Pub. Util. Dist. No. 1, Elec. Rev., 4.50%, 1/01/11, AMBAC No Opt. Call   3,147,630
AAA
    2,040   Clark Cnty. Sch. Dist. No. 114, Evergreen, GO, 4.125%, 12/01/10, FSA No Opt. Call   2,100,506
AAA
    1,010   Tacoma, GO, 4.625%, 12/01/10, FGIC   No Opt. Call   1,068,620
        Washington, GO, MBIA,        
AAA
    5,000      Ser. A, 5.50%, 7/01/11   07/09 @ 100   5,469,150
AAA
    1,505      Ser. R, 3.125%, 1/01/11   No Opt. Call   1,446,501
        Washington Pub. Pwr. Sply. Sys., MBIA,        
AAA
    1,300      Ser. B, Zero Coupon, 7/01/10   No Opt. Call   1,014,403
AAA
    9,160      Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10 ETM   7,346,412
AAA
    3,745      Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10 No Opt. Call   2,922,261
AAA
    2,280   Whatcom Cnty. Sch. Dist. No. 503, GO, 4.50%, 12/01/10, FSA No Opt. Call   2,396,166
           

                35,681,827
             

        West Virginia—3.5%        
        West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., Ser. A, MBIA,      
AAA
    3,705      4.50%, 6/01/10   No Opt. Call   3,900,328
AAA
    4,420  
   4.50%, 6/01/11
  No Opt. Call   4,650,017
AAA
    1,170   West Virginia Sch. Bldg. Auth., 4.00%, 7/01/11, AMBAC No Opt. Call   1,195,763
           

                9,746,108
             

        Wisconsin—5.7%        
AAA
    1,045   Appleton Wtr. Wks., 4.375%, 1/01/11, FGIC No Opt. Call   1,088,932
        Wisconsin Clean Wtr., Ser. 2, MBIA,        
AAA
    4,640  
   4.00%, 6/01/10
  No Opt. Call   4,761,800
AAA
    9,850  
   4.00%, 6/01/11
  No Opt. Call   10,064,237
             

                15,914,969
             

        Wyoming—2.1%        
        Albany Cnty. Impvts. Statutory Trust, COP, MBIA,      
AAA
    1,325  
   4.00%, 1/15/10
  No Opt. Call   1,357,688
AAA
    1,450  
   4.00%, 7/15/10
  No Opt. Call   1,484,872
AAA
    1,480  
   4.00%, 1/15/11
  No Opt. Call   1,510,562
AAA
    1,510  
   4.00%, 7/15/11
  No Opt. Call   1,538,705
             

                5,891,827
             

        Total Long-Term Investments (cost $418,974,627)     439,683,660
           

See Notes to Financial Statements.

23


BlackRock Insured Municipal Term Trust (BMT) (continued)

Shares        
(000) Description Value  




  MONEY MARKET FUND—2.5%      
6,950
AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $6,950,000) $ 6,950,000  
   

 
  Total Investments—158.8% (cost $425,924,627)   446,633,660  
  Other assets in excess of liabilities—1.8%   5,143,798  
  Preferred shares at redemption value, including dividends payable—(60.6)%   (170,455,142 )
   

 
  Net Assets Applicable to Common Shareholders—100% $ 281,322,316  
   

 

 


1 Using the higher of S&P’s, Moody’s or Fitch’s rating.

2 Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.

3 This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.

Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 91.6% of the Trust’s total investments.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation GO General Obligation
ETM Escrowed to Maturity MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue






See Notes to Financial Statements.

24


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Municipal 2018 Term Trust (BPK)

  Principal  
 
  Amount  
Option Call
 
Rating1
  (000) Description
Provisions2
Value







        LONG-TERM INVESTMENTS—156.8%
   
        Alabama—5.0%
   
        Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj.,
   
Baa2
  $ 5,000      6.15%, 6/01/19
06/05 @ 102
$ 5,197,000
BBB
    1,000      Proj. A, 5.90%, 2/01/17
08/04 @ 102
  1,023,260
A2
    5,845   Huntsville Hlth. Care Auth., Ser. A, 5.625%, 6/01/22, GO
06/12 @ 101
  5,856,456
         


         
  12,076,716
         


        California—1.9%
   
         
A
    1,750   Agua Caliente Band of Cahuilla Indians, 5.60%, 7/01/13
No Opt. Call
  1,751,785
      
B-
    3,460   Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24
12/12 @ 102
  2,918,026
         


         
  4,669,811
         


        Colorado—2.1%
   
BBB
    5,000   Colorado Hsg. & Fin. Auth., Solid Wst. Rev., Waste Management Proj., 5.70%, 7/01/18
No Opt. Call
  4,997,000
         


        Connecticut—3.0%
   
   
Baa3
  3,750 3 Mashantucket Western Pequot Tribe, Spec. Rev., Ser. B, 5.75%, 9/01/18
09/07 @ 102
  3,868,387
BBB-
  3,150   Mohegan Tribe Indians, Pub. Impvt. Priority Dist., 6.00%, 1/01/16
01/11 @ 101
  3,282,836
       


       
  7,151,223
       


      Delaware—6.4%
   
A3
  14,000 3 Charter Mac Equity Issuer Trust, Ser. A-3, 6.80%, 10/01/52
10/14@100
  15,382,500
       


      Florida—13.0%
   
Baa1
  1,585   Capital Trust Agy. Mult. Fam., American Opp., Ser. A, 5.75%, 6/01/23
06/13 @ 102
  1,478,330
NR
  2,000   CFM Cmnty. Dev. Dist., Cap. Impvt., Ser. B, 5.875%, 5/01/14
No Opt. Call
  1,996,280
NR
  4,725   Live Oak Cmnty. Dev. Dist., No. 1, Spl. Assmt., Ser. B, 5.30%, 5/01/08
No Opt. Call
  4,739,175
BB
  4,515   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr., 6.75%, 11/15/21
11/14 @ 100
  4,546,695
NR
  5,025   Stevens Plantation Cmnty. Dist., Spl. Assmt. Rev., Ser. B, 6.375%, 5/01/13
No Opt. Call
  5,025,301
NR
  940   Sumter Landing Cmnty. Dev. Dist., 6.25%, 5/01/13
No Opt. Call
  952,822
NR
  5,500 4 Village Center Cmnty. Dev. Dist., Ser. B, 5.875%, 1/01/15
No Opt. Call
  5,516,115
NR
  5,290   Village Cmnty. Dev., Assmt. Rev., Ser. B, 5.40%, 5/01/07
No Opt. Call
  5,334,912
NR
  1,500   Westchester Cmnty. Dev. Dist. No. 1, Spl. Assmt., 6.00%, 5/01/23
05/13 @ 101
  1,484,415
       


       
  31,074,045
       


      Illinois—19.4%
   
NR
  1,825   Centerpoint Intermodal Ctr. Prog. Trust, Ser. A, 8.00%, 6/15/23
No Opt. Call
  1,770,141
AAA
  5,000   Chicago O’Hare Intl. Arpt., Ser. A, 5.75%, 1/01/18, MBIA
01/12 @ 100
  5,283,050
      Illinois Dev. Fin. Auth.,
   
A
  12,500 5    Adventist Hlth. Sys. Sunbelt Obl., 5.50%, 11/15/20
11/09 @ 101
  12,497,750
A2
  5,000      PCR, Ser. C, 5.95%, 8/15/26
12/06 @ 101
  5,101,250
BBB
  5,980   Illinois Edl. Facs. Auth., Student Hsg., Edl. Adv. Fund, Univ. Ctr. Proj., 6.00%, 5/01/22
05/12 @ 101
  6,051,640
A2
  5,000   Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22
01/13 @ 100
  5,048,300
      Illinois Sports Facs. Auth., Dedicated St. Tax Supported Rev., AMBAC,
   
AAA
  1,885      Zero Coupon, 6/15/19
06/15 @ 101
  1,449,697
AAA
  1,985      Zero Coupon, 6/15/20
06/15 @ 101
  1,515,528
AAA
  2,090      Zero Coupon, 6/15/21
06/15 @ 101
  1,585,829
      Kane & Du Page Cntys. Sch. Dist., GO, Ser. B, FSA,
   
AAA
  4,625      Zero Coupon, 1/01/18
01/12 @ 72.424
  2,345,430
AAA
  4,100      Zero Coupon, 1/01/19
01/12 @ 67.935
  1,946,680
AAA
  2,950      Zero Coupon, 1/01/21
01/12 @ 60.037
  1,225,754
AAA
  1,700      Zero Coupon, 1/01/22
01/12 @ 56.453
  661,776
       


       
  46,482,825
       


      Indiana—8.6%
   
AA
  13,970   Indiana Hlth. Fac. Fin. Auth., Sisters of St. Francis, 5.75%, 11/01/21
11/11 @ 101
  14,437,995
BBB
  4,000   Petersburg, PCR, Pwr. & Lt. Conv., 5.75%, 8/01/21
08/11 @ 102
  4,035,520
NR
  2,290   Vincennes Econ. Dev., Southwest Indiana Regl., 6.25%, 1/01/24
01/09 @ 102
  2,139,982
       


       
  20,613,497
       


      Louisiana—1.6%
   
NR
  3,730 4 Louisiana Pub. Facs. Auth., Dept. of Pub. Safety, 5.875%, 6/15/14
06/10 @ 100
  3,788,151
       


See Notes to Financial Statements.

25


BlackRock Municipal 2018 Term Trust (BPK) (continued)

Principal          
Amount       Option Call  
Rating1
(000)   Description Provisions2 Value







      Maryland—2.1%        
NR
$
5,170 4 Frederick Cnty., Urbana Cmnty. Dev. Auth., Ser. A, 5.80%, 7/01/20 07/07 @ 102 $ 5,051,659
         

      Michigan—9.1%        
BBB
  5,000   Dickinson Cnty. Econ. Dev. Corp., PCR, Champion Intl. Corp. Proj., 5.85%, 10/01/18 08/04 @ 102   5,113,000
A1
  5,450   Michigan Hosp. Fin. Auth., Henry Ford Hlth. Sys., Ser. A, 6.00%, 11/15/19 11/09 @ 101   5,665,983
BB+
  9,000   Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 07/07 @ 101   9,291,150
      Pontiac Tax Increment Fin. Auth., ACA,        
A
  700      Dev. Area 2, 5.625%, 6/01/22   06/12 @ 101   709,604
A
  1,000      Dev. Area 3, 5.375%, 6/01/17   06/12 @ 101   1,008,200
           

              21,787,937
           

      Mississippi—4.2%        
BBB
  9,000   Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22 No Opt. Call   10,115,550
         

      Nevada—2.5%        
NR
  1,100   Las Vegas Spec. Imp. Dist. No. 809, Summerlin Area, 5.35%, 6/01/17 12/04 @ 103   1,043,911
BBB+
  5,000   Nevada Dept. of Bus. & Ind., Republic Svc. Inc. Proj., 5.625%, 12/01/26 No Opt. Call   5,062,000
         

              6,105,911
           

      New Hampshire—4.0%        
AAA
  7,000   New Hampshire Bus. Fin. Auth., PCR, Pub. Svc. Co. Proj., Ser. C, 5.45%, 5/01/21, MBIA 05/12 @ 101   7,465,220
A+
  2,025   New Hampshire Hlth. & Ed. Facs. Auth., Exeter Hosp. Proj., 6.00%, 10/01/24 10/11 @ 101   2,098,103
         

              9,563,323
           

      New Jersey—12.1%        
      New Jersey Econ. Dev. Auth.,        
B
  4,065      Continental Airlines Inc. Proj., 7.00%, 11/15/30 11/10 @ 101   3,159,846
B
  6,750      Continental Airlines Inc. Proj., 7.20%, 11/15/30 11/10 @ 101   5,346,608
Baa3
  8,410      Kapkowski Road Landfill Proj., 5.50%, 4/01/16    No Opt. Call   8,431,530
BBB
  15,000   Tobacco Settlement Fin. Corp., 6.00%, 6/01/37 06/12 @ 100   12,184,650
         

              29,122,634
           

      New Mexico—1.0%        
NR
  2,315   Sandoval Cnty. Proj. Dev., Santa Ana Pueblo Proj., 7.75%, 7/01/15 No Opt. Call   2,314,120
         

      New York—1.0%        
BBB
  2,465   New York Cntys. Tobacco Trust III, Tobacco Settlement Rev., 5.00%, 6/01/27 06/13 @ 100   2,398,445
         

      North Carolina—1.8%        
A3
  4,000   Wake Cnty. Ind. Facs., PCR, Carolina Pwr. & Lt. Co. Proj., 5.375%, 2/01/17 02/12 @ 101   4,201,360
         

      Pennsylvania—6.7%        
      Philadelphia Auth. for Ind. Dev., Ser. B, FSA,      
AAA
  5,000      5.50%, 10/01/18   10/11 @ 101   5,370,800
AAA
  5,000  
   5.50%, 10/01/19
  10/11 @ 101   5,351,500
      West Cornwall Twnshp., Mun. Auth. Coll., Elizabethtown Coll. Proj.,      
BBB+
  2,500  
   5.90%, 12/15/18
  12/11 @ 100   2,636,775
BBB+
  2,650  
   6.00%, 12/15/22
  12/11 @ 100   2,774,364
           

              16,133,439
           

      South Carolina—3.6%        
NR
  3,497   Lancaster Cnty., Assmnt. Rev., Edgewater Impvt. Dist., Ser. B, 6.125%, 11/01/14 No Opt. Call   3,502,490
BBB
  5,000   South Carolina Jobs Econ. Dev. Auth., Hosp. Fac. Rev., Palmetto Hlth. Alliance,      
         Ser. A, 6.125%, 8/01/23   08/13 @ 100   5,090,000
           

              8,592,490
           

      South Dakota—4.3%        
BBB
  11,915   Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32 06/12 @ 101   10,340,552
         

      Tennessee—2.3%        
AAA
  12,000   Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/19, FSA 01/13 @ 71.667   5,416,200
         

      Texas—23.6%        
BBB
  2,000   Alliance Arpt. Auth. Inc., Fed. Express Corp. Proj., 6.375%, 4/01/21 04/06 @ 102   2,078,980
      Birdville Indpt. Sch. Dist., GO,        
AAA
  1,615      Zero Coupon, 2/15/18   No Opt. Call   812,910
AAA
  1,815      Zero Coupon, 2/15/19   No Opt. Call   856,354
AAA
  2,625      Zero Coupon, 2/15/20   No Opt. Call   1,158,701
AAA
  2,500      Zero Coupon, 2/15/21   No Opt. Call   1,033,725

See Notes to Financial Statements.

26


BlackRock Municipal 2018 Term Trust (BPK) (continued)

  Principal            
  Amount       Option Call    
Rating1 (000)   Description Provisions2 Value  








        Texas (continued)          
BBB
$ 12,625   Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 5.75%, 5/01/36
No Opt. Call
$ 13,421,511  
NR
  4,305   Dallas Cnty. Flood Control, 6.75%, 4/01/16   04/13 @ 100   4,311,070  
      Dallas Ft. Worth Intl. Arpt. Fac. Impvt., Ser. A, FGIC,          
AAA
  5,000      5.875%, 11/01/17   11/11 @ 100   5,360,050  
AAA
  5,000      5.875%, 11/01/18   11/11 @ 100   5,340,900  
      Texas Affordable Hsg. Corp., Multi-Fam. Hsg. Rev., Arborstone/Baybrook Oaks, Ser. A,        
Baa1
  12,695      5.55%, 11/01/18   11/11 @ 102   12,570,335  
Baa1
  9,800      5.75%, 11/01/22   11/11 @ 102   9,678,970  
           

 
              56,623,506  
           

 
      Washington—4.8%          
      Energy Northwest Wind Proj.,          
A-
  5,000      Ser. A, 6.00%, 7/01/23   01/07 @ 103   5,160,850  
A-
  6,175      Ser. B, 5.875%, 7/01/20   01/07 @ 103   6,405,698  
           

 
              11,566,548  
           

 
      Wisconsin—12.7%          
BBB
  17,585   Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32   06/12 @ 100   14,832,772  
      Wisconsin Hlth. & Edl. Facs. Auth.,          
A+
  5,000      Froedert & Cmnty. Hlth. Oblig., 5.375%, 10/01/21   10/11 @ 101   4,992,000  
A
  10,000      Wheaton Franciscan Svcs., 6.25%, 8/15/22   02/12 @ 101   10,602,900  
           

 
              30,427,672  
           

 
      Total Long-Term Investments (cost $374,610,862)       375,997,114  
           

 
 


           
 
Shares
             
 
(000)
             
 
           
        MONEY MARKET FUND—0.1%          
   
250
  AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $250,000)  
N/A
  250,000  
             

 
        Total Investments—156.9% (cost $374,860,862)       376,247,114  
        Other assets in excess of liabilities—0.5%       1,160,031  
        Preferred shares at redemption value, including dividends payable—(57.4)%     (137,630,461 )
           

 
        Net Assets Applicable to Common Shareholders—100%   $ 239,776,684  
           

 

 


1 Using the higher of S&P’s, Moody’s or Fitch’s rating.

2 Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.

3 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2004, the Trust held 8.0% of its net assets, with a current market value of $19,250,887, in securities restricted as to resale.

4 Security is deemed to be of investment grade quality by the investment advisor.

5 Entire or partial principal amount pledged as collateral for financial futures contracts.


KEY TO ABBREVIATIONS
ACA American Capital Access GO General Obligation
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FSA Financial Security Assurance      






See Notes to Financial Statements.

27


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Municipal 2020 Term Trust (BKK)

  Principal      
  Amount   Option Call  
Rating1
(000) Description Provisions2 Value






        LONG-TERM INVESTMENTS—163.1%      
        California—22.0%      
        California GO,      
A3
$ 12,000      5.00%, 11/01/22 11/13 @ 100 $ 12,028,560
A3
  12,500      5.125%, 11/01/23 11/13 @ 100   12,580,250
        Golden St. Tobacco Sec. Corp.,      
BBB
  3,000      Ser. A-1, 6.625%, 6/01/40 06/13 @ 100   2,640,840
BBB
  8,010      Ser. A-1, 6.75%, 6/01/39 06/13 @ 100   7,196,424
BBB
  975      Ser. A-3, 7.875%, 6/01/42 06/13 @ 100   991,419
BBB
  1,470      Ser. A-5, 7.875%, 6/01/42 06/13 @ 100   1,494,755
Baa1
  20,000      Ser. B, 5.375%, 6/01/28 06/10 @ 100   19,591,400
B-
  3,035   Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 12/12 @ 102   2,559,598
AAA
  6,865   Riverside Cnty., Riverside Cnty. Hosp. Proj., Zero Coupon, 6/01/25, MBIA No Opt. Call   2,086,273
           

              61,169,519
           

        Colorado—0.6%      
AAA
  4,500   E-470 Pub. Hwy Auth., Cap. Apprec., Ser. B, Zero Coupon, 9/01/22, MBIA No Opt. Call   1,689,885
         

      Connecticut—0.9%      
BBB-
  2,500   Mohegan Tribe Indians Gaming Auth., Pub. Impvt., 5.125%, 1/01/23 01/14 @ 100   2,397,325
           

        Delaware—3.6%      
        Charter Mac Equity Issuer Trust,      
A3
  1,000      Ser. A, 5.75%, 4/30/15 No Opt. Call   1,011,960
A3
  2,500      Ser. A, 6.00%, 4/30/19 No Opt. Call   2,536,575
Baa1
  4,000      Ser. B, 6.00%, 4/30/15 No Opt. Call   4,047,200
Baa1
  2,500      Ser. B, 6.30%, 4/30/19 No Opt. Call   2,535,850
           

              10,131,585
           

        District of Columbia—3.4%      
        Dist. of Columbia, Friendship Pub. Charter Sch. Inc., ACA,      
A
  3,320      5.00%, 6/01/23 06/14 @ 100   3,125,813
A
  2,680      5.75%, 6/01/18 06/14 @ 100   2,776,855
BBB
  4,215   Tobacco Settlement Fin. Corp., 6.50%, 5/15/33 No Opt. Call   3,609,389
           

              9,512,057
           

        Florida—20.0%      
NR
  4,860   Bellago Edl. Facs. Benefit Dist., Ser. A, 5.85%, 5/01/22 05/14 @ 100   4,826,077
Baa1
  1,500   Capital Trust Agy. Multi-Fam., American Opp., Ser. A, 5.75%, 6/01/23 06/13 @ 102   1,399,050
NR
  3,000   CFM Cmnty. Dev. Dist., Cap. Impvt., Ser. B, 5.875%, 5/01/14 No Opt. Call   2,994,420
      Concorde Estates Cmnty. Dev. Dist.,      
NR
  2,350      Ser. A, 5.85%, 5/01/35 05/14 @ 101   2,212,995
NR
  2,300      Ser. B, 5.00%, 5/01/11 No Opt. Call   2,231,943
NR
  4,445   Grand Hampton Cmnty. Dev. Dist., Cap. Impvt., 6.10%, 5/01/24 05/13 @ 101   4,393,082
NR
  4,140   Habitat Cmnty. Dev. Dist., 5.80%, 5/01/25 05/14 @ 101   3,941,694
BB
  5,475   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr., 6.75%, 11/15/21 11/14 @ 100   5,513,435
        Middle Village Cmnty. Dev. Dist.,      
NR
  4,690      Ser. A, 5.80%, 5/01/22 05/13 @ 100   4,626,544
NR
  2,750      Ser. B, 5.00%, 5/01/09 No Opt. Call   2,727,258
NR
  3,000   Sterling Hill Cmnty. Dev. Dist., Ser. B, 5.50%, 11/01/10 No Opt. Call   3,004,620
NR
  7,805   Stevens Plantation Cmnty. Dist., Spl. Assmt. Rev., Ser. B, 6.375%, 5/01/13 No Opt. Call   7,805,468
NR
  4,000   Village Cmnty. Dev. Dist. No. 5, Spl. Assmt. Rev., Ser. A, 6.00%, 5/01/22 05/13 @ 101   4,028,000
NR
  6,000   Westchester Cmnty. Dev. Dist. No. 1, Spl. Assmt., 6.00%, 5/01/23 05/13 @ 101   5,937,660
           

              55,642,246
           

        Georgia—4.8%      
BBB
  2,500   Milledgeville Baldwin Cnty. Dev. Auth., Georgia Coll. & St. Univ. Foundation, 5.50%, 9/01/24 . . 09/14 @ 101   2,446,200
BBB
  2,350   Richmond Cnty. Dev. Auth., Env. Impvt., 5.75%, 11/01/27 11/13 @ 100   2,253,556
AA
  8,620   Savannah Hosp. Auth., St. Joseph/Chandler Hlth. Sys., 5.25%, 7/01/23, RAA 01/14 @ 100   8,660,342
           

              13,360,098
           

        Illinois—12.1%      
NR
  2,155   Centerpoint Intermodal Ctr. Prog. Trust, Ser. A, 8.00%, 6/15/23 No Opt. Call   2,090,221
        Illinois Dev. Fin. Auth.,      
A-
  5,000      Depaul Univ., Ser. C, 5.25%, 10/01/24 10/14 @ 100   4,974,800
AAA
  14,000      Gas Supply Rev., Ser. E, 4.875%, 11/01/38, AMBAC 11/13 @ 101   13,692,000
AA+
  4,800   Illinois Edl. Fac. Auth., Northwestern Univ., 5.00%, 12/01/21 12/13 @ 100   4,883,952
AAA
  8,265   Lake Cnty. Cmnty. Con. Sch. Dist., No. 73 Hawthorn, Zero Coupon, 12/01/22, MBIA No Opt. Call   3,051,190

See Notes to Financial Statements.

28


BlackRock Municipal 2020 Term Trust (BKK) (continued)

Principal        
Amount     Option Call  
Rating1
(000) Description Provisions2 Value







      Illinois (continued)        
AAA
$
13,455
  Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj.,      
 
     Ser. A, Zero Coupon, 6/15/22, MBIA  
No Opt. Call
$ 5,092,852
 
       

 
          33,785,015
 
       

 
  Indiana—0.9%        
NR
 
2,710
  Vincennes Econ. Dev., Southwest Indiana Regl., 6.25%, 1/01/24 01/09 @ 102   2,532,468
 
     

 
  Kansas—1.0%        
AAA
 
6,440
  Wyandotte Cnty., Unified Gov’t. Spl. Oblig., Intl. Speedway, Zero Coupon, 12/01/20, MBIA No Opt. Call   2,774,030
 
     

 
  Kentucky—3.2%        
CCC
 
6,635
  Kenton Cnty. Arpt. Brd., Delta Airlines, 7.125%, 2/01/21 08/04 @ 100   4,876,327
BBB
 
3,750
  Maysville Sld. Wst. Disp., Inland Container Corp. Proj., 6.90%, 9/01/22 09/13 @ 102   3,894,112
 
     

 
          8,770,439
 
       

 
  Louisiana—0.7%        
BBB
 
2,000
  De Soto Parish, Env. Impvt. Rev., Ser. A, 5.85%, 11/01/27 11/13 @ 100   1,930,600
 
     

 
  Maryland—5.8%        
 
  Frederick Cnty., Urbana Cmnty. Dev. Auth.,      
NR
 
3,000
3    6.625%, 7/01/25   07/07 @ 102   3,101,070
NR
 
5,171
3    Ser. A, 5.80%, 7/01/20   07/07 @ 102   5,052,636
BBB
 
8,500
  Maryland Hlth. & Higher Edl. Facs. Auth., Medstar Hlth., 5.375%, 8/15/24 08/14 @ 100   8,062,335
 
     

 
          16,216,041
 
       

 
  Massachusetts—1.6%        
BBB
 
4,500
  Massachusetts Dev. Fin. Agcy., Sld. Wst. Disp. Rev., Wst. Mgmt. Inc. Proj.,      
 
     5.45%, 6/01/14   No Opt. Call   4,526,190
 
       

 
  Michigan—1.9%        
BB+
 
5,000
  Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 07/07 @ 101   5,161,750
 
       
 
  Mississippi—1.0%        
BBB
 
3,000
  Warren Cnty. Env. Impvt, Intl. Paper, Ser. A, 5.85%, 11/01/27 11/13 @ 100   2,895,900
 
     

 
  Missouri—1.8%        
BBB+
 
5,000
  Missouri Dev. Fin. Brd., Branson Landing Proj., Ser. A, 5.50%, 12/01/24 06/14 @ 100   4,981,300
 
     

 
  New Hampshire—1.8%        
BBB+
 
5,000
  New Hampshire Hlth., Elliot Hosp., Ser. B, 5.60%, 10/01/22 10/13 @ 100   4,997,750
 
     

 
  New Jersey—16.6%        
Baa1
 
1,000
  Middlesex Cnty. Impvt. Auth., Str. Student Hsg. Proj., Ser. A, 5.00%, 8/15/23 08/14 @ 100   980,650
 
  New Jersey Econ. Dev. Auth.,        
B
 
10,000
     Continental Airlines Inc. Proj., 7.00%, 11/15/30 11/10 @ 101   7,773,300
B
 
1,500
     Continental Airlines Inc. Proj., 9.00%, 6/01/33 06/13 @ 101   1,548,660
BBB-
 
1,000
     First Mtg. Winchester, Ser. A, 4.80%, 11/01/13 No Opt. Call   958,180
Baa3
 
7,500
     Kapkowski Road Landfill Proj., 6.50%, 4/01/31 No Opt. Call   8,111,325
Baa1
 
4,000
  New Jersey Hlth Care Fac. Fin. Auth., Cap. Hlth Sys. Oblig. Grp., Ser. A, 5.75%, 7/01/23 07/13 @ 100   4,043,160
 
  Tobacco Settlement Fin. Corp.,        
BBB
 
4,250
     6.75%, 6/01/39   06/13 @ 100   3,808,850
BBB
 
20,325
 
   7.00%, 6/01/41
  06/13 @ 100   18,818,714
 
       

 
          46,042,839
 
       

 
  New Mexico—1.0%        
NR
 
2,685
  Sandoval Cnty. Proj. Dev., Santa Ana Pueblo Proj., 7.75%, 7/01/15 No Opt. Call   2,683,980
 
     

 
  New York—10.5%        
BBB
 
3,360
  New York Cntys. Tobacco Trust III, Tobacco Settlement Rev., 5.00%, 6/01/27 06/13 @ 100   3,269,280
 
  Tobacco Settlement Fin. Corp.,        
AAA
 
10,000
     Ser. A-1, 5.25%, 6/01/22, AMBAC   06/13 @ 100   10,280,700
AA-
 
4,000
     Ser. C-1, 5.50%, 6/01/20   06/13 @ 100   4,198,680
AA-
 
7,000
4    Ser. C-1, 5.50%, 6/01/21   06/13 @ 100   7,332,150
AA-
 
4,000
     Ser. C-1, 5.50%, 6/01/22   06/13 @ 100   4,180,960
 
       

 
          29,261,770
 
       

 
  Ohio—6.9%        
 
  Cuyahoga Cnty., Cleveland Clinic Hlth. Sys.,      
A1
 
3,000
 
   6.00%, 1/01/19
  07/13 @ 100   3,214,230
A1
 
10,000
 
   6.00%, 1/01/20
  07/13 @ 100   10,691,700
BBB-
 
4,000
  Ohio Water Dev. Auth., Collateral Wtr. Dev. Dayton Pwr., Ser. A, 6.40%, 8/15/27 08/04 @ 101   4,020,400
NR
 
1,215
  Port of Greater Cincinnati Dev. Auth., Cooperative Pub. Parking Infrastructure Proj.,      
 
 
   6.30%, 2/15/24
  02/14 @ 102   1,165,634
 
       

 
          19,091,964
 
       

 
  Pennsylvania—6.1%        
A-
 
10,000
  Lancaster Cnty. Hosp. Auth., Gen. Hosp. Proj., 5.75%, 3/15/20 09/13 @ 100   10,298,200
BBB+
 
6,680
  Pennsylvania Higher Edl. Fac., La Salle Univ., 5.50%, 5/01/26 05/13 @ 100   6,554,483
 
     

 
          16,852,683
 
       

See Notes to Financial Statements.

29


BlackRock Municipal 2020 Term Trust (BKK) (continued)

  Principal            
  Amount       Option Call    
Rating1 (000)   Description Provisions2 Value  








        Rhode Island—1.6%          
BBB
$ 4,500   Hlth. & Edl. Bldg. Corp., Hosp. Fin., Ser. A, 5.875%, 9/15/23 09/08 @ 100 $ 4,369,725  
         

 
      Texas—8.4%          
BBB
  1,100   Brazos River Auth., PCR, TXU Energy Co. LLC Proj., Ser. A, 6.75%, 4/01/38 No Opt. Call   1,218,074  
BBB
  3,500   Port Corpus Christi Indl. Dev. Corp., Valero Convertible, Ser. C, 5.40%, 4/01/18 04/08 @ 102   3,525,270  
Baa1
  5,000   Texas Affordable Hsg. Corp., Multi-Fam. Hsg. Rev., Arborstone/Baybrook Oaks,        
           Ser. A, 5.85%, 11/01/31   11/11 @ 102   4,811,150  
        Texas St. Tpke. Auth., Central Texas Tpke. Sys., Ser. A, AMBAC,        
AAA
  7,990      Zero Coupon, 8/15/21   No Opt. Call   3,190,327  
AAA
  18,450      Zero Coupon, 8/15/24   No Opt. Call   5,982,782  
      Weatherford Indpt. Sch. Dist.,          
AAA
  6,945      Zero Coupon, 2/15/23   02/11 @ 50.236   2,419,569  
AAA
  6,945      Zero Coupon, 2/15/24   02/11 @ 47.435   2,273,862  
           

 
              23,421,034  
           

 
      Virginia—8.0%          
NR
  5,000   Celebrate North Cmnty. Dev. Auth., Spl. Assmt. Rev., Ser. B, 6.60%, 3/01/25 03/14 @ 102   4,936,950  
BBB
  10,000   Charles City Cnty. Econ. Dev. Auth., Sld. Wst. Disp., 5.125%, 8/01/27 No Opt. Call   9,789,100  
BBB-
  7,500   Mecklenburg Cnty Ind. Dev. Auth., Exempt FAC-UAE LP Proj, 6.50%, 10/15/17 10/12 @ 100   7,537,500  
         

 
              22,263,550  
           

 
      Washington—2.4%          
      Washington,          
AAA
  10,000      Ser. S-5, Zero Coupon, 1/01/19, FGIC   No Opt. Call   4,774,900  
AAA
  4,630      Motor Vehicle, Ser. F, Zero Coupon, 12/01/21, MBIA No Opt. Call   1,850,981  
         

 
              6,625,881  
           

 
      Wisconsin—2.2%          
      Hlth. & Ed. Fac. Auth., Wheaton Franciscan Svcs.,        
A
  2,880      5.50%, 8/15/17   08/13 @ 100   2,964,211  
A
  3,190  
   5.50%, 8/15/18
  08/13 @ 100   3,269,208  
             

 
                6,233,419  
             

 
        Puerto Rico—12.3%          
        Puerto Rico Comnwlth., Pub. Impvt., Ser. A,        
A-   5,000  
   5.25%, 7/01/22
  07/13 @ 100   5,097,800  
A-   11,000  
   5.25%, 7/01/23
  07/13 @ 100   11,159,390  
A-   7,000  
   5.25%, 7/01/24
  07/13 @ 100   7,066,150  
A-   10,900   Puerto Rico Elec. Pwr. Auth., Ser. NN, 5.125%, 7/01/24 07/13 @ 100   10,944,799  
           

 
                34,268,139  
             

 
        Total Long-Term Investments (cost $462,622,605)     453,589,182  
           

 
 


           
 
Shares
           
 
(000)
           
 


           
        MONEY MARKET FUND—3.1%        
    8,550   AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $8,550,000) N/A   8,550,000  
           

 
        Total Investments—166.2% (cost $471,172,605)     462,139,182  
        Liabilities in excess of other assets—(2.3)%     (6,524,538 )
        Preferred shares at redemption value, including dividends payable—(63.9)%     (177,624,482 )
           

 
        Net Assets Applicable to Common Shareholders—100%   $ 277,990,162  
           

 

 


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 deemed to be of investment grade quality by the investment advisor.

4 Entire or partial principal amount pledged as collateral for financial futures contracts.


KEY TO ABBREVIATIONS
ACA American Capital Access MBIA Municipal Bond Insurance Association
AMBAC American Municipal Bond Assurance Corporation PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company RAA Radian Asset Assurance
GO General Obligation      

See Notes to Financial Statements.

30


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Municipal Target Term Trust (BMN)

  Principal          
  Amount     Option Call    
   Rating1 (000)   Description Provisions2 Value  






 
        LONG-TERM INVESTMENTS—145.5%        
      Alabama—3.4%        
AAA
$
9,450
  Alabama Fed. Hwy. Fin. Auth., Grant Antic., Ser. A, 4.125%, 3/01/07, MBIA
No Opt. Call
$ 9,826,677  
AAA
 
5,000
  Jefferson Cnty., Capital Impvt., GO, Ser. A, 5.00%, 4/01/07, MBIA
No Opt. Call
  5,313,400  
AAA
 
1,000
  Mobile, GO, 4.00%, 2/15/07, AMBAC
No Opt. Call
  1,036,090  
 
   
 
 
 
   
  16,176,167  
 
   
 
 
 
  Alaska—2.4%
     
 
  Anchorage, GO,
     
AAA
 
1,750
     Ser. A, 4.125%, 6/01/06, FGIC
No Opt. Call
  1,811,740  
AAA
 
2,245
     Ser. A, 4.25%, 6/01/07, FGIC
No Opt. Call
  2,347,237  
AAA
 
1,335
     Ser. B, 3.20%, 7/01/07, MBIA
No Opt. Call
  1,353,637  
AAA
 
5,000
     Ser. B, 3.25%, 7/01/07, MBIA
No Opt. Call
  5,076,950  
AAA
 
1,000
     Ser. B, 4.25%, 7/01/07, FGIC
No Opt. Call
  1,043,890  
 
   
 
 
 
   
  11,633,454  
 
   
 
 
 
  Arizona—2.4%
     
AAA
 
5,000
  Arizona Trans. Brd., Grant Antic., 4.125%, 1/01/07, MBIA
No Opt. Call
  5,192,200  
AAA
 
6,255
  Maricopa Cnty. Pub. Fin. Corp., Lease Rev., 4.25%, 7/01/07, AMBAC
No Opt. Call
  6,536,850  
 
   
 
 
 
   
  11,729,050  
 
   
 
 
 
  Arkansas—1.1%        
AAA
 
5,000
  Univ. of Arkansas, Athl. Fac. Rev., Razorback Stadium Proj., 3.55%, 12/01/21, FSA
12/06 @ 100
  5,145,200  
 
   
 
 
 
  California—7.8%
     
AAA
 
6,000
  California, GO, 6.30%, 9/01/06, AMBAC
No Opt. Call
  6,522,180  
AAA
 
30,000
  California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 3.50%, 5/01/07, MBIA No Opt. Call   30,860,700  
 
       
 
 
        37,382,880  
 
       
 
 
  Colorado—8.8%        
AAA
 
17,150
  Denver City & Cnty., GO, Ser. B, 5.625%, 8/01/07, MBIA No Opt. Call   18,633,646  
AAA
 
1,015
  El Paso Cnty., COP, Detention Fac. Proj., Ser. B, 2.50%, 12/01/06, AMBAC No Opt. Call   1,020,887  
AAA
 
9,700
  Met. Football Stad. Dist., Sales Tax Rev., Ser. A, Zero Coupon, 1/01/07, MBIA No Opt. Call   9,021,097  
 
  Regl. Transp. Dist., COP, Transp. Vehicle Proj., Ser. A, MBIA        
AAA
 
6,215
 
   5.00%, 6/01/06
No Opt. Call   6,532,649  
AAA
 
5,470
 
   5.00%, 6/01/07
No Opt. Call   5,839,389  
AAA
 
1,100
  Thornton, COP, 2.50%, 12/01/06, AMBAC No Opt. Call   1,106,380  
 
       
 
 
        42,154,048  
 
       
 
 
  Delaware—0.2%        
AAA
 
1,050
  Delaware River & Bay Auth., 2.50%, 1/01/07, MBIA No Opt. Call   1,049,748  
 
       
 
 
  Florida—2.2%        
 
  Delray Beach, FSA,        
AAA
 
1,255
     Decade of Excellence Prog., GO, 3.50%, 2/01/07 No Opt. Call   1,284,455  
AAA
 
1,740
     Utils. Tax, 3.50%, 6/01/07 No Opt. Call   1,785,936  
AAA
 
1,645
  Florida Mun. Loan Council, Ser. A, 4.00%, 5/01/07, MBIA No Opt. Call   1,709,451  
AAA
 
1,765
  Orange Cnty. Tourist Dev., Tax Rev., Ser. A, 6.375%, 10/01/06, AMBAC ETM   1,781,732  
AAA
 
2,000
  Sarasota Wtr. & Swr. Sys., 4.25%, 10/01/06, MBIA No Opt. Call   2,086,700  
AAA
 
1,865
  Tampa Wtr. & Swr., 5.50%, 10/01/06, FSA No Opt. Call   1,996,389  
 
       
 
 
        10,644,663  
 
       
 
 
  Georgia—1.0%        
AAA
 
4,805
  Columbus Wtr. & Swr., 4.00%, 5/01/07, FSA No Opt. Call   4,990,569  
 
       
 
 
  Hawaii—4.8%        
 
  Hawaii, GO,        
AAA
 
5,675
     Ser. CP, 5.50%, 10/01/06, FGIC No Opt. Call   6,065,837  
AAA
 
9,000
     Ser. CS, 5.25%, 4/01/06, MBIA No Opt. Call   9,472,680  
AAA
 
1,265
     Ser. CW, 3.60%, 8/01/06, FGIC No Opt. Call   1,297,523  
 
  Honolulu City & Cnty., GO, Ser. A,        
AAA
 
2,275
     4.00%, 9/01/06, FSA No Opt. Call   2,354,762  
AAA
 
3,500
     5.80%, 1/01/07, FGIC No Opt. Call   3,775,835  
 
       
 
 
        22,966,637  
 
       
 

See Notes to Financial Statements.

31


BlackRock Municipal Target Term Trust (BMN) (continued)

  Principal            
  Amount       Option Call    
   Rating1 (000)   Description Provisions2 Value  







 
        Illinois—17.4%          
      Champaign Cnty. Cmnty. Unit Sch. Dist., No. 116, Ser. C, FGIC,        
AAA
$ 1,065      Zero Coupon, 1/01/07  
No Opt. Call
$
989,971  
AAA
  2,760      Zero Coupon, 1/01/08  
No Opt. Call
  2,457,311  
AAA
  12,000   Chicago, GO, Ser. A, 4.25%, 1/01/07, MBIA
No Opt. Call
  12,482,520  
AAA
  2,665   Chicago Park Dist., Parking Rev., GO, Ser. A, 3.00%, 1/01/07, FGIC
No Opt. Call
  2,692,423  
AAA
  1,565   Chicago Wstwtr. Trans., Ser. A, 3.50%, 1/01/07, AMBAC
No Opt. Call
  1,599,837  
AAA
  7,220   Cook Cnty. Cmnty. Sch. Dist., Zero Coupon, 12/01/07, FGIC
No Opt. Call
  6,480,672  
      Du Page Cnty., Trans. Rev., FSA,  
     
AAA
  4,815      4.50%, 1/01/07  
No Opt. Call
  5,037,405  
AAA
  5,390  
   4.50%, 1/01/09
 
No Opt. Call
  5,666,992  
      Illinois, GO, Ser. I,  
     
AAA
  15,080      3.25%, 11/01/06, FGIC  
No Opt. Call
  15,391,100  
AAA
  4,000      4.00%, 4/01/07, FSA  
No Opt. Call
  4,152,240  
AAA
  12,625      4.25%, 4/01/07, MBIA  
No Opt. Call
  13,188,328  
      Illinois Sales Tax, Ser. O,  
     
AAA
  5,900      Zero Coupon, 6/15/07  
No Opt. Call
  5,387,998  
AAA
  5,635      Zero Coupon, 6/15/08  
No Opt. Call
  4,922,341  
AAA
  1,000   Kane Cnty., GO, 3.75%, 1/01/07, FGIC  
No Opt. Call
  1,028,240  
AAA
  2,000   Will Cnty. Cmnty. Sch. Dist., 7.05%, 12/01/08, AMBAC
No Opt. Call
  2,323,800  
           
 
              83,801,178  
             
 
      Indiana—2.8%  
     
AAA
  5,000   Indiana Bond Bank, Sch. Fund, 4.00%, 2/01/07, AMBAC
No Opt. Call
  5,175,350  
AAA
  9,000   Indiana Univ., Student Fee Rev., Zero Coupon, 8/01/06, AMBAC
No Opt. Call
  8,505,450  
       
 
 
         
  13,680,800  
         
 
 
      Iowa—0.8%  
     
AAA
  3,940   West Des Moines Cmnty. Sch. Dist., 4.00%, 6/01/07, AMBAC
No Opt. Call
  4,094,290  
       
 
 
      Kentucky—4.0%  
     
AAA
  12,610   Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/07, MBIA
No Opt. Call
  11,342,695  
      Kentucky Ppty. & Bldgs. Auth., Proj. No. 69, FSA,
     
AAA
  2,035      Ser. B, 4.00%, 8/01/06  
No Opt. Call
  2,105,757  
AAA
  5,560      Ser. C, 4.00%, 8/01/06  
No Opt. Call
  5,753,321  
         
 
 
         
  19,201,773  
         
 
 
      Louisiana—4.4%  
     
AAA
  3,555   Louisiana Off. Facs. Corp. Lease, Cap. Complex Prog., 4.00%, 5/01/07, AMBAC
No Opt. Call
  3,687,388  
AAA
  4,565   Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. A, 3.00%, 5/15/07, MBIA
No Opt. Call
  4,599,831  
AAA
  7,630 3 MuniMae Trust, Ser. 7, Cl. A, 4.40%, 12/16/08
N/A
  7,719,882  
AAA
  5,250   New Orleans, GO, Zero Coupon, 9/01/06, AMBAC
No Opt. Call
  4,954,425  
       
 
 
         
  20,961,526  
           
 
 
        Massachusetts—2.7%  
     
AAA
  11,760   Massachusetts, GO, Ser. A, 5.25%, 1/01/09, FSA
No Opt. Call
  12,801,701  
       
 
 
      Michigan—3.8%  
     
AAA
  1,270   Detroit, GO, 3.00%, 4/01/07, MBIA  
No Opt. Call
  1,282,967  
AAA
  2,100   Grand Rapids Wtr. Sply., 4.00%, 1/01/07, FGIC
No Opt. Call
  2,169,825  
      Michigan Mun. Bd. Auth.,  
     
AAA
  5,000      Zero Coupon, 5/15/06, MBIA  
No Opt. Call
  4,784,950  
AAA
  1,165 3    Ser. G, 6.35%, 11/01/04, AMBAC  
N/A
  1,207,254  
AAA
  675      Ser. G, 6.35%, 11/01/06, AMBAC   11/04 @ 102   698,922  
      Michigan Pub. Pwr. Agcy., Belle River Proj., Ser. A, MBIA,        
AAA
  1,000  
   2.70%, 1/01/07
  No Opt. Call   1,002,150  
AAA
  2,000  
   5.00%, 1/01/07
  No Opt. Call   2,114,340  
AAA
  4,850   Michigan Trunk Line, Ser. A, 4.00%, 11/01/06, FSA No Opt. Call   5,028,383  
           
 
              18,288,791  
               
 
        Minnesota—2.1%          
AAA
  5,075   Met. Council Minneapolis-St. Paul, GO, 5.25%, 12/01/06 No Opt. Call   5,415,532  
      Minneapolis Spec. Sch. Dist. No. 1, COP, FSA,        
AAA
  1,150      Ser. A, 3.00%, 2/01/07   No Opt. Call   1,162,489  
AAA
  840      Ser. B, 3.25%, 2/01/07   No Opt. Call   854,314  
AAA
  2,465   Minnesota Hsg. Fin. Auth., Ser. D, 5.35%, 8/01/06, MBIA 02/05 @ 102   2,537,052  
           
 
              9,969,387  
             
 
      Mississippi—0.4%          
AAA
  1,935   Vicksburg, GO, 4.00%, 4/01/07, MBIA   No Opt. Call   2,002,919  
             
 

See Notes to Financial Statements.

32


BlackRock Municipal Target Term Trust (BMN) (continued)

  Principal            
  Amount       Option Call    
   Rating1 (000)   Description Provisions2 Value  







 
        Nebraska—0.8%          
AAA
$ 3,850   Douglas Cnty. Sch. Dist. No. 17 Millard, GO, 3.20%, 11/15/06, FSA
No Opt. Call
$
3,923,689  
       


 
      Nevada—1.5%  
     
AAA
  2,975   Clark Cnty., Library Dist., GO, 4.00%, 2/01/07, FGIC
No Opt. Call
  3,077,072  
AAA
  2,005   Las Vegas, GO, Pub. Safety Bonds, 4.00%, 4/01/07, FSA
No Opt. Call
  2,078,062  
      Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC,
     
AAA
  800      Zero Coupon, 1/01/07  
No Opt. Call
  742,192  
AAA
  1,295      Zero Coupon, 1/01/08  
No Opt. Call
  1,152,589  
             
 
              7,049,915  
             
 
      New Jersey—3.6%          
AAA
  140   Elizabeth, GO, 6.60%, 8/01/06, MBIA   08/04 @ 100   140,524  
AAA
  1,000   Monmouth Cnty. Impvt. Auth., Gov’t. Loan, 2.34%, 12/01/06, FSA No Opt. Call   1,002,320  
AAA
  8,565   New Jersey Hwy. Auth., Garden St. Pkwy., 5.00%, 1/01/07, FGIC ETM   9,097,143  
AAA
  5,000   New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 5.125%, 6/15/07, AMBAC 06/05 @ 102   5,249,400  
AAA
  730   No. Jersey Dist. Wtr. Sply., Wanaque So. Proj., 6.50%, 7/01/06, MBIA ETM   758,755  
AAA
  1,250   Warren Cnty. Fin. Auth., PCR, 6.55%, 12/01/06, MBIA 12/04 @ 100   1,275,225  
           
 
              17,523,367  
             
 
      New Mexico—1.2%          
AAA
  3,535   Gallup, PCR, Plains Elec. Generation, 6.50%, 8/15/07, MBIA 08/04 @ 101   3,555,362  
AAA
  2,345   New Mexico Fin. Auth., Pub. Proj., Ser. A, 3.50%, 6/01/07, MBIA No Opt. Call   2,399,638  
             
 
                5,955,000  
               
 
        New York—10.6%          
AAA
  1,040   Malone Ctrl. Sch. Dist., GO, Ser. B, 2.875%, 1/15/07, FGIC No Opt. Call   1,048,715  
AAA
  2,800   Nassau Cnty., GO, Ser. Y, 5.00%, 3/01/06, FGIC No Opt. Call   2,934,428  
      New York City, GO,          
AAA
  13,000      Ser. A, 7.00%, 8/01/07, FSA   08/06 @ 101.5   14,293,500  
AAA
  10,000      Ser. E, 6.125%, 8/01/06, MBIA   No Opt. Call   10,755,900  
AAA
  2,000   New York City Hlth. & Hosp. Corp., Hlth. Sys. Svcs., Ser. A, 3.20%, 2/15/07, FSA No Opt. Call   2,026,500  
AAA
  2,460   New York Dorm. Auth., Hosp. Rev., 3.00%, 2/15/07, XLCA No Opt. Call   2,480,270  
      New York Env. Fac. Corp., PCR, Ser. D,          
AAA
  1,910 3    6.40%, 11/15/04   N/A   1,983,401  
AAA
  1,780 3    6.40%, 11/15/04   N/A   1,848,406  
AAA
  810      6.40%, 5/15/06   11/04 @ 102   840,375  
AAA
  9,220   New York Hsg. Fin. Agcy., Hsg. Proj. Mtg., Ser. A, 5.50%, 11/01/06, FSA 05/06 @ 102   9,624,758  
      Rochester, Ser. B, MBIA,          
AAA
  1,805      4.00%, 2/15/07   ETM   1,879,420  
AAA
  1,465      4.00%, 2/15/07   No Opt. Call   1,517,491  
             
 
              51,233,164  
             
 
      North Carolina—1.3%          
AAA
  6,000   No. Carolina Eastn. Mun. Pwr. Agcy., Sys. Rev., Ser. B, 6.00%, 1/01/06, CAPMAC No Opt. Call   6,346,020  
           
 
      Ohio—5.3%          
AAA
  1,000   Amer. Muni. Pwr. Inc., Omega JU2 Proj., 4.00%, 1/01/07, AMBAC No Opt. Call   1,033,250  
AAA
  2,170   Cincinnati City Sch. Dist., GO, Sch. Impvt., 4.00%, 12/01/06, MBIA No Opt. Call   2,252,612  
AAA
  1,285   Milford Sch. Dist., GO, Sch. Impvt., 3.25%, 12/01/06, FSA No Opt. Call   1,311,548  
      Ohio Bldg. Auth., Ser. A, FSA,          
AAA
  4,585      Admin. Bldg. Fd., 5.00%, 10/01/06   No Opt. Call   4,846,987  
AAA
  10,000      Correction Facs., 5.00%, 10/01/06   No Opt. Call   10,571,400  
AAA
  5,400   Ohio Wtr. Dev. Auth., Pure Wtr., 3.00%, 6/01/07, AMBAC No Opt. Call   5,450,868  
           
 
              25,466,665  
             
 
      Oklahoma—1.5%          
AAA
  6,660   Oklahoma Trans. Auth., Tpke. Sys. Rev., Ser. B, 5.00%, 1/01/07, AMBAC No Opt. Call   7,049,011  
           
 
      Oregon—1.3%          
AAA
  2,020   Oregon Dept. of Admin. Svcs., COP, Ser. A, 5.00%, 11/01/06, FSA No Opt. Call   2,141,968  
AAA
  2,065   Portland Swr. Sys., Ser. A, 5.00%, 6/01/07, FSA No Opt. Call   2,202,054  
AAA
  2,000   Washington & Clackamas Cntys. Sch. Dist., GO, 3.125%, 6/15/07, MBIA No Opt. Call   2,028,960  
           
 
              6,372,982  
             
 
      Pennsylvania—5.0%          
AAA
  1,500   Delaware Cnty. Regl. Wtr. Qual. Ctrl. Auth., Swr. Rev., 4.00%, 5/01/07, FGIC No Opt. Call   1,554,210  
AAA
  1,345   Fleetwood Area Sch. Dist., GO, 4.00%, 4/01/07, FGIC No Opt. Call   1,394,012  
AAA
  1,615   Oxford Area Sch. Dist., GO, Ser. A, 4.00%, 2/15/07, FGIC No Opt. Call   1,671,218  
AAA
  1,900   Pennsylvania Dept. of Gen. Svcs., COP, 4.25%, 5/01/06, FSA No Opt. Call   1,967,659  
AAA
  2,375   Pennsylvania Tpke. Comm., Ser. T, 4.125%, 12/01/06, FGIC No Opt. Call   2,472,327  

See Notes to Financial Statements.

33


BlackRock Municipal Target Term Trust (BMN) (continued)

  Principal            
  Amount       Option Call    
   Rating1 (000)   Description Provisions2 Value  







 
        Pennsylvania (continued)          
        Philadelphia, GO, FSA,          
AAA
$
1,000      4.00%, 9/15/06  
No Opt. Call
$
1,035,890  
AAA
  3,100      4.05%, 9/15/07  
No Opt. Call
  3,226,108  
AAA
  2,950   Philadelphia Wtr. & Wst., 5.50%, 6/15/06, MBIA
No Opt. Call
  3,136,912  
AAA
  3,620   Pittsburgh Pub. Parking Auth., Parking Rev., 2.75%, 12/01/06, AMBAC
No Opt. Call
  3,652,761  
      Pocono Mtn. Sch. Dist., GO, FSA,  
     
AAA
  875      4.50%, 4/01/07  
No Opt. Call
  918,365  
AAA
  3,025      4.50%, 10/01/07  
No Opt. Call
  3,186,777  
         
 
 
         
  24,216,239  
         
 
 
      Rhode Island—1.1%  
     
AAA
  1,865   Providence, GO, Ser. C, 3.75%, 1/15/07, FGIC
No Opt. Call
  1,916,623  
AAA
  3,400   Rhode Island & Providence Plantations, GO, Ser. A, 4.00%, 12/01/06, FSA
No Opt. Call
  3,529,438  
       
 
 
         
  5,446,061  
         
 
 
      South Carolina—0.8%  
     
AAA
  1,715   Lexington Cnty. Sch. Dist. No. 1, COP, 3.00%, 3/01/07, AMBAC
No Opt. Call
  1,734,208  
AAA
  2,070   Pickens Cnty. Sch. Dist., GO, Ser. B, 2.25%, 3/01/07, FGIC
No Opt. Call
  2,045,657  
       
 
 
         
  3,779,865  
         
 
 
      Texas—16.2%  
     
AAA
  6,575   Austin Wtr. & Wstwtr. Sys., Ser. C, 3.75%, 11/15/06, FSA
No Opt. Call
  6,775,669  
AAA
  2,400   Corpus Christi, Gen. Impvt., GO, Ser. A, 5.00%, 3/01/07, FSA
No Opt. Call
  2,544,120  
AAA
  1,095   Corpus Christi Bus. & Job Dev., Corp. Sales Tax Rev., 4.00%, 3/01/07, AMBAC
No Opt. Call
  1,132,318  
AAA
  8,500   Cypress-Fairbanks Indpt. Sch. Dist., GO, Zero Coupon, 8/01/06, AMBAC
No Opt. Call
  8,065,735  
AAA
  6,355   Dallas Rapid Transit, 3.70%, 12/01/06, AMBAC
No Opt. Call
  6,545,142  
AAA
  1,305   Dallas Wtr. Wks. & Swr. Sys., 3.00%, 4/01/07, FSA
No Opt. Call
  1,316,601  
AAA
  2,280   Denton Util. Sys., Mult. Util. Impvt., 4.25%, 12/01/06, AMBAC
No Opt. Call
  2,377,333  
AAA
  3,445   El Paso Cnty., GO, 4.00%, 2/15/07, FSA  
No Opt. Call
  3,562,268  
AAA
  1,000   Houston Area Wtr. Corp., Northeast Wtr. Purification Proj., 4.00%, 3/01/07, FGIC
No Opt. Call
  1,034,080  
AAA
  6,285 3 MuniMae Trust, Ser. 10, Cl. A, 4.40%, 7/25/08
N/A
  6,359,037  
AAA
  2,915   Odessa Texas Wtr. & Swr., 4.25%, 4/01/07, FSA
No Opt. Call
  3,036,439  
      Round Rock Indpt. Sch. Dist., GO, Ser. A,
     
AAA
  2,465      4.25%, 8/01/06  
No Opt. Call
  2,560,543  
AAA
  1,000      4.25%, 8/01/07  
No Opt. Call
  1,044,150  
AAA
  8,115   San Antonio Elec. & Gas, Ser. B, Zero Coupon, 2/01/08, FGIC
ETM
  7,253,268  
AAA
  1,000   Sugar Land, GO, 2.50%, 2/15/07, FGIC  
No Opt. Call
  996,480  
AAA
  5,000   Tarrant Regl. Wtr. Dist., Impvt., 3.00%, 3/01/07, FSA
No Opt. Call
  5,043,150  
AAA
  15,000   Texas Mun. Pwr. Agcy., Zero Coupon, 9/01/06, AMBAC
No Opt. Call
  14,194,650  
AAA
  1,000   Texas Pub. Fin. Auth., 3.00%, 2/01/07, FGIC
No Opt. Call
  1,008,380  
AAA
  3,000   Texas Tech. Univ., Ser. 6, 4.25%, 2/15/07, AMBAC
No Opt. Call
  3,119,370  
       
 
 
         
  77,968,733  
           
 
 
        Utah—5.7%  
     
        Utah, GO, Ser. B,  
     
AAA
  5,950      4.50%, 7/01/06  
No Opt. Call
  6,222,808  
AAA
  20,000      4.50%, 7/01/07  
No Opt. Call
  21,114,400  
         
 
 
         
  27,337,208  
         
 
 
      Washington—9.7%  
     
AAA
  1,325   Benton Cnty. Pub. Util. Dist., Elec. Rev., 3.75%, 11/01/06, FSA
No Opt. Call
  1,364,790  
AAA
  3,000   Clark Cnty. Pub. Util., Dist. No. 1, Elec. Rev., 4.00%, 1/01/07, AMBAC
No Opt. Call
  3,096,090  
      King Cnty.,  
     
AAA
  2,090      GO, 3.50%, 12/01/06, MBIA  
No Opt. Call
  2,142,835  
AAA
  3,085      Swr. Rev., 3.50%, 1/01/07, FGIC  
No Opt. Call
  3,146,947  
AAA
  2,100   Kitsap Cnty., GO, Ser. B, 4.00%, 12/01/06, AMBAC
No Opt. Call
  2,177,448  
      Seattle, GO, Ser. E, MBIA,  
     
AAA
  1,700      Zero Coupon, 12/15/07  
No Opt. Call
  1,523,013  
AAA
  1,345      Zero Coupon, 12/15/08  
No Opt. Call
  1,150,715  
      Snohomish Cnty. Pub. Util. Dist., Elec. Rev.,
     
AAA
  5,620      4.125%, 12/01/06, FSA  
No Opt. Call
  5,843,620  
AAA
  1,250      6.55%, 1/01/07, FGIC  
ETM
  1,276,687  
AAA
  3,890   Tacoma Elec. Sys., Ser. A, 4.00%, 1/01/07, FSA
No Opt. Call
  4,014,597  
AAA
  3,360   Thurston Cnty. Sch. Dist. No. 3, GO, 4.25%, 12/01/06, FSA
No Opt. Call
  3,503,438  
AAA
  5,000   Washington, GO, Ser. B, 5.00%, 1/01/08, MBIA
No Opt. Call
  5,344,050  
AAA
  12,875   Washington Pub. Pwr. Sply., Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/06, MBIA
No Opt. Call
  12,267,171  
       
 
 
         
  46,851,401  
         
 
 

See Notes to Financial Statements.

34


BlackRock Municipal Target Term Trust (BMN) (continued)

    Principal            
    Amount       Option Call    
      Rating1   (000)   Description Provisions2 Value  








 
          West Virginia—1.7%          
AAA
 
$
5,300   West Virginia, GO, 4.00%, 6/01/06, FSA  
No Opt. Call
$ 5,482,744  
          West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., MBIA,
     
AAA
    1,000      Ser. B, 4.00%, 6/01/06  
No Opt. Call
  1,033,540  
AAA
    1,500      Ser. A, 4.00%, 6/01/07  
No Opt. Call
  1,553,640  
           
 
 
           
  8,069,924  
           
 
 
        Wisconsin—5.7%  
     
AAA
    1,380   Appleton Wtr. Wks., Ser. B, 4.00%, 1/01/07, FGIC
No Opt. Call
  1,424,202  
AAA
    5,000   Kenosha, GO, Ser. B, Zero Coupon, 10/15/08, FSA
No Opt. Call
  4,340,850  
AAA
    1,275   Milwaukee, GO, Ser. W, 4.00%, 3/15/07, FSA
No Opt. Call
  1,319,051  
        Wisconsin,  
     
AAA
    880      COP, Ser. A, 3.75%, 3/01/07, FSA  
No Opt. Call
  904,385  
AAA
    12,780      COP, Ser. A, 3.75%, 9/01/07, FSA  
No Opt. Call
  13,159,183  
AAA
    6,085      GO, Ser. G, 4.00%, 5/01/07, MBIA  
No Opt. Call
  6,321,706  
           
 
 
             
  27,469,377  
             
 
 
          Total Long-Term Investments (cost $673,954,159)
  700,733,402  
           
 
 
          SHORT-TERM INVESTMENTS—15.3%        
          Florida—0.1%          
      F1+     200 4 Orange Cnty. Sch. Brd., COP, Ser. B, 1.06%, 7/01/04, AMBAC, FRDD
N/A
  200,000  
           
 
 
          Georgia—3.1%  
     
      F1+     4,540 4 De Kalb County Hsg. Auth., 4.50%, 7/01/04, FRWD
N/A
  4,540,000  
      A1+     10,345 4 Mun. Elec. Auth., Proj. One, Ser. C, 1.04%, 7/07/04, MBIA, FRWD
N/A
  10,345,000  
           
 
 
             
  14,885,000  
             
 
 
          Massachusetts—2.3%  
     
      A1+     11,200 4 Massachusetts Dev. Fin. Agcy., Boston Univ., Ser. R-2, 1.07%, 7/01/04, XLCA, FRDD
N/A
  11,200,000  
           
 
 
          New Jersey—2.5%  
     
      A1+     11,890 4 New Jersey Sports & Exposition Auth., Ser. B-2, 1.05%, 7/07/04, MBIA, FRWD
N/A
  11,890,000  
           
 
 
          North Carolina—1.0%  
     
      A1+     5,000 4 North Carolina, GO, Ser. B, 1.05%, 7/07/04, FRWD
N/A
  5,000,000  
           
 
 
          Ohio—1.2%  
     
VMIG1
    5,845 4 Hamilton Elec. Rev., Ser. B, 1.08%, 7/01/04, FSA, FRWD
N/A
  5,845,000  
               
 
          Texas—0.7%          
A1+
    3,465 4 Brownsville Util. Sys., Ser. A, 1.04%, 7/07/04, MBIA, FRWD
N/A
  3,465,000  
           
 
 
          Puerto Rico—0.5%  
     
         A1     2,500 4 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Transp. Rev.,
     
             Ser. A, 1.00%, 7/07/04, AMBAC, FRWD
N/A
  2,500,000  
           
 
 

See Notes to Financial Statements.

35


BlackRock Municipal Target Term Trust (BMN) (continued)

  Shares        
  (000) Description Value  




 
    Money Market Fund—3.9%      
 
18,800
AIM Tax Free Investment. Co. Cash Reserve Portfolio $ 18,800,000  
     

 
    Total Short-Term Investments (cost $73,785,000)   73,785,000  
     

 
    Total Investments—160.8% (cost $747,739,159)   774,518,402  
    Other assets in excess of liabilities—1.3%   6,234,687  
    Preferred shares at redemption value, including dividends payable—(62.1)%   (299,194,700 )
     

 
    Net Assets Applicable to Common Shareholders—100% $ 481,558,389  
     

 

 


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. Rate shown as of June 30, 2004.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation FRWD — Floating Rate Weekly Demand
CAPMAC Capital Markets Assurance Company FSA — Financial Security Assurance
COP Certificate of Participation GO — General Obligation
ETM Escrowed to Maturity MBIA — Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company PCR — Pollution Control Revenue
FRDD Floating Rate Daily Demand XLCA — XL Capital Assurance

See Notes to Financial Statements.

36


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Strategic Municipal Trust (BSD)

  Principal            
  Amount     Option Call      
   Rating1 (000)   Description Provisions2   Value  







 
        LONG-TERM INVESTMENTS—155.0%          
        Alabama—14.7%          
AAA
$ 7,000   Alabama Pub. Sch. & Coll. Auth., Cap. Impvt., Ser. C, 5.75%, 7/01/18 07/09 @ 101.5   $ 7,649,460  
Baa2
  3,000   Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.70%, 11/01/29 11/09 @ 101     3,190,170  
AAA
  4,635 3 Jefferson Cnty. Swr., Ser. D, 5.75%, 2/01/07, FGIC N/A     5,061,976  
             
 
              15,901,606  
             
 
      Alaska—1.1%          
AAA
  1,130   Alaska Hsg. Fin. Corp., Ser. A, 5.875%, 12/01/24, MBIA 12/05 @ 102     1,168,827  
             
 
      California—5.2%          
      Golden St. Tobacco Sec. Corp., Ser. B,          
Baa1
  2,600      5.50%, 6/01/43 06/13 @ 100     2,551,536  
Baa1
  3,100      5.625%, 6/01/38 06/13 @ 100     3,103,472  
             
 
              5,655,008  
             
 
      Colorado—2.0%          
AAA
  10,000   Northwest Pkwy. Pub. Hwy. Auth., Ser. B, Zero Coupon, 6/15/30, FSA 06/11 @ 31.387     2,104,300  
             
 
      Connecticut—8.8%          
      Mashantucket Western Pequot Tribe, Spec. Rev.,          
Baa3
  1,500      Ser. A, 5.50%, 9/01/28 09/09 @ 101     1,455,090  
Baa3
  8,000 4    Ser. B, 5.75%, 9/01/27 09/07 @ 102     7,989,280  
             
 
              9,444,370  
             
 
      Delaware—2.1%          
   
Baa1
  2,000 4 Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/50 No Opt. Call     2,266,480  
             
 
      Florida—9.3%          
      Florida Hsg. Fin. Corp., Sunset Place, Ser. K-1,          
A
  2,400      6.00%, 10/01/19 10/09 @ 102     2,447,664  
A
  2,000      6.10%, 10/01/29 10/09 @ 102     2,040,280  
NR
  3,300   Hillsborough Cnty. Ind. Dev. Auth., National Gypsum, Ser. A, 7.125%, 4/01/30 10/10 @ 101     3,448,665  
BB
  2,045   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr., 6.75%, 11/15/21 11/14 @ 100     2,059,356  
             
 
              9,995,965  
             
 
      Illinois—9.0%          
NR
  850   Centerpoint Intermodal Ctr. Prog. Trust, Ser. A, 8.00%, 6/15/23 No Opt. Call     824,449  
AAA
  5,000   Chicago Brd. of Ed., Sch. Reform, 5.75%, 12/01/27, AMBAC 12/07 @ 102     5,547,350  
CCC
  7,560   Chicago O’Hare Intl. Arpt., Delta Air Lines Inc. Term. Proj., 6.45%, 5/01/18 08/04 @ 100     3,328,819  
             
 
              9,700,618  
             
 
      Iowa—0.7%          
BBB
  1,000   Tobacco Settlement Auth., Tobacco Settlement Rev., Ser. B, 5.30%, 6/01/25 06/11 @ 101     800,440  
             
 
      Kentucky—9.6%          
AAA
32,345   Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/24, MBIA No Opt. Call     10,393,095  
           
 
      Maryland—4.0%          
NR
  4,000 4,5 MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 06/09 @ 100     4,349,200  
             
 
      Michigan—9.7%          
AAA
  2,000   Michigan Hosp. Fin. Auth., Mercy Hlth. Svcs., 5.75%, 8/15/19, MBIA 08/09 @ 101     2,170,140  
BB+
  8,000   Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 07/07 @ 101     8,258,800  
             
 
              10,428,940  
             
 
      Missouri—1.9%          
A
  2,000   Missouri Hlth. & Edl. Facs. Auth., Hlth. Facs. Rev., St. Anthony’s Med. Ctr., 6.125%, 12/01/19 12/10 @ 101     2,071,280  
             
 
      New Jersey—10.8%          
B
  6,000   New Jersey Econ. Dev. Auth., Continental Airlines Inc. Proj., 6.25%, 9/15/19 09/09 @ 101     4,787,820  
AAA
  6,000 3 New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 6.00%, 6/15/10 N/A     6,825,840  
             
 
              11,613,660  
             
 
      New York—8.8%          
      New York City Transl. Fin. Auth., Ser. B,          
AA+
  4,885 3    6.00%, 5/15/10 N/A     5,630,940  
AA+
  1,115      6.00%, 11/15/21 05/10 @ 101     1,232,900  

See Notes to Financial Statements.

37


BlackRock Strategic Municipal Trust (BSD) (continued)

  Principal            
  Amount       Option Call    
      Rating1 (000)   Description Provisions2 Value  







 
                   
        New York (continued)          
Aa1
$ 2,500   New York Mtg. Agcy., Homeowner Mtg., Ser. 85, 5.70%, 10/01/17 09/09 @ 100 $ 2,598,000  
         

 
              9,461,840  
           

 
      Pennsylvania—17.7%          
      Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp.,        
B3
  2,250      6.00%, 11/01/23   11/08 @ 102   2,014,335  
B3
  2,335      6.20%, 11/01/14   11/09 @ 102   2,271,698  
BBB+
  1,500   Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev., 5.25%, 11/15/28 11/08 @ 101   1,378,230  
      Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A,        
A3
  700      6.125%, 11/01/21   05/11 @ 101   710,122  
A3
  1,000      6.25%, 11/01/31   05/11 @ 101   1,014,060  
A3
  1,000      6.50%, 11/01/16   05/11 @ 101   1,049,240  
AAA
  8,500   Philadelphia Sch. Dist., GO, Ser. C, 5.75%, 3/01/29, MBIA 03/10 @ 100   8,974,810  
AAA
  1,500   Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC No Opt. Call   1,688,520  
           

 
                19,101,015  
             

 
        South Carolina—2.5%          
BBB
  2,500   South Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., Palmetto Hlth. Alliance,        
           Ser. C, 7.00%, 8/01/30   08/13 @ 100   2,693,725  
             

 
        Tennessee—5.5%          
Baa1
  3,750   Maury Cnty. Ind. Dev. Brd., PCR, Saturn Corp. Proj., 6.50%, 9/01/24 09/04 @ 102   3,832,725  
AAA
  2,000   Memphis Shelby Cnty. Arpt. Auth., Ser. D, 6.00%, 3/01/24, AMBAC 03/10 @ 101   2,141,520  
           

 
                5,974,245  
             

 
        Texas—15.3%          
AAA
  4,750   Harris Cnty. Houston Sports Auth., Ser. A, Zero Coupon, 11/15/38, MBIA 11/30 @ 61.166   613,035  
AAA
  1,500   Lower Colorado River Auth., Ser. A, 5.50%, 5/15/21, AMBAC 05/09 @ 101   1,599,285  
Ba3
  3,000   Port Corpus Christi Auth., Celanese Proj., Ser. B, 6.70%, 11/01/30 05/12 @ 101   2,898,540  
AAA
  15,000   Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/31, AMBAC 08/12 @ 32.807   2,972,100  
AA+
  500   Texas Wtr. Fin. Asst., GO, 5.75%, 8/01/22 08/10 @ 100   535,520  
AAA
  7,030 3,6 Travis Cnty. Hlth. Facs. Dev. Corp., Ascension Hlth., Ser. A, 5.875%, 11/15/09, AMBAC N/A   7,937,784  
           

 
                16,556,264  
             

 
        Utah—4.1%          
AAA
  4,000   Intermountain Pwr. Agcy., Sply., Ser. B, 5.75%, 7/01/19, MBIA 07/07 @ 102   4,381,520  
           

 
        Virginia—1.7%          
AAA
  1,750   Virginia Res. Auth., Clean Wtr. Rev., 5.625%, 10/01/22 10/10 @ 100   1,872,360  
           

 
        Washington—6.6%          
        Washington, GO,          
Aa1
  4,750      Ser. A, 5.625%, 7/01/24   07/09 @ 100   4,948,028  
Aa1
  2,000      Ser. B, 6.00%, 1/01/25   01/10 @ 100   2,162,080  
             

 
                7,110,108  
             

 
        Wisconsin—3.9%          
BBB
  5,000   Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 06/12 @ 100   4,217,450  
           

 
        Total Long-Term Investments (cost $161,930,386)     167,262,316  
           

 

See Notes to Financial Statements.

38


BlackRock Strategic Municipal Trust (BSD) (continued)

  Shares        
  (000) Description Value  




 
    MONEY MARKET FUND—0.7%      
 
750
AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $750,000) $ 750,000  
     

 
    Total Investments—155.7% (cost $162,680,386)   168,012,316  
    Other assets in excess of liabilities—1.8%   1,931,778  
    Preferred shares at redemption value, including dividends payable—(57.5)%   (62,013,068 )
     

 
    Net Assets Applicable to Common Shareholders—100% $ 107,931,026  
     

 


1 Using the higher of S&P’s, Moody’s or Fitch’s rating.

2 Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.

3 This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.

4 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2004, the Trust held 13.5% of its net assets, with a current market value of $14,604,960, in securities restricted as to resale.

5 Security is deemed to be of investment grade quality by the investment advisor.

6 Entire or partial principal amount pledged as collateral for financial futures contracts.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Insurance Association
FSA Financial Security Assurance PCR Pollution Control Revenue

See Notes to Financial Statements.

39


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock California Insured Municipal 2008 Term Trust (BFC)

  Principal          
  Amount     Option Call    
   Rating1 (000)   Description Provisions2 Value  






 
        LONG-TERM INVESTMENTS—153.9%        
        California—141.7%        
AAA
$ 2,635   Alameda Cnty., COP, Ser. A, 3.80%, 12/01/08, MBIA
No Opt. Call
$ 2,737,870  
      Anaheim Union High Sch. Dist., GO, Ser. A, FSA,
     
AAA
  1,060      3.50%, 8/01/08
No Opt. Call
  1,088,249  
AAA
  1,250  
   4.00%, 8/01/09
No Opt. Call
  1,303,800  
AAA
  1,000   Burbank, Elec. Rev., 3.50%, 6/01/09, MBIA
No Opt. Call
  1,021,370  
      California, GO,
     
AAA
  2,000      5.00%, 6/01/09, MBIA
No Opt. Call
  2,171,900  
AAA
  3,000      5.50%, 4/01/09, MBIA
No Opt. Call
  3,315,150  
AAA
  3,000      5.50%, 2/01/10, MBIA
No Opt. Call
  3,326,220  
AAA
  2,000      6.25%, 9/01/08, FGIC
No Opt. Call
  2,260,280  
AAA
  15,000      6.30%, 9/01/08, MBIA
No Opt. Call
  16,981,200  
      California Dept. of Wtr. Res.,        
AAA
  10,000      Pwr. Sply. Rev., Ser. A, 3.125%, 5/01/08, FSA
No Opt. Call
  10,102,200  
AAA
  10,000      Pwr. Sply. Rev., Ser. A, 3.375%, 5/01/09, MBIA
No Opt. Call
  10,100,500  
AAA
  1,000      Wtr. Rev., Central Valley Proj., Ser. Z, 4.00%, 12/01/09, FGIC
No Opt. Call
  1,045,720  
AAA
  2,000   California Hlth. Facs. Fin. Auth., Sutter Hlth. Care Sys., 5.70%, 8/15/09, MBIA 08/06 @ 102   2,167,680  
AAA
  2,100   California Pub. Wks. Brd., Energy Efficiency, Ser. A, 5.625%, 10/01/08, AMBAC 10/05 @ 102   2,232,321  
AAA
  2,600   Castaic Lake Wtr. Agcy., COP, Wtr. Sys. Impvt. Proj., Ser. A, 7.25%, 8/01/10, MBIA No Opt. Call   3,130,374  
AAA
  1,135   Chaffey Cmnty. College Dist., GO, Ser. A, 3.75%, 7/01/09, FSA No Opt. Call   1,170,072  
      Chula Vista, COP, MBIA, Police Fac. Proj.,        
AAA
  1,000  
   4.00%, 8/01/08
No Opt. Call   1,043,800  
AAA
  1,000  
   4.00%, 8/01/09
No Opt. Call   1,040,650  
AAA
  5,500   Clovis Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/08, FGIC ETM   4,841,155  
AAA
  1,855   El Paso De Robles, GO, Ser. A, Zero Coupon, 8/01/09, FGIC No Opt. Call   1,548,832  
AAA
  4,025   Elsinore Valley Mun. Wtr. Dist., COP, Ser. A, 6.00%, 7/01/09, FGIC No Opt. Call   4,545,432  
AAA
  1,055   Glendale Unified Sch. Dist., Ser. D, 3.50%, 9/01/09, MBIA No Opt. Call   1,076,132  
      Long Beach Bd. of Fin. Auth., Tax Allocation Rev., Redev. Projs., AMBAC,        
AAA
  1,245  
   3.50%, 8/01/08
No Opt. Call   1,275,764  
AAA
  1,120  
   3.75%, 8/01/09
No Opt. Call   1,152,491  
AAA
  13,110   Los Angeles, GO, Ser. A, 3.50%, 9/01/09, MBIA No Opt. Call   13,372,593  
      Los Angeles Cnty.,        
AAA
  2,910      Asset Leasing Corp. Rev., 5.95%, 12/01/07, AMBAC No Opt. Call   3,246,541  
AAA
  8,090      Asset Leasing Corp. Rev., 6.00%, 12/01/08, AMBAC No Opt. Call   9,137,817  
AAA
  8,600      Asset Leasing Corp. Rev., 6.05%, 12/01/09, AMBAC No Opt. Call   9,842,098  
AAA
  4,405      Met. Trans. Auth. Rev., Spl. Benefit Assmt. Dist. A1, 3.75%, 9/01/08, AMBAC No Opt. Call   4,567,633  
AAA
  9,835      Sanitation Dists. Fin. Auth. Rev., Cap. Proj., Ser. A, 4.00%, 10/01/09, FSA No Opt. Call   10,271,379  
AAA
  6,000   Los Angeles Dept. of Arpts., Arpt. Rev., LA Intl. Arpt., Ser. B, 5.00%, 5/15/09, MBIA No Opt. Call   6,516,900  
AAA
  3,860   Los Angeles Sanitation Equip., Ser. A, 3.625%, 2/01/09, FSA No Opt. Call   3,957,426  
      Los Angeles Unified Sch. Dist., FSA,        
AAA
  2,660      Ser. B, 3.00%, 10/01/08 No Opt. Call   2,675,588  
AAA
  7,500      Ser. F, 3.00%, 7/01/09 No Opt. Call   7,473,375  
AAA
  1,000   Mount Diablo Unified Sch. Dist., GO, 3.50%, 8/01/08, FSA No Opt. Call   1,026,650  
AAA
  1,000   Orange Cnty. Local Trans. Auth., Sales Tax Rev., 6.00%, 2/15/09, MBIA No Opt. Call   1,124,640  
AAA
  2,495   Pasadena Unified Sch. Dist., Ser. C, 3.50%, 11/01/08, FSA No Opt. Call   2,565,484  
AAA
  3,345   Sacramento City Fin. Auth., City Hall & Redev. Projs., Ser. A, 3.50%, 12/01/08, FSA No Opt. Call   3,441,303  
AAA
  1,000   Sacramento City Unified Sch. Dist., 3.50%, 7/01/09, FGIC No Opt. Call   1,019,420  
      Sacramento Mun. Util. Dist., Elec. Rev., Ser. C,        
AAA
  825      5.75%, 11/15/07, MBIA ETM   835,692  
AAA
  3,750      5.75%, 11/15/08, FGIC ETM   3,797,362  
AAA
  3,950      5.75%, 11/15/09, MBIA ETM   3,999,454  
AAA
  5,000   San Bernardino Cnty., Trans. Auth., Sales Tax Rev., 6.00%, 3/01/10, FGIC ETM   5,284,900  
      San Diego Cnty.,        
AAA
  2,360      COP, 5.00%, 2/01/09, AMBAC No Opt. Call   2,551,915  
AAA
  11,000      COP, 5.625%, 9/01/12, AMBAC No Opt. Call   12,356,960  
AAA
  7,830      Regl. Trans. Comm., Sales Tax Rev., Ser. A, 6.00%, 4/01/08, MBIA ETM   7,907,752  
AAA
  2,500      Regl. Trans. Comm., Sales Tax Rev., Ser. A, 6.00%, 4/01/08, FGIC ETM   2,524,825  
AAA
  12,725   San Diego Pub. Facs. Fin. Auth., Wtr. Rev., 3.00%, 8/01/09, MBIA No Opt. Call   12,679,190  

See Notes to Financial Statements.

40


BlackRock California Insured Municipal 2008 Term Trust (BFC) (continued)

  Principal              
  Amount       Option Call      
   Rating1 (000)   Description Provisions2   Value  








 
                     
      California (continued)            
AAA
$
1,250   San Francisco City & Cnty., GO, 4.00%, 6/15/09, FSA
No Opt. Call
  $ 1,305,438  
AAA
  1,000   San Jose Redev. Agcy., 4.00%, 8/01/09, MBIA
ETM
    1,044,770  
AAA
  1,000   San Mateo Cnty. Cmnty. College Dist., GO, Ser. A, 3.30%, 9/01/08, FGIC
No Opt. Call
    1,019,380  
      Santa Ana Unified Sch. Dist., GO, Ser. B, FGIC,
       
AAA
  1,000      Zero Coupon, 8/01/08  
No Opt. Call
    878,450  
AAA
  2,000      Zero Coupon, 8/01/09  
No Opt. Call
    1,669,900  
AAA
  4,030   Santa Barbara Cnty., Local Transp. Auth., Sales Tax Rev., 3.00%, 3/15/09, FSA
No Opt. Call
    4,024,842  
AAA
  2,470   Santa Clara, COP, Ser. B, 3.50%, 2/01/09, AMBAC
No Opt. Call
    2,519,252  
AAA
  2,865 3 Santa Clara Cnty. Fin. Auth., Fac. Replacement Proj. A, 6.50%, 11/15/04, AMBAC
N/A
    2,976,133  
AAA
  4,620   Santa Clara Valley Wtr. Dist., COP, 4.00%, 2/01/09, FGIC
No Opt. Call
    4,800,041  
AAA
  4,665   So. Coast Air Quality Mgmt. Dist. Bldg. Corp., 4.00%, 8/01/09, AMBAC
No Opt. Call
    4,865,782  
      Univ. of California,  
       
AAA
  2,500      Ser. A, 5.00%, 5/15/09, AMBAC  
No Opt. Call
    2,721,275  
AAA
  2,000      Ser. F, 5.00%, 9/01/11, FGIC  
09/06 @ 101
    2,130,020  
             

 
              242,811,342  
             

 
      Puerto Rico—12.2%            
      Puerto Rico Elec. Pwr. Auth.,            
AAA
  7,000      Ser. DD, 5.00%, 7/01/10, FSA  
07/08 @ 101.5
    7,574,210  
AAA
  3,000      Ser. KK, 4.50%, 7/01/09, XLCA  
No Opt. Call
    3,183,180  
AAA
  5,280      Ser. DD, 5.00%, 7/01/09, FSA  
07/08 @ 101.5
    5,725,579  
AAA
  4,000   Puerto Rico Mun. Fin. Agcy., Ser. A, 5.625%, 8/01/10, FSA
08/09 @ 101
    4,451,720  
       
 

 
       
   
20,934,689
 
             

 
        Total Long-Term Investments (cost $251,872,912)     263,746,031  
             

 
                     
   
Shares
               
   
(000)
             
   
               
        MONEY MARKET FUNDS—5.4%          
   
8,600
  AIM Tax Free Investment Co. Cash Reserve Portfolio N/A     8,600,000  
   
   650
  SSgA Tax Free Money Mkt. Fund   N/A     650,000  
               

 
        Total Money Market Funds (cost $9,250,000)       9,250,000  
             

 
        Total Investments—159.3% (cost $261,122,912)     272,996,031  
        Other assets in excess of liabilities—1.7%       2,945,978  
        Preferred shares at redemption value, including dividends payable—(61.0)%     (104,571,169 )
             

 
        Net Assets Applicable to Common Shareholders—100%     $ 171,370,840  
             

 

 


1 Using the higher of S&P’s, Moody’s or Fitch’s rating.

2 Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.

3 This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.

Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 96.6% of the Trust’s total investments.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation GO General Obligation
ETM Escrowed to Maturity MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company XLCA XL Capital Assurance

See Notes to Financial Statements.

41


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock California Municipal 2018 Term Trust (BJZ)

  Principal            
  Amount     Option Call      
      Rating1 (000)   Description Provisions2   Value  







 
        LONG-TERM INVESTMENTS—148.4%          
        California—123.5%          
BBB+
$ 2,100   ABAG Fin. Auth. for Nonprofit Corps., San Diego Hosp. Assoc., Ser. C, 5.375%, 3/01/21 03/14 @ 100   $ 2,043,846  
      California, GO,          
A3
  5,000      5.00%, 11/01/20 11/11 @ 100     5,054,500  
AAA
  6,500      Ser. BZ, 5.35%, 12/01/21, MBIA 06/07 @ 101     6,545,110  
      California Cnty. Tobacco Sec. Agcy.,          
BBB
  5,000      Ser. A, 5.50%, 6/01/33 06/12 @ 100     3,955,600  
BBB
  5,000      Fresno Cnty. Fdg. Corp., 5.875%, 6/01/27 06/12 @ 100     4,255,300  
A-
  6,500 3 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.125%, 5/01/19 05/12 @ 101     6,679,530  
      California Hlth. Fac. Fin. Auth., Adventist Hlth. Sys., Ser. A,          
A
  1,075      5.00%, 3/01/18 03/13 @ 100     1,069,088  
A
  1,000  
   5.00%, 3/01/19
03/13 @ 100     985,170  
A
  2,060  
   5.00%, 3/01/20
03/13 @ 100     2,010,951  
A
  1,355  
   5.00%, 3/01/24
03/13 @ 100     1,271,911  
AAA
  20,000   California Hsg. Fin. Agcy., Home Mtg. Rev., Ser. T, Zero Coupon, 8/01/21, MBIA 08/11 @ 57.562     7,474,400  
      California Infrastructure & Econ. Dev.,          
A
  1,985      J. David Gladstone Inst. Proj., 5.50%, 10/01/20 10/11 @ 101     2,047,329  
A
  6,500      Kaiser Hosp. Asst. LLC, Ser. A, 5.55%, 8/01/31 08/11 @ 102     6,580,600  
A2
  3,100   California Poll. Ctrl. Fin. Auth., PCR, San Diego Gas & Elec., Ser. A, 5.90%, 6/01/14 No Opt. Call     3,412,356  
      California Pub. Wks. Brd., Ser. A,          
Baa1
  2,020      California Cmnty. College, 5.00%, 12/01/17 12/08 @ 101     2,060,643  
A3
  2,415      California St. Univ., 5.00%, 10/01/17 10/08 @ 101     2,468,927  
A-
  2,500   Daly City Hsg. Dev. Fin. Agcy., Sr. Franciscan Acquisition Proj., Ser. A, 5.80%, 12/15/25 12/13 @ 102     2,524,875  
AAA
  3,395   Fontana Pub. Fin. Auth., Tax Allocation Rev., Fontana Redev. Proj., Ser. A, 5.25%, 9/01/18, FSA . 09/11 @ 101     3,562,713  
BBB
  20,000   Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., Zero Coupon, 1/15/21 01/10 @ 53.346     7,456,200  
      Lathrop Fin. Auth., Wtr. Sply. Proj.,          
NR
  995 4
   5.80%, 6/01/21
06/13 @ 100     968,831  
NR
  1,040 4
   5.85%, 6/01/22
06/13 @ 100     1,010,745  
NR
  1,000 4
   5.90%, 6/01/23
06/13 @ 100     971,130  
AAA
  5,000   Long Beach Harbor Dept., Ser. A, 5.25%, 5/15/18, FGIC 05/10 @ 101     5,155,800  
AA
  5,000   Los Angeles Cnty., Pub. Wks. Fin. Auth., Regl. Pk. & Open Space, Ser. A, 5.00%, 10/01/19 10/07 @ 101     5,090,200  
AAA
  10,025   Los Angeles Habor Dept., Ser. B, 5.50%, 8/01/21, AMBAC 08/11 @ 100     10,465,198  
AAA
  5,000   Riverside Unified Sch. Dist., Ser. A, 5.25%, 2/01/23, FGIC 02/12 @ 101     5,135,950  
      San Bernardino Cnty., Spl. Tax, Cmnty. Facs.,          
NR
  105  
   5.35%, 9/01/17
09/12 @ 102     99,666  
NR
  245  
   5.50%, 9/01/18
09/12 @ 102     234,090  
NR
  500  
   5.60%, 9/01/19
09/12 @ 102     477,575  
NR
  355  
   5.70%, 9/01/20
09/12 @ 102     341,212  
AAA
  2,980   San Diego Cnty., COP, 5.25%, 11/01/19, AMBAC 11/11 @ 100     3,117,944  
AAA
2,135  
Santa Clara Valley Transp. Auth., Sales Tax Rev., Ser. A, 5.00%, 6/01/18, MBIA
06/11 @ 100  
2,194,972  
AAA
  4,590   Stockton East Wtr. Dist., COP, Ser. B, Zero Coupon, 4/01/19, FGIC 04/12 @ 66.427     2,026,623  
BBB
  1,000   Tobacco Sec. Auth. No. California, Tobacco Settlement Rev., Ser. A, 5.375%, 6/01/41 06/11 @ 100     725,510  
BBB
  6,000   Tobacco Sec. Auth. So. California, Tobacco Settlement Rev., Ser. A, 5.50%, 6/01/36 06/12 @ 100     4,620,900  
           

 
            114,095,395  
           
 
        Delaware—4.7%          
         A3   4,000 5 Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 No Opt. Call     4,353,320  
             

 
        Maryland—5.9%          
         NR   5,000 4,5 MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 06/09 @ 100     5,436,500  
             

 
        Puerto Rico—14.3%          
A-
  4,410   Puerto Rico Pub. Bldgs. Auth., Gov’t. Facs., Ser. C, 5.75%, 7/01/19 No Opt. Call     4,898,540  
BBB+
  7,500 6 Puerto Rico Pub. Fin. Corp., Ser. E, 5.70%, 2/01/10 N/A     8,380,425  
             

 
                13,278,965  
             

 
        Total Long-Term Investments (cost $138,375,043)     137,164,180  
             
 

See Notes to Financial Statements.

42


BlackRock California Municipal 2018 Term Trust (BJZ) (continued)

  Shares        
  (000) Description Value  




 
    MONEY MARKET FUNDS—10.0%      
  4,600 AIM Tax Free Investment. Co. Cash Reserve Portfolio $ 4,600,000  
  4,600 SSgA Tax Free Money Mkt. Fund   4,600,000  
     

 
    Total Money Market Funds (cost $9,200,000)   9,200,000  
     

 
    Total Investments—158.4% (cost $147,575,043)   146,364,180  
    Other assets in excess of liabilities—1.7%   1,562,181  
    Preferred shares at redemption value, including dividends payable—(60.1)%   (55,528,192 )
     

 
    Net Assets Applicable to Common Shareholders—100% $ 92,398,169  
     

 


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 Entire or partial principal amount pledged as collateral for financial futures contracts.

4 Security is deemed to be of investment grade quality by the investment advisor.

5 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2004, the Trust held 10.6% of its net assets, with a current market value of $9,789,820, in securities restricted as to resale.

6 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.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
COP Certificate of Participation MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FSA Financial Security Assurance      

See Notes to Financial Statements.

43


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

  Principal          
  Amount     Option Call    
   Rating1 (000)   Description Provisions2 Value  






 
        LONG-TERM INVESTMENTS—152.5%        
        Florida—134.8%        
AAA
$ 1,500   Alachua Cnty. Sch. Dist., GO, 4.25%, 1/01/09, FSA
No Opt. Call
$ 1,564,725  
AAA
  1,765   Collier Cnty. Sch. Brd., COP, Ser. A, 3.50%, 2/15/09, FSA
No Opt. Call
  1,784,521  
      Dade Cnty.,        
AAA
  1,000      Aviation Rev., 6.00%, 10/01/08, AMBAC 10/05 @ 102   1,065,900  
AAA
  5,000      GO, Ser. A, Zero Coupon, 2/01/08, MBIA 02/06 @ 92.852   4,442,300  
AAA
  905      GO, Ser. B, Zero Coupon, 10/01/08, AMBAC ETM   789,142  
AAA
  1,095      GO, Ser. B, Zero Coupon, 10/01/08, AMBAC No Opt. Call   949,091  
AAA
  1,515   Delray Beach, Decade of Excellence Prog., GO, 3.50%, 2/01/09, FSA No Opt. Call   1,533,544  
      Escambia Cnty. Util. Sys., Ser. B, FGIC,        
AAA
  1,595      6.125%, 1/01/09 No Opt. Call   1,780,865  
AAA
  5,235      6.25%, 1/01/12 No Opt. Call   6,027,841  
AAA
  5,060      6.25%, 1/01/13 No Opt. Call   5,854,268  
      Florida Brd. of Ed.,        
AAA
  8,720      GO, 3.50%, 1/01/09, FSA No Opt. Call   8,824,902  
AAA
  4,190      Lottery Rev., Ser. A, 5.00%, 7/01/08, FGIC No Opt. Call   4,509,152  
      Florida Dept. of Env. Protection Presvtn., Ser. B, FGIC,        
AAA
  5,905      4.00%, 7/01/08 No Opt. Call   6,134,291  
AAA
  6,140      4.00%, 7/01/09 No Opt. Call   6,348,453  
      Florida Div. of Bond Fin. Dept., Gen. Svc. Rev.,        
AAA
  2,000      Nat. Res. & Presvtn., Ser. A, 5.00%, 7/01/11, AMBAC 07/07 @ 101   2,115,820  
AAA
  8,000      Dept. of Env. Presvtn., Ser. B, 5.25%, 7/01/10, FSA 07/08 @ 101   8,595,600  
AAA
  1,090   Florida Mun. Loan Council, Ser. C, 3.50%, 11/01/08, MBIA No Opt. Call   1,110,536  
AAA
  6,000   Greater Orlando Aviation Auth., Orlando Arpt. Facs. Rev., Ser. C, 3.50%, 10/01/08, MBIA No Opt. Call   6,089,280  
      Hillsborough Cnty. Cap Impvt., FGIC,        
AAA
  2,630 3    6.25%, 8/01/04 N/A   2,665,426  
AAA
  1,500 3    6.60%, 8/01/04 N/A   1,520,565  
AAA
  5,000 3 Hillsborough Cnty. Sch. Brd., COP, 5.875%, 7/01/04, MBIA N/A   5,100,000  
AAA
  3,000   Hillsborough Cnty. Sch. Dist., Sales Tax Rev., 4.00%, 10/01/09, AMBAC No Opt. Call   3,099,270  
AAA
  10,000   Hillsborough Cnty. Util., 4.50%, 8/01/08, AMBAC No Opt. Call   10,577,600  
      Indian River Cnty. Sch. Dist., GO, FSA,        
AAA
  950      3.25%, 4/01/08 No Opt. Call   961,333  
AAA
  1,000      3.25%, 4/01/09 No Opt. Call   1,001,770  
      Indian Trace Cmnty. Dev. Dist., Wtr. Mgmt. Spec. Benefit, Ser. A, MBIA,        
AAA
  3,000      5.625%, 5/01/08 05/05 @ 102   3,150,690  
AAA
  2,910      5.75%, 5/01/09 05/05 @ 102   3,059,108  
      Jacksonville Beach Utils., AMBAC,        
AAA
  1,100      3.10%, 4/01/09 No Opt. Call   1,094,753  
AAA
  1,155      3.10%, 10/01/09 No Opt. Call   1,143,589  
AAA
  5,895   Jacksonville Excise Tax, 4.25%, 10/01/08, AMBAC No Opt. Call   6,178,490  
      Jacksonville Sales Tax,        
AAA
  1,155      3.125%, 10/01/08, FGIC No Opt. Call   1,159,227  
AAA
  1,000      3.375%, 10/01/09, FGIC No Opt. Call   1,003,250  
AAA
  2,000      4.10%, 10/01/08, AMBAC No Opt. Call   2,084,320  
AAA
  825   Lake Cnty. Sch. Brd., COP, 3.50%, 7/01/09, AMBAC No Opt. Call   833,011  
AAA
  2,000   Lakeland Elec. & Wtr., 5.90%, 10/01/08, FSA No Opt. Call   2,226,500  
AAA
  3,000   Lee Cnty. Arprt., 4.25%, 10/01/09, FSA No Opt. Call   3,124,800  
      Miami, GO, FGIC,        
AAA
  1,345      5.90%, 12/01/08 No Opt. Call   1,503,024  
AAA
  1,000      6.00%, 12/01/09 No Opt. Call   1,132,380  
      Miami Dade Cnty.,        
AAA
  2,000      Edl. Fac., Ser. A, 4.875%, 4/01/09, AMBAC No Opt. Call   2,145,360  
AAA
  1,535      Pub. Svc. Tax Rev., Pub. Impvt., 3.40%, 4/01/08, AMBAC No Opt. Call   1,561,402  
AAA
  1,595      Pub. Svc. Tax Rev., Pub. Impvt., 3.625%, 4/01/09, AMBAC No Opt. Call   1,623,933  
AAA
  4,775      Sch. Brd., COP, 5.25%, 8/01/11, FSA 08/08 @ 101   5,158,767  

See Notes to Financial Statements.

44


BlackRock Florida Insured Municipal 2008 Term Trust (BRF) (continued)

  Principal            
  Amount       Option Call    
   Rating1 (000)   Description Provisions2 Value  







 
        Florida (continued)          
        Orange Cnty.,          
AAA
$ 1,000 3    Pub. Svc. Tax Rev., 5.70%, 10/01/05, FGIC
N/A
$ 1,068,920  
AAA
  4,895      Sales Tax Rev., Ser. A, 3.25%, 1/01/09, FGIC
No Opt. Call
  4,903,077  
AAA
  5,130      Tourist Dev., Tax Rev., Ser. A, 4.00%, 10/01/08, AMBAC
No Opt. Call
  5,315,706  
AAA
  5,340      Tourist Dev., Tax Rev., Ser. A, 4.00%, 10/01/09, AMBAC
No Opt. Call
  5,503,724  
AAA
  1,005      Tourist Dev., Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA
ETM
  1,121,912  
AAA
  495      Tourist Dev., Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA
No Opt. Call
  549,044  
        Orlando Wst. Wtr. Sys., Ser. A, AMBAC,  
     
AAA
  1,100      3.25%, 10/01/08  
No Opt. Call
  1,109,460  
AAA
  1,280      3.50%, 10/01/09  
No Opt. Call
  1,291,802  
      Osceola Cnty., AMBAC,  
     
AAA
  1,810      3.75%, 10/01/08  
No Opt. Call
  1,861,296  
AAA
  1,535      3.875%, 10/01/09  
No Opt. Call
  1,576,629  
      Osceola Cnty. Gas Tax, FGIC,  
     
AAA
  640      3.10%, 4/01/08  
No Opt. Call
  644,256  
AAA
  535      3.30%, 4/01/09  
No Opt. Call
  537,119  
      Palm Beach Cnty. Sch. Brd., COP, Ser. D, FSA,
     
AAA
  1,770      3.00%, 8/01/08  
No Opt. Call
  1,769,115  
AAA
  850      3.30%, 8/01/09  
No Opt. Call
  848,529  
AAA
  7,085   Pasco Cnty. Solid Wst. Disp. & Res. Rec. Sys., 6.00%, 4/01/09, FGIC 08/04 @ 100   7,103,846  
      Polk Cnty. Sch. Brd., COP, Ser. A, FSA,          
AAA
  2,000      3.20%, 1/01/08   No Opt. Call   2,017,100  
AAA
  2,000      3.375%, 1/01/09   No Opt. Call   2,011,180  
AAA
  1,020   Sebring Wtr. & Wstwtr., 3.625%, 1/01/09, FGIC No Opt. Call   1,037,554  
AAA
  1,000 3 Seminole Cnty. Sch. Brd., COP, Ser. A, 5.90%, 7/01/04, MBIA N/A   1,020,000  
AAA
  2,000   Seminole Cnty. Wtr. & Swr., 6.00%, 10/01/09, MBIA No Opt. Call   2,257,160  
      So. Florida Wtr. Mgmt. Dist., AMBAC,          
AAA
  1,250      3.00%, 10/01/08   No Opt. Call   1,248,400  
AAA
  1,000      3.30%, 10/01/09   No Opt. Call   999,670  
AAA
  1,025   St. Johns Cnty. Sch. Brd. COP, Ser. A, 3.50%, 7/01/09, MBIA No Opt. Call   1,034,953  
AAA
  500   St. Petersburg Hlth. Facs. Auth., All Childrens Hosp., 3.10%, 11/15/08, AMBAC No Opt. Call   499,365  
AAA
  1,370   Village Ctr. Cmnty. Dev. Dist. Rec., Ser. A, 5.50%, 11/01/08, MBIA No Opt. Call   1,506,014  
AAA
  2,370   Volusia Cnty., Sales Tax Rev., Ser. B, 4.00%, 10/01/08, MBIA No Opt. Call   2,460,581  
           

 
                183,925,211  
             

 
        Puerto Rico—17.7%          
        Puerto Rico Mun. Fin. Agcy., Ser. A, FSA,        
AAA
  10,000      3.50%, 8/01/08   No Opt. Call   10,192,900  
AAA
  12,000      3.75%, 8/01/09   No Opt. Call   12,297,000  
AAA
  1,500      5.625%, 8/01/10   08/09 @ 101   1,669,395  
             

 
                24,159,295  
             

 
        Total Long-Term Investments (cost $201,976,770)     208,084,506  
           

 

See Notes to Financial Statements.

45


BlackRock Florida Insured Municipal 2008 Term Trust (BRF) (continued)

  Shares        
  (000) Description Value  




 
    MONEY MARKET FUNDS—7.0%      
  6,800 AIM Tax Free Investment Co. Cash Reserve Portfolio $ 6,800,000  
  2,700 SSgA Tax Free Money Mkt. Fund   2,700,000  
     

 
    Total Money Market Funds (cost $9,500,000)   9,500,000  
     

 
    Total Investments—159.5% (cost $211,476,770)   217,584,506  
    Other assets in excess of liabilities—2.2%   3,062,879  
    Preferred shares at redemption value, including dividends payable—(61.7)%   (84,165,897 )
     

 
    Net Assets Applicable to Common Shareholders—100% $ 136,481,488  
     

 


1 Using the higher of S&P’s, Moody’s or Fitch’s rating.

2 Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.

3 This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.

Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 95.6% of the Trust’s total investments.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation GO General Obligation
ETM Escrowed to Maturity MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company      

See Notes to Financial Statements.

46


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Florida Municipal 2020 Term Trust (BFO)

  Principal          
  Amount     Option Call    
   Rating1 (000)   Description Provisions2 Value  






 
        LONG-TERM INVESTMENTS—157.6%        
        Florida—137.3%        
NR
$
2,000   Brandy Creek Cmnty. Dev. Dist., Spl. Assmt., Ser. B, 5.40%, 5/01/09
No Opt. Call
$
2,002,400  
NR
  5,000   Crossings at Fleming Island, Cmnty. Dev. Dist., 6.75%, 10/01/25 10/09 @ 102   5,078,250  
AAA
  1,095   Deltona Util. Sys., 5.00%, 10/01/23, MBIA 10/13 @ 100   1,107,286  
BBB
  4,000   Escambia Cnty. Env. Impvt., 5.75%, 11/01/27 No Opt. Call   3,811,840  
AAA
  5,000 3 Escambia Cnty. Hlth. Facs. Auth., 5.95%, 7/01/20, AMBAC No Opt. Call   5,203,850  
AAA
  6,150   Florida Brd. of Ed., GO, Ser. J, 5.00%, 6/01/24, AMBAC 06/13 @ 101   6,194,649  
BBB-
  1,955   Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23 10/12 @ 100   1,908,842  
AAA
  1,000   Hillsborough Cnty. Sch. Brd., 5.00%, 7/01/27, MBIA 07/13 @ 100   991,990  
AA-
  1,000   Lakeland Wtr. & Wstwtr., 5.00%, 10/01/27 10/12 @ 100   989,180  
AAA
  3,000   Lee Cnty. Transp. Fac., Ser. B, 5.00%, 10/01/22, AMBAC 10/14 @ 100   3,066,060  
      Marco Island Util. Sys., MBIA,        
AAA
  2,000      5.00%, 10/01/22 10/13 @ 100   2,040,400  
AAA
  1,375  
   5.00%, 10/01/23
10/13 @ 100   1,390,428  
AAA
  1,000  
   5.25%, 10/01/21
10/13 @ 100   1,037,220  
BB
  2,500   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr., 6.75%, 11/15/21 11/14 @ 100   2,517,550  
      Miami Dade Cnty., MBIA,        
AAA
  5,365      Ser. A, Zero Coupon, 10/01/19 04/08 @ 55.413   2,366,126  
AAA
  10,000      Ser. A, Zero Coupon, 10/01/20 04/08 @ 52.398   4,158,500  
AAA
  7,560      Ser. B, Zero Coupon, 10/01/32 04/08 @ 26.494   1,450,310  
AAA
  4,695   Miami-Dade Cnty. Edl. Facs. Auth. Rev., Univ. Miami, Ser. A, 5.00%, 4/01/24, AMBAC 04/14 @ 100   4,728,428  
AAA
  4,000   Mun. Loan Council, Ser. A, Zero Coupon, 4/01/20, MBIA No Opt. Call   1,814,240  
NR
  4,000   No. Palm Beach Cnty. Impvt. Dist., Wtr. Ctrl. & Impvt. Unit Dev. 43, 6.10%, 8/01/21 08/11 @ 101   4,079,160  
A
  4,450   Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32 11/12 @ 101   4,422,900  
AAA
  6,500   Palm Beach Cnty. Sch. Brd., COP, Ser. D, 5.00%, 8/01/28, FSA 08/12 @ 100   6,410,950  
      Palm Coast Florida Util. Sys., MBIA,        
AAA
  1,770  
   5.00%, 10/01/22
10/13 @ 100   1,805,754  
AAA
  1,485  
   5.00%, 10/01/23
10/13 @ 100   1,501,662  
AAA
  1,500  
   5.00%, 10/01/24
10/13 @ 100   1,510,155  
AAA
  2,760  
Polk Cnty. Florida Util. Sys., 5.00%, 10/01/23, FGIC
10/13 @ 100   2,790,967  
NR
  4,765   Sterling Hill Cmnty. Dev. Dist., 6.10%, 5/01/23 05/13 @ 101   4,780,534  
NR
  2,765   Stevens Plantation Impvt. Proj., 6.375%, 5/01/13 No Opt. Call   2,765,166  
NR
  1,250   Sumter Cnty. Indl. Dev. Auth., No. Sumter Util. Co. LLC, 6.80%, 10/01/32 10/09 @ 100   1,254,875  
      Tohopekaliga Wtr. Auth., FSA,        
AAA
  3,630      Ser. A, 5.00%, 10/01/21 10/13 @ 100   3,708,771  
AAA
  3,810      Ser. A, 5.00%, 10/01/22 10/13 @ 100   3,886,962  
AAA
  2,000      Ser. A, 5.00%, 10/01/23 10/13 @ 100   2,022,440  
AAA
  1,975      Ser. B, 5.00%, 10/01/22 10/13 @ 100   2,014,895  
AAA
  1,180      Ser. B, 5.00%, 10/01/23 10/13 @ 100   1,193,240  
NR
  2,000   Village Cmnty. Dev. Dist. No. 5, Spl. Assmt. Rev., Ser. A, 6.00%, 5/01/22 05/13 @ 101   2,014,000  
      Village Ctr. Cmnty. Dev. Dist.,        
AAA
  5,000      5.25%, 10/01/23, MBIA 10/13 @ 101   5,128,850  
NR
  2,000 4    Ser. B, 6.35%, 1/01/18 01/14 @ 100   2,067,000  
             
 
             
105,215,830
 
        Puerto Rico—20.3%    
 
        Children’s Trust Fund, Tobacco Settlement Rev.,        
BBB
  2,015  
   5.50%, 5/15/39
05/12 @ 100   1,637,409  
BBB
  10,500  
   5.625%, 5/15/43
05/12 @ 100   8,518,860  
BBB+
  5,000   Puerto Rico Pub. Fin. Corp., Ser. E, 5.50%, 8/01/29 02/12 @ 100   5,445,150  
             
 
              15,601,419  
             
 
        Total Long-Term Investments (cost $123,214,817)   120,817,249  
             
 
        SHORT-TERM INVESTMENTS—4.4%        
        Puerto Rico—1.6%        
A1
  300 5 Puerto Rico Comnwlth. Gov’t. Dev. Bank, 1.02%, 7/01/04, MBIA, FRDD N/A   300,000  
A1
  950 5 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Transp. Rev.,        
           Ser. A, 1.00%, 7/07/04, AMBAC, FRWD N/A   950,000  
             
 
              1,250,000  
             
 

See Notes to Financial Statements.

47


BlackRock Florida Municipal 2020 Term Trust (BFO) (continued)

  Shares        
  (000) Description Value  




 
           
    Money Market Fund—2.8%      
 
2,100
AIM Tax Free Investment Co. Cash Reserve Portfolio $ 2,100,000  
     

 
    Total Short-Term Investments (cost $3,350,000)   3,350,000  
     

 
    Total Investments—162.0% (cost $126,564,817)   124,167,249  
    Other assets in excess of liabilities—1.8%   1,383,588  
    Preferred shares at redemption value, including dividends payable—(63.8)%   (48,905,025 )
     

 
    Net Assets Applicable to Common Shareholders—100% $ 76,645,812  
     

 


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 Entire or partial principal amount pledged as collateral for financial futures contracts.

4 Security is deemed to be of investment grade quality by the investment advisor.

5 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. Rate shown as of June 30, 2004.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
COP Certificate of Participation GO General Obligation
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Insurance Association
FRDD Floating Rate Daily Demand PCR Pollution Control Revenue
FRWD Floating Rate Weekly Demand      

See Notes to Financial Statements.

48


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

  Principal          
  Amount     Option Call    
   Rating1 (000)   Description Provisions2 Value  






 
        LONG-TERM INVESTMENTS—144.0%        
        Albany Cnty., GO, FGIC,        
AAA
$ 1,515      3.50%, 6/01/08
No Opt. Call
$ 1,545,482  
AAA
  2,030      3.50%, 6/01/09
No Opt. Call
  2,061,323  
AAA
  1,000   Bath Central Sch. Dist., 4.00%, 6/15/08, FGIC
No Opt. Call
  1,038,790  
AAA
  2,250   Central Square Central Sch. Dist., 3.75%, 5/15/09, FGIC
No Opt. Call
  2,309,535  
AAA
  1,960   East Greenbush Central Sch. Dist., Ser. C, 4.00%, 6/15/09, FSA
No Opt. Call
  2,035,029  
      Elmira City Sch. Dist., FGIC,
     
AAA
  2,125      3.25%, 6/15/08
No Opt. Call
  2,148,524  
AAA
  1,500      3.25%, 6/15/09
No Opt. Call
  1,506,285  
      Erie Cnty., GO,
     
AAA
  3,825      Pub. Impvt., Ser. A, 3.25%, 9/01/09, FGIC
No Opt. Call
  3,814,711  
AAA
  1,000      Pub. Impvt., Ser. A, 3.75%, 10/01/08, FGIC
No Opt. Call
  1,027,140  
AAA
  555      Ser. B, 5.70%, 5/15/08, MBIA 11/04 @ 102   574,430  
AAA
  1,185   Evans & Brant Central Sch. Dist., Ser. C, 3.75%, 12/15/08, FGIC No Opt. Call   1,221,202  
      Fayetteville-Manlius Central Sch. Dist., GO, FGIC,        
AAA
  1,125      3.75%, 6/15/09 No Opt. Call   1,155,285  
AAA
  1,000      4.00%, 6/15/08 No Opt. Call   1,038,790  
AAA
  1,500   Hempstead Township, GO, Ser. B, 4.00%, 8/01/09, MBIA No Opt. Call   1,551,705  
AAA
  1,070   Highland Central Sch. Dist., GO, 3.50%, 6/15/09, FSA No Opt. Call   1,086,639  
AAA
  12,500   Long Island Pwr. Auth., Elec. Sys., 5.00%, 4/01/08, MBIA No Opt. Call   13,386,000  
      Lowville Central Sch. Dist., GO, FGIC,        
AAA
  1,255      3.30%, 6/15/08 No Opt. Call   1,271,215  
AAA
  1,305      3.60%, 6/15/09 No Opt. Call   1,331,230  
      Met. Transp. Auth.,        
AAA
  12,000      Ser. A, 3.50%, 11/15/09, FSA No Opt. Call   12,125,160  
AAA
  26,075      Ser. K, 6.00%, 7/01/08, MBIA ETM   29,232,683  
AAA
  2,500      Commuter Fac. Rev., Ser. A, 6.10%, 7/01/08, MBIA ETM   2,812,125  
AAA
  1,500   Middletown Sch. Dist., GO, Ser. A, 3.00%, 11/01/09, FSA No Opt. Call   1,481,340  
      Monroe Cnty., GO, Pub. Impvt., FGIC,        
AAA
  1,225      4.00%, 3/01/09 No Opt. Call   1,269,247  
AAA
  2,095      4.00%, 3/01/10 No Opt. Call   2,151,020  
      Mt. Sinai Union Free Sch. Dist., AMBAC,        
AAA
  935      6.00%, 2/15/08 No Opt. Call   1,033,586  
AAA
  930      6.10%, 2/15/09 No Opt. Call   1,046,483  
AAA
  1,075      6.10%, 2/15/10 No Opt. Call   1,217,749  
      New Paltz Central Sch. Dist., GO, FGIC,        
AAA
  500      3.125%, 6/01/08 No Opt. Call   503,195  
AAA
  610      3.50%, 6/01/09 No Opt. Call   619,412  
AAA
  3,000   New York, GO, Ser. A, 4.00%, 3/15/09, FSA No Opt. Call   3,109,200  
      New York City, GO,        
AAA
  1,000      Ser. A, 5.20%, 8/01/10, FSA 08/08 @ 101   1,079,280  
AAA
  4,720      Ser. C, 4.75%, 8/15/09, XLCA 08/08 @ 101   5,010,516  
AAA
  12,755      Ser. C, 5.00%, 8/01/08, FSA No Opt. Call   13,668,768  
AAA
  45      Ser. C-1, 6.25%, 8/01/10, FSA 08/04 @ 100   45,158  
AAA
  50      Ser. C-1, 6.375%, 8/01/08, MBIA 08/04 @ 100   50,180  
AAA
  6,895      Ser. E, 6.20%, 8/01/08, MBIA No Opt. Call   7,717,091  
      New York City Hlth. & Hosp. Corp., Hlth. Sys., Ser. A,        
AAA
  2,810      3.75%, 2/15/09, FSA No Opt. Call   2,864,879  
AAA
  2,000      5.00%, 2/15/08, AMBAC No Opt. Call   2,133,660  
      New York City Mun. Wtr. Fin. Auth., Ser. A,        
AAA
  11,500      Zero Coupon, 6/15/09, MBIA No Opt. Call   9,683,000  
AAA
  1,710      6.00%, 6/15/08, FGIC ETM   1,914,875  
      New York City Transl. Fin. Auth.,        
AAA
  4,000      Ser. B, 4.00%, 5/01/09, MBIA No Opt. Call   4,143,960  
AAA
  7,800      Ser. B, 5.25%, 5/01/11, MBIA No Opt. Call   8,576,802  
AAA
  2,000      Ser. C, 5.00%, 8/01/09, FSA ETM   2,177,940  
AAA
  3,300      Ser. C, 5.50%, 2/01/09, FSA No Opt. Call   3,621,948  

See Notes to Financial Statements.

49


BlackRock New York Insured Municipal 2008 Term Trust (BLN) (continued)

  Principal          
  Amount     Option Call    
   Rating1 (000)   Description Provisions2 Value  






 
        LONG-TERM INVESTMENTS (continued)        
        New York Dorm. Auth.,        
AAA
$ 1,965 3    City Univ., Ser. 1, 6.125%, 07/01/04, AMBAC
N/A
$ 2,004,300  
AAA
  1,185 3    City Univ., Ser. 1, 6.125%, 07/01/04, AMBAC
N/A
  1,208,700  
AAA
  1,070      Hosp. Lutheran Medical, 3.00%, 2/01/09, MBIA
No Opt. Call
  1,051,318  
AAA
  1,625      Sch. Dist. Fin., Ser. C, 3.50%, 10/01/08, MBIA
No Opt. Call
  1,650,480  
AAA
  2,970      Secured Hosp., 4.00%, 2/15/09, XLCA
No Opt. Call
  3,059,545  
AAA
  3,500      Secured Hosp., 5.00%, 2/15/10, MBIA 02/08 @ 101.5   3,775,975  
AAA
  5,000      Secured Hosp., 5.125%, 2/15/09, FSA 02/08 @ 101.5   5,362,100  
AAA
  1,600      St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/07, FGIC No Opt. Call   1,726,048  
AAA
  2,500      St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, AMBAC No Opt. Call   2,727,925  
AAA
  5,000      St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, FGIC No Opt. Call   5,455,850  
AAA
  6,000      St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, CONNIE LEE No Opt. Call   6,547,020  
AAA
  5,000      St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/09, AMBAC No Opt. Call   5,516,650  
AAA
  500      W.K. Nursing Home, 5.65%, 8/01/09 08/06 @ 102   527,685  
AAA
  1,000      Winthrop Univ. Hosp. Assoc., Ser. A, 4.125%, 7/01/08, AMBAC No Opt. Call   1,038,910  
      New York Env. Facs. Corp.,        
AAA
  1,630      Clean Wtr. & Drinking, 3.875%, 4/15/10 No Opt. Call   1,673,358  
AAA
  6,000      Mun. Wtr. Proj., 4.00%, 6/15/09 No Opt. Call   6,235,260  
AAA
  2,150 3    PCR, Ser. D, 6.60%, 11/15/04 N/A   2,234,151  
AAA
  2,020 3    PCR, Ser. D, 6.60%, 11/15/04 N/A   2,099,063  
AAA
  830      PCR, Ser. D, 6.60%, 5/15/08 11/04 @ 102   861,714  
      New York Hsg. Fin. Agcy.,        
AAA
  1,345      Hsg. Proj. Mtg., Ser. A, 5.80%, 5/01/09, FSA 05/06 @ 102   1,414,214  
AAA
  4,585      Hsg. Proj. Mtg., Ser. A, 5.80%, 11/01/09, FSA 05/06 @ 102   4,820,119  
AAA
  2,605      Multi-Fam. Mtg. Hsg., Ser. C, 6.30%, 8/15/08 08/04 @ 101   2,606,745  
AAA
  5,000 3 New York Med. Care Fac. Fin. Agcy., New York Hosp., Ser. A, 6.50%, 02/15/05, AMBAC N/A   5,257,750  
AAA
  250   New York Pwr. Auth., Ser. CC, 5.125%, 1/01/11, MBIA ETM   273,998  
      New York Thruway Auth.,        
AAA
  4,955      Ser. A, 3.75%, 3/15/09, MBIA No Opt. Call   5,049,145  
AAA
  2,000      Hwy. & Brdg. Trust Fund, Ser. A, 3.90%, 4/01/09, FSA No Opt. Call   2,062,060  
AAA
  2,000      Hwy. & Brdg. Trust Fund, Ser. B, 4.00%, 4/01/09, MBIA No Opt. Call   2,070,780  
AAA
  2,900      Hwy. & Brdg. Trust Fund, Ser. B, 5.25%, 4/01/11, MBIA No Opt. Call   3,185,621  
AAA
  3,410      Svc. Contract Rev., Local Hwy. & Brdg., Ser. A, 5.375%, 4/01/09, MBIA 04/08 @ 101   3,723,311  
      New York Urban Dev. Corp., Correctional Facs., AMBAC,        
AAA
  2,000      Ser. A, 5.50%, 1/01/09 No Opt. Call   2,191,820  
AAA
  5,140      Svc. Contract Rev., Ser. B, 5.25%, 1/01/10 01/09 @ 101   5,599,465  
AAA
  1,040   Newfane Central Sch. Dist., GO, 3.00%, 6/01/08, FSA No Opt. Call   1,041,882  
      So. Seneca Central Sch. Dist., GO, MBIA,        
AAA
  1,185      3.20%, 6/15/08 No Opt. Call   1,195,938  
AAA
  1,045      3.375%, 6/15/09 No Opt. Call   1,055,314  
AAA
  1,030   Sodus Central Sch. Dist., 4.00%, 6/15/09, FGIC No Opt. Call   1,069,428  
AAA
  5,000   Suffolk Cnty. Ind. Dev. Agcy., 6.00%, 2/01/08, FGIC No Opt. Call   5,516,500  
AAA
  1,675   Suffolk Cnty. Wtr. Auth., Ser. C, 5.75%, 6/01/08, AMBAC ETM   1,679,070  
AAA
  2,265   Triborough Brdg. & Tunl. Auth., Ser. A, 5.125%, 1/01/11, MBIA ETM   2,460,673  
         

 
      Total Long-Term Investments (cost $252,340,937)   266,422,457  
           
 

See Notes to Financial Statements.

50


BlackRock New York Insured Municipal 2008 Term Trust (BLN) (continued)

  Principal        
  Amount        
Rating1 (000)   Description Value  





 
        SHORT-TERM INVESTMENTS—11.2%      
        Georgia—1.1%      
AA+
$ 2,000 4 Mun. Elec. Auth., Proj. 1, Ser. C, 1.04%, 7/07/04, MBIA, FRWD $ 2,000,000  
         

 
        New York—0.2%      
AAA
  300 4 New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., Ser. G, 1.03%, 7/01/04, FGIC, FRDD   300,000  
         

 
               
   
Shares
         
   
(000)
       
   
         
        Money Market Funds—9.9%      
   
9,200
  AIM Tax Free Investment Co. Cash Reserve Portfolio   9,200,000  
   
9,200
  SSgA Tax Free Money Mkt. Fund   9,200,000  
         

 
            18,400,000  
         

 
        Total Short-Term Investments (cost $20,700,000)   20,700,000  
         

 
        Total Investments—155.2% (cost $273,040,937)   287,122,457  
        Other assets in excess of liabilities—4.0%   7,429,357  
        Preferred shares at redemption value, including dividends payable—(59.2)%   (109,577,282 )
         

 
        Net Assets Applicable to Common Shareholders—100% $ 184,974,532  
         

 


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. Rate shown as of June 30, 2004.

Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 87.9% of the Trust’s total investments.

 


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
CONNIE LEE College Construction Loan Insurance Association GO General Obligation
ETM Escrowed to Maturity MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FRDD Floating Rate Daily Demand XLCA XL Capital Assurance
FRWD Floating Rate Weekly Demand      

See Notes to Financial Statements.

51


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock New York Municipal 2018 Term Trust (BLH)

  Principal            
  Amount     Option Call      
Rating1 (000)   Description Provisions2   Value  







 
        LONG-TERM INVESTMENTS—153.5%          
        New York—137.4%          
NR
$
1,320   East Rochester Hsg. Auth., 5.20%, 12/20/24 12/11 @ 101   $ 1,329,425  
BBB
  2,450   Jefferson Cnty. Ind. Dev. Agcy., Sld. Wst. Disp. Rev., 5.20%, 12/01/20 12/13 @ 100     2,299,080  
AAA
  1,900   Long Island Pwr. Auth., Elec. Sys. Rev., Zero Coupon, 6/01/18, FSA No Opt. Call     990,907  
AAA
  5,000   Met. Transp. Auth., Ser. A, 5.125%, 11/15/21, FGIC 11/12 @ 100     5,142,400  
        New York City, GO,          
   
A
  4,000      Ser. B, 5.375%, 12/01/20 12/11 @ 100     4,126,640  
A+
  5,000      Ser. G, 5.75%, 8/01/18 08/12 @ 100     5,349,700  
A-
  4,000   New York City Ind. Dev. Agcy., Civic Fac. Rev., YMCA of Greater New York Proj.,          
         5.25%, 8/01/21 02/11 @ 100     3,994,840  
      New York City Transl. Fin. Auth.,          
AA+
  3,000      Ser. B, 5.00%, 5/01/18 11/11 @ 101     3,097,080  
AA+
  1,895      Ser. C, 5.00%, 5/01/19 05/09 @ 101     1,937,561  
      New York Dorm. Auth.,          
AA
  1,000      Brooklyn Law Sch., Ser. A, 5.50%, 7/01/18, RAA 07/13 @ 100     1,063,620  
AA-
  1,800      City Univ., Ser. A, 5.125%, 7/01/21 07/11 @ 100     1,824,642  
AAA
  1,030 3    Mental Hlth. Svcs., Ser. B, 5.50%, 8/15/11, MBIA N/A     1,161,366  
AAA
  1,590      Mental Hlth. Svcs., Ser. B, 5.50%, 8/15/20, MBIA 08/11 @ 100     1,678,802  
AA-
  3,750      Mental Hlth. Svcs. Facs., Ser. A, 5.00%, 2/15/18 02/08 @ 102     3,812,962  
AA-
  3,230      Upstate Cmnty. Colleges, Ser. A, 5.00%, 7/01/19 07/09 @ 101     3,290,789  
AAA
  1,000      Willow Towers Inc. Proj., 5.25%, 2/01/22 08/12 @ 101     1,020,350  
AA-
  3,500   New York Urban Dev. Corp., Correctional Facs., 5.00%, 1/01/19 01/08 @ 102     3,544,170  
AA
  4,180   Niagra Cnty. Ind. Dev. Agcy., Civic Fac. Rev., Niagra Univ. Proj., Ser. A, 5.35%,          
         11/01/23, RAA 11/11 @ 101     4,264,478  
AA
  4,130   Oneida Hlth. Care Corp., Residential Hlth. Care Proj., 5.30%, 2/01/21 02/11 @ 101     4,256,667  
AA
  3,875   Orange Cnty. Ind. Dev. Agcy., Civic Fac. Rev., St. Lukes Hosp. Newburg Proj.,          
         Ser. A, 5.375%, 12/01/21, RAA 12/11 @ 101     4,025,272  
      Port Auth. of NY & NJ,          
AAA
  3,885 4    Ser. 126, 5.00%, 11/15/18, FGIC 05/12 @ 101     3,967,945  
Caa2
  2,600      Spec. Oblig., Cont’l/Eastern Proj. LaGuardia, 9.125%, 12/01/15 08/04 @ 100     2,637,570  
BBB
  4,000   Rockland Tobacco Asset Sec. Corp., Tobacco Settlement Rev., 5.625%, 8/15/35 08/12 @ 100     3,394,360  
BBB
  3,000   TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 07/12 @ 100     2,661,990  
AAA
  3,710   Westchester Cnty. Ind. Dev. Agy., Civic Fac. Rev., Ser. A, 5.125%, 12/01/22, AMBAC 12/11 @ 102     3,826,754  
             
 
              74,699,370  
             
 
      Delaware—8.0%          
A3
  4,000 5 Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 No Opt. Call     4,353,320  
             
 
      Puerto Rico—8.1%          
   
BBB
  2,000   Children’s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43 05/12 @ 100     1,622,640  
BBB+
  2,500 3 Puerto Rico Pub. Fin. Corp., Ser. E, 5.70%, 2/01/10 N/A     2,793,475  
               
 
                4,416,115  
               
 
        Total Long-Term Investments (cost $81,673,753)       83,468,805  
               
 

See Notes to Financial Statements.

52


BlackRock New York Municipal 2018 Term Trust (BLH) (continued)

  Shares        
  (000) Description Value  




 
           
    MONEY MARKET FUND—1.7%      
 
950
AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $950,000)
$
950,000  
     

 
    Total Investments—155.2% (cost $82,623,753)
84,418,805  
    Other assets in excess of liabilities—2.5%
1,371,544  
    Preferred shares at redemption value, including dividends payable—(57.7)%
(31,400,845 )
     

 
    Net Assets Applicable to Common Shareholders—100%
$
54,389,504  
     

 


1 Using the higher of S&P’s, Moody’s or Fitch’s rating.

2 Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.

3 This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.

4 Entire or partial principal amount pledged as collateral for financial futures contracts.

5 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2004, the Trust held 8.0% of its net assets, with a current market value of $4,353,320, in securities restricted as to resale.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Insurance Association
FSA Financial Security Assurance RAA Radian Asset Assurance

See Notes to Financial Statements.

53


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2004

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

  Principal            
  Amount     Option Call      
Rating1 (000)   Description Provisions2   Value  







 
        LONG-TERM INVESTMENTS—138.0%          
        Pennsylvania—117.2%          
AAA
$
2,150 3,4 Allegheny Cnty. Port Auth., 6.125%, 03/01/09, MBIA
N/A
  $ 2,444,292  
AAA
  1,800   Allegheny Cnty. San. Auth., 5.375%, 12/01/24, MBIA 12/07 @ 102     1,859,904  
BBB+
  1,400   Bucks Cnty. Ind. Dev. Auth., Pennswood Vlg. Proj., Ser. A, 6.00%, 10/01/34 10/12 @ 101     1,412,166  
AAA
  2,500   Delaware Cnty. Hlth. Facs. Auth., Mercy Hlth. Corp. Proj., 6.00%, 12/15/26 ETM     2,692,150  
AAA
  1,250   Delaware Cnty. Ind. Dev. Auth., Wtr. Facs., 6.00%, 6/01/29, FGIC 06/09 @ 101     1,338,388  
      Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp.,          
B3
  1,250      6.00%, 11/01/23 11/08 @ 102     1,119,075  
B3
  1,250      6.20%, 11/01/14 11/09 @ 102     1,216,112  
BBB+
  1,250   Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev., 5.25%, 11/15/28 11/08 @ 101     1,148,525  
      Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A,          
A3
  1,000      6.25%, 11/01/31 05/11 @ 101     1,014,060  
A3
  1,000      6.375%, 11/01/41 05/11 @ 101     1,015,530  
      Pennsylvania Higher Edl. Facs. Auth.,          
AA-
  1,250      Lafayette Coll. Proj., 6.00%, 5/01/30 05/10 @ 100     1,356,725  
AA
  220      Philadelphia Univ., 6.10%, 6/01/30, RAA 06/10 @ 100     233,103  
A
  1,000      Univ. of Pennsylvania Hlth. Svcs., Ser. A, 5.75%, 1/01/22 01/06 @ 101     1,028,150  
      Pennsylvania Hsg. Fin. Agcy., Sngl. Fam. Mtg., GO,          
AA+
  1,110      Ser. 60A, 5.85%, 10/01/27 04/07 @ 101.5     1,124,519  
AA+
  3,200      Ser. 68A, 6.10%, 4/01/21 10/09 @ 100     3,343,328  
AAA
  1,250   Philadelphia Arpt. Sys., Ser. B, 5.40%, 6/15/27, FGIC 06/07 @ 102     1,257,000  
AAA
  1,250   Philadelphia Pkg. Auth., Pkg. Rev., 5.625%, 9/01/18, FSA 09/09 @ 101     1,346,238  
      Philadelphia Sch. Dist., GO,          
AAA
  1,190      Ser. B, 5.50%, 9/01/25, AMBAC 09/05 @ 101     1,235,387  
AAA
  2,800      Ser. C, 5.50%, 3/01/24, MBIA 03/10 @ 100     2,906,372  
AAA
  3,050      Ser. C, 5.75%, 3/01/29, MBIA 03/10 @ 100     3,220,373  
AAA
  2,250   Southeastern Trans. Auth., 5.375%, 3/01/17, FGIC 03/07 @ 102     2,406,802  
AAA
  1,750   Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC No Opt. Call     1,969,940  
             

 
                36,688,139  
             

 
        Maryland—13.9%          
NR
  4,000 5,6 MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 06/09 @ 100     4,349,200  
             

 
        Puerto Rico—6.9%          
BBB+
  2,000   Puerto Rico Pub. Fin. Corp., Ser. E, 5.50%, 8/01/29 02/12 @ 100     2,178,060  
             

 
                   
        Total Long-Term Investments (cost $40,514,712)       43,215,399  
             

 

See Notes to Financial Statements.

54


BlackRock Pennsylvania Strategic Municipal Trust (BPS) (continued)

  Shares        
  (000) Description Value  




 
           
    MONEY MARKET FUNDS—9.9%      
  1,550 AIM Tax Free Investment Co. Cash Reserve Portfolio
$
1,550,000  
  1,550 SSgA Tax Free Money Mkt. Fund   1,550,000  
     

 
    Total Money Market Funds (cost $3,100,000)   3,100,000  
     

 
    Total Investments—147.9% (cost $43,614,712)   46,315,399  
    Other assets in excess of liabilities—8.0%   2,497,062  
    Preferred shares at redemption value, including dividends payable—(55.9)%   (17,502,989 )
     

 
    Net Assets Applicable to Common Shareholders—100%
$
31,309,472  
     

 


1 Using the higher of S&P’s, Moody’s or Fitch’s rating.

2 Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.

3 This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.

4 Entire or partial principal amount pledged as collateral for financial futures contracts.

5 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2004, the Trust held 13.9% of its net assets, with a current market value of $4,349,200, in securities restricted as to resale.

6 Security is deemed to be of investment grade quality by the investment advisor.


KEY TO ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Insurance Association
FSA Financial Security Assurance RAA Radian Asset Assurance

See Notes to Financial Statements.

55


STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
June 30, 2004


 

Insured   Insured               Municipal  
Municipal 2008   Municipal   Municipal 2018   Municipal 2020   Target  
Term Trust   Term Trust   Term Trust   Term Trust   Term Trust  
(BRM)   (BMT)   (BPK)   (BKK)   (BMN)  
 
 
 
 
 
 
Assets                              
Investments at value1 $   714,487,434   $ 446,633,660   $ 376,247,114   $   462,139,182   $   774,518,402  
Cash   470,205     541,194     511,230     542,380     523,709  
Receivable from investments sold   2,335,000     755,000     5,359,850           400,000  
Interest receivable   9,592,702     5,360,099     4,465,025     5,570,000     7,597,349  
Other assets 181,673   123,641   55,707   64,952   169,226  
 
 
 
 
 
 
727,067,014   453,413,594   386,638,926   468,316,514   783,208,686  
 
 
 
 
 
 
Liabilities                                        
Payable for investments purchased               7,316,495     10,084,483        
Variation margin payable               615,250     772,656        
Dividends payable — common shares   1,802,470     1,240,362     1,034,022     1,580,987     1,816,426  
Investment advisory fee payable   207,654     129,319     123,590     186,384     223,951  
Administration fee payable   59,330     36,948                 92,089  
Deferred Directors or Trustees fees   109,219     83,121     22,136       5,429     92,213  
Other accrued expenses 164,373   146,386   120,288   71,931   230,918  
 
 
 
 
 
 
2,343,046   1,636,136   9,231,781   12,701,870   2,455,597  
 
 
 
 
 
 
Preferred Shares at Redemption Value                                        
$25,000 liquidation value per share, including                                        
   dividends payable2,3 271,035,177   170,455,142   137,630,461   177,624,482   299,194,700  
 
 
 
 
 
 
Net Assets Applicable to                                        
Common Shareholders
$
453,688,791  
$
281,322,316   $ 239,776,684  
$
277,990,162  
$
481,558,389  
 


 


 


 


 


 
Composition of Net Assets Applicable to                                        
   Common Shareholders:                                        
      Par value $   272,071   $ 258,856   $ 15,908   $ 20,237   $ 454,106  
      Paid-in capital in excess of par   377,589,494     239,251,319     225,641,716     287,166,281     420,179,598  
      Undistributed (distributions in excess of)                                        
          net investment income   43,500,308     20,978,679     13,243,561     203,814     33,666,406  
      Accumulated net realized gain (loss)   481,030     124,429     675,732     1,123,229     479,036  
      Net unrealized appreciation (depreciation) 31,845,888   20,709,033   199,767   (10,523,399 ) 26,779,243  
 
 
 
 
 
 
Net assets applicable to common shareholders,                                        
   June 30, 2004
$
453,688,791  
$
281,322,316   $ 239,776,684  
$
277,990,162  
$
481,558,389  
 


 


 


 


 


 
Net asset value per common share4     $16.68       $10.87       $15.07       $13.74       $10.60  
 

 

 

 

 

 
1 Investments at cost   $682,641,546     $425,924,627     $374,860,862     $471,172,605     $747,739,159  
2 Preferred shares outstanding   10,840       6,816       5,504       7,104     11,964  
3 Par value per share     0.01       0.01       0.001       0.001       0.01  
4 Common shares outstanding   27,207,093     25,885,639     15,908,028     20,236,628     45,410,639  

See Notes to Financial Statements.

56


      California                     New York         Pennsylvania  
Strategic   Insured   California   Florida Insured   Florida   Insured   New York   Strategic  
Municipal   Municipal 2008   Municipal 2018   Municipal 2008   Municipal 2020   Municipal 2008   Municipal 2018   Municipal  
Trust   Term Trust   Term Trust   Term Trust   Term Trust   Term Trust   Term Trust   Trust  
(BSD)   (BFC)   (BJZ)   (BRF)   (BFO)   (BLN)   (BLH)   (BPS)  

 
 
 
 
 
 
 
 
                                               
$ 168,012,316   $ 272,996,031   $ 146,364,180   $ 217,584,506   $ 124,167,249   $ 287,122,457   $   84,418,805   $   46,315,399  
  518,899     504,578     661,103     536,779     505,087     4,427,540     536,701     1,314,250  
                                280,000           837,500  
  2,350,781     3,260,641     1,603,253     3,206,610     1,549,732     3,610,403     1,223,410     611,443  
48,734   88,118   25,913   61,209   24,983   77,028   23,124   18,096  

 
 
 
 
 
 
 
 
170,930,730   276,849,368   148,654,449   221,389,104   126,247,051   295,517,428   86,202,040   49,096,688  

 
 
 
 
 
 
 
 
                                                               
                                               
  265,219           223,531           207,000           127,219     59,656  
  576,375     669,957     394,023     544,193     417,160     703,568     222,523     149,076  
  48,578     78,821     48,267     63,208     51,263     84,355     28,037     13,662  
        22,520           18,061           24,101              
  21,752     39,340       6,033     31,519       757     42,350       5,416     11,407  
74,712   96,721   56,234   84,738   20,034   111,240   28,496   50,426  

 
 
 
 
 
 
 
 
986,636   907,359   728,088   741,719   696,214   965,614   411,691   284,227  

 
 
 
 
 
 
 
 
                                                               
                                                               
62,013,068   104,571,169   55,528,192   84,165,897   48,905,025   109,577,282   31,400,845   17,502,989  

 
 
 
 
 
 
 
 
                                                               
$ 107,931,026  
$
171,370,840  
$
92,398,169  
$
136,481,488   $ 76,645,812  
$
184,974,532  
$
54,389,504   $ 31,309,472  



 


 


 
 


 


 


 


 
                                                               
                                                               
$   7,242   $ 104,071   $   6,433   $ 87,071   $   5,562   $ 112,571   $   3,633   $   2,015  
  102,593,420     144,174,166     91,213,865     120,583,337     78,885,738     155,947,555     51,482,732     28,362,834  
                                                               
  5,117,369     14,895,258     3,541,348     9,256,973     (203,906 )   14,205,635     2,022,440     1,036,479  
  (4,607,305 )   324,226     (721,717 )   446,371     754,840     627,251     (669,146 )   (677,341 )
4,820,300   11,873,119   (1,641,760 ) 6,107,736   (2,796,422 ) 14,081,520   1,549,845   2,585,485  

 
 
 
 
 
 
 
 
                                                               
$
107,931,026  
$
171,370,840  
$
92,398,169  
$
136,481,488  
$
76,645,812  
$
184,974,532  
$
54,389,504   $ 31,309,472  



 


 


 
 


 


 


 


 
$   14.90   $   16.47   $   14.36   $   15.67   $   13.78   $   16.43   $   14.97   $   15.53  



 


 


 


 


 


 


 


 
                                                               
$ 162,680,386   $ 261,122,912   $ 147,575,043   $ 211,476,770   $ 126,564,817   $ 273,040,937   $ 82,623,753   $ 43,614,712  
    2,480       4,182       2,221       3,366       1,956       4,382       1,256       700  
    0.001       0.01       0.001       0.01       0.001       0.01       0.001       0.001  
  7,242,261     10,407,093     6,433,028     8,707,093     5,562,128     11,257,093     3,633,028     2,015,492  

57


STATEMENTS OF OPERATIONS (unaudited)
For the six months ended June 30, 2004


 

  Insured   Insured               Municipal  
  Municipal 2008   Municipal   Municipal 2018   Municipal 2020   Target  
  Term Trust   Term Trust   Term Trust   Term Trust   Term Trust  
  (BRM)   (BMT)   (BPK)   (BKK)   (BMN)  
 
 
 
 
 
 
Investment Income                        
   Interest Income
$
16,112,253  
$
10,578,421  
$
10,960,349  
$
12,462,551  
$
15,385,588  
 

 

 

 

 

 
Expenses                              
   Investment advisory   1,285,263     802,594     765,018     1,162,676     1,378,928  
   Administration   367,218     229,313             275,786  
   Transfer agent   12,012     9,282     7,462     8,008     12,376  
   Custodian   62,876     51,081     39,523     47,684     64,624  
   Reports to shareholders   49,911     33,037     25,572     22,682     52,868  
   Trustees fees   39,126     20,748     16,562     20,020     35,901  
   Registration   14,792     13,149     14,727     18,359     19,494  
   Independent accountants   23,340     23,438     18,802     20,314     27,981  
   Legal   27,608     22,254     17,937     21,067     37,682  
   Insurance   23,584     14,809     12,729     23,102     25,023  
   Auction agent   360,298     218,484     178,403     230,322     388,509  
   Miscellaneous 38,500   28,684   20,098   21,550   42,200  
 
 
 
 
 
 
          Total expenses   2,304,528     1,466,873     1,116,833     1,595,784     2,361,372  
             Less fees waived by Advisor                    
             Less fees paid indirectly (2,842 ) (2,305 ) (2,244 ) (24,979 ) (2,686 )
 
 
 
 
 
 
Net expenses 2,301,686   1,464,568   1,114,589   1,570,805   2,358,686  
 
 
 
 
 
 
   Net investment income 13,810,567   9,113,853   9,845,760   10,891,746   13,026,902  
 
 
 
 
 
 
Realized and Unrealized Gain (Loss)                              
   Net realized gain (loss) on:                              
          Investments   716,591     125,737     594,740     (969,785 )   452,592  
          Futures     2,117,891   2,575,831    
 
 
 
 
 
 
  716,591   125,737   2,712,631   1,606,046   452,592  
 
 
 
 
 
 
   Net change in unrealized depreciation on:                              
          Investments (21,584,289 ) (14,701,629 ) (11,776,376 ) (16,257,213 ) (17,250,730 )
          Futures     (1,186,485 ) (1,489,976 )  
 
 
 
 
 
 
  (21,584,289 ) (14,701,629 ) (12,962,861 ) (17,747,189 ) (17,250,730 )
 
 
 
 
 
 
Net loss (20,867,698 ) (14,575,892 ) (10,250,230 ) (16,141,143 ) (16,798,138 )
 
 
 
 
 
 
Dividends to Preferred Shareholders                              
   from Net Investment Income (1,223,784 ) (801,156 ) (646,507 ) (872,429 ) (1,335,802 )
 
 
 
 
 
 
Net Decrease in Net Assets                              
   Applicable to Common Shareholders                              
   Resulting from Operations $ (8,280,915 ) $ (6,263,195 ) $ (1,050,977 ) $ (6,121,826 ) $ (5,107,038 )
 

 

 

 

 

 

See Notes to Financial Statements.

58


    California               New York       Pennsylvania  
  Strategic     Insured   California   Florida Insured   Florida   Insured   New York   Strategic  
  Municipal   Municipal 2008   Municipal 2018   Municipal 2008   Municipal 2020   Municipal 2008   Municipal 2018   Municipal  
  Trust   Term Trust   Term Trust   Term Trust   Term Trust   Term Trust   Term Trust   Trust  
  (BSD)   (BFC)   (BJZ)   (BRF)   (BFO)   (BLN)   (BLH)   (BPS)  


 

 

 

 

 

 

 

 
$ 5,049,844   $ 5,680,702   $ 3,763,095   $ 4,415,852   $ 3,227,225   $ 6,296,206   $ 2,255,221   $ 1,297,354  
 
 
 
 
 
 
 
 
 
  524,455     489,327     298,540     392,110     320,043     522,329     174,177     147,890  
      139,808         112,032         149,238          
  7,462     8,554     7,462     8,752     7,826     8,918     7,462     7,462  
  28,084     35,714     20,696     33,758     29,904     41,720     17,283     15,359  
  13,870     18,571     11,339     15,337     11,660     21,174     8,458     5,789  
  7,644     12,922     6,734     10,374     6,552     13,832     6,370     6,188  
  9,675     14,747     11,916     11,722     13,031     14,538     9,676     599  
  16,968     17,687     25,385     16,111     25,486     17,694     25,357     10,662  
  11,275     13,290     7,364     10,212     7,488     13,653     5,369     5,485  
  5,776     8,978     4,891     7,187     6,397     9,609     2,879     1,621  
  82,441     145,713     72,786     117,350     64,340     153,867     42,675     26,417  
  12,163 20,247   15,324   17,542   14,202   21,327   11,223   7,069  
 
 
 
 
 
 
 
 
 
  719,813     925,558     482,437     752,487     506,929     987,899     310,929     234,541  
  (218,523 )                           (61,621 )
  (1,512 ) (2,044 ) (2,369 ) (2,272 ) (26,132 ) (6,412 ) (2,220 ) (3,629 )
 
 
 
 
 
 
 
 
 
  499,778 923,514   480,068   750,215   480,797   981,487   308,709   169,291  
 
 
 
 
 
 
 
 
 
  4,550,066 4,757,188   3,283,027   3,665,637   2,746,428   5,314,719   1,946,512   1,128,063  
 
 
 
 
 
 
 
 
 
  123,082     327,887     6,308     446,371     68,438     625,941         (351,877 )
  751,469   758,571     686,422     438,768   171,840  
 
 
 
 
 
 
 
 
 
  874,551 327,887   764,879   446,371   754,860   625,941   438,768   (180,037 )
 
 
 
 
 
 
 
 
 
  (8,480,467 )   (8,092,605 ) (3,671,692 )   (7,065,122 )   (4,364,743 )   (9,069,385 ) (2,697,973 )   (982,435 )
  (511,630 )   (430,897 )   (398,854 )   (245,207 ) (115,202 )
 
 
 
 
 
 
 
 
 
  (8,992,097 ) (8,092,605 ) (4,102,589 ) (7,065,122 ) (4,763,597 ) (9,069,385 ) (2,943,180 ) (1,097,637 )
 
 
 
 
 
 
 
 
 
  (8,117,546 ) (7,764,718 ) (3,337,710 ) (6,618,751 ) (4,008,737 ) (8,443,444 ) (2,504,412 ) (1,277,674 )
 
 
 
 
 
 
 
 
 
  (289,391 ) (455,461 ) (229,810 ) (382,483 ) (243,612 ) (476,432 ) (132,774 ) (81,487 )
 
 
 
 
 
 
 
 
 
  $ (3,856,871 ) $ (3,462,991 ) $ (284,493 ) $ (3,335,597 ) $ (1,505,921 ) $ (3,605,157 ) $ (690,674 ) $ (231,098 )
 
 

 

 

 

 

 

 

 

59


STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended June 30, 2004 (unaudited), and for the period1 ended December 31, 2003


 

             
  Insured   Insured  
  Municipal 2008 Term Trust   Municipal Term Trust  
  (BRM)   (BMT)  
 
 
 
  2004   2003   2004   2003  
 
 
 
 
 
Increase (Decrease) in Net Assets                
   Applicable to Common Shareholders                
Operations:                
   Net investment income $ 13,810,567   $ 29,010,322   $ 9,113,853   $ 18,665,590  
   Net realized gain (loss)   716,591     2,271,344     125,737     (93,160 )
   Net change in unrealized appreciation/depreciation   (21,584,289 )   (4,173,526 )   (14,701,629 )   2,758,573  
   Dividends and distributions to preferred                        
      shareholders:                        
      Net investment income   (1,223,784 )   (2,080,585 )2   (801,156 )   (1,453,010 )
      Net realized gain   (500,709 )2   (100,766 )
 
 
 
 
 
Net increase (decrease) in net assets resulting                        
   from operations (8,280,915 ) 24,526,846   (6,263,195 ) 19,777,227  
 
 
 
 
 
Dividends and Distributions to Common                        
   Shareholders from:                        
   Net investment income   (10,814,822 )   (27,680,153 )   (7,442,175 )   (16,494,099 )
   Net realized gain   (3,452,580 )   (626,432 )
 
 
 
 
 
Total dividends and distributions (10,814,822 ) (31,132,733 ) (7,442,175 ) (17,120,531 )
 
 
 
 
 
Capital Share Transactions:                        
   Net proceeds from the issuance of common shares                
   Net proceeds from the underwriters’over-allotment                        
      option exercised                
   Underwriting discounts and offering costs relating to                        
      the issuance of preferred shares        
 
 
 
 
 
Net proceeds from capital share transactions        
 
 
 
 
 
Total increase (decrease) (19,095,737 ) (6,605,887 ) (13,705,370 ) 2,656,696  
 
 
 
 
 
Net Assets Applicable to                        
   Common Shareholders                        
Beginning of period 472,784,528   479,390,415   295,027,686   292,370,990  
 
 
 
 
 
End of period $ 453,688,791   $ 472,784,528   $ 281,322,316   $ 295,027,686  
 

 

 

 

 
End of period undistributed (distributions in excess of)                        
   net investment income $ 43,500,308   $ 41,560,348 2 $ 20,978,679   $ 20,108,157  

1 Commencement of investments operations for Municipal 2020 was September 30, 2003. This information includes the initial investments by BlackRock Funding, Inc. The other statements are for a full year.

2 Amount of $167,999 has been reclassified to conform with current period presentation.

See Notes to Financial Statements.

60


Municipal   Municipal   Municipal   Strategic  
2018 Term Trust   2020 Term Trust   Target Term Trust   Municipal Trust  
(BPK)   (BKK)   (BMN)   (BSD)  

 
 
 
 
2004
  2003   2004   2003   2004   2003   2004   2003  

 
 
 
 
 
 
 
 
                               
                               
                               
                               
$ 9,845,760   $ 19,332,822   $ 10,891,746   $ 3,030,188   $ 13,026,902   $ 28,246,587   $ 4,550,066   $ 8,932,544  
  2,712,631     980,317     1,606,046     (482,817 )   452,592     594,145     874,551     (2,846,500 )
  (12,962,861 )   7,230,936     (17,747,189 )   7,223,790     (17,250,730 )   (7,445,940 )   (8,992,097 )   7,762,221  
                                               
                                               
  (646,507 )   (1,336,973 )   (872,429 )   (212,799 )   (1,335,802 )   (2,708,216 )   (289,391 )   (595,299 )
          (126,993 )    

 
 
 
 
 
 
 
 
                                               
(1,050,977 ) 26,207,102   (6,121,826 ) 9,558,362   (5,107,038 ) 18,559,583   (3,856,871 ) 13,252,966  

 
 
 
 
 
 
 
 
                                               
                                               
  (6,204,131 )   (12,408,248 )   (9,485,919 )   (3,161,973 )   (11,617,587 )   (26,110,995 )   (3,458,252 )   (6,727,394 )
          (1,117,102 )    

 
 
 
 
 
 
 
 
(6,204,131 ) (12,408,248 ) (9,485,919 ) (3,161,973 ) (11,617,587 ) (27,228,097 ) (3,458,252 ) (6,727,394 )

 
 
 
 
 
 
 
 
                                               
              264,587,501                  
                                               
              24,710,337                  
                                               
      (2,096,320 )        

 
 
 
 
 
 
 
 
      287,201,518          

 
 
 
 
 
 
 
 
(7,255,108 ) 13,798,854   (15,607,745 ) 293,597,907   (16,724,625 ) (8,668,514 ) (7,315,123 ) 6,525,572  

 
 
 
 
 
 
 
 
                                               
                                               
247,031,792   233,232,938   293,597,907     498,283,014   506,951,528   115,246,149   108,720,577  

 
 
 
 
 
 
 
 
$ 239,776,684   $ 247,031,792   $ 277,990,162   $ 293,597,907   $ 481,558,389   $ 498,283,014   $ 107,931,026   $ 115,246,149  


 

 

 

 

 

 

 

 
                                               
$ 13,243,561   $ 10,248,439   $ 203,814   $ (329,584 ) $ 33,666,406   $ 33,592,893   $ 5,117,369   $ 4,314,946  

61


STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended June 30, 2004 (unaudited), and for the period1 ended December 31, 2003


 

  California Insured   California  
  Municipal 2008 Term Trust   Municipal 2018 Term Trust  
  (BFC)   (BJZ)  
 
 
 
  2004   2003   2004   2003  
 
 
 
 
 
Increase (Decrease) in Net Assets                
   Applicable to Common Shareholders                
Operations:                
   Net investment income $ 4,757,188   $ 9,941,378   $ 3,283,027   $ 6,733,378  
   Net realized gain (loss)   327,887     643,694     764,879     35,456  
   Net change in unrealized appreciation/depreciation   (8,092,605 )   (70,777 )   (4,102,589 )   (368,473 )
   Dividends and distributions to preferred                        
      shareholders:                        
      Net investment income   (455,461 )   (692,786 )   (229,810 )   (468,828 )
      Net realized gain   (124,259 )    
 
 
 
 
 
Net increase (decrease) in net assets resulting                        
   from operations (3,462,991 ) 9,697,250   (284,493 ) 5,931,533  
 
 
 
 
 
Dividends and Distributions to                        
   Common Shareholders from:                        
   Net investment income   (4,019,741 )   (10,396,554 )   (2,364,138 )   (4,728,270 )
   Net realized gains   (944,964 )    
 
 
 
 
 
Total dividends and distributions (4,019,741 ) (11,341,518 ) (2,364,138 ) (4,728,270 )
 
 
 
 
 
Capital Share Transactions:                        
   Net proceeds from the issuance of common shares                
   Net proceeds from the underwriter’s over-allotment                        
      option exercised                
   Underwriting discounts and offering costs relating to                        
      the issuance of preferred shares        
 
 
 
 
 
   Net proceeds from capital share transactions        
 
 
 
 
 
Total increase (decrease) (7,482,732 ) (1,644,268 ) (2,648,631 ) 1,203,263  
 
 
 
 
 
Net Assets Applicable to                        
   Common Shareholders                        
Beginning of period 178,853,572   180,497,840   95,046,800   93,843,537  
 
 
 
 
 
End of period $ 171,370,840   $ 178,853,572   $ 92,398,169   $ 95,046,800  
 

 

 

 

 
End of period undistributed (distributions in excess of)                        
   net investment income $ 14,895,258   $ 14,613,272   $ 3,541,348   $ 2,852,269  

1 Commencement of investments operations for Florida 2020 was September 30, 2003. This information includes the initial investments by BlackRock Funding, Inc. The other statements are for a full year.

See Notes to Financial Statements.

62


Florida Insured   Florida Municipal   New York Insured   New York  
Municipal 2008 Term Trust   2020 Term Trust   Municipal 2008 Term Trust   Municipal 2018 Term Trust  
(BRF)   (BFO)   (BLN)   (BLH)  

 
 
 
 
2004
  2003   2004   2003   2004   2003   2004   2003  

 
 
 
 
 
 
 
 
                               
                               
                               
                               
$ 3,665,637   $ 7,696,083   $ 2,746,428   $ 674,808   $ 5,314,719   $ 11,293,701   $ 1,946,512   $ 3,831,760  
  446,371     278,399     754,860     (20 )   625,941     456,767     438,768     (431,368 )
  (7,065,122 )   833,697     (4,763,597 )   1,967,175     (9,069,385 )   (1,012,048 )   (2,943,180 )   1,090,916  
                                               
                                               
  (382,483 )   (555,799 )   (243,612 )   (59,253 )   (476,432 )   (917,968 )   (132,774 )   (286,897 )
  (157,394 )       (56,470 )    

 
 
 
 
 
 
 
 
                                               
(3,335,597 ) 8,094,986   (1,505,921 ) 2,582,710   (3,605,157 ) 9,763,982   (690,674 ) 4,204,411  

 
 
 
 
 
 
 
 
                                               
                                               
  (3,265,161 )   (7,050,777 )   (2,502,958 )   (834,319 )   (4,221,411 )   (8,839,915 )   (1,335,138 )   (2,670,425 )
  (882,029 )       (460,415 )    

 
 
 
 
 
 
 
 
(3,265,161 ) (7,932,806 ) (2,502,958 ) (834,319 ) (4,221,411 ) (9,300,330 ) (1,335,138 ) (2,670,425 )

 
 
 
 
 
 
 
 
                                               
              71,605,000                  
                                               
              7,920,860                  
                                               
      (619,560 )        

 
 
 
 
 
 
 
 
      78,906,300          

 
 
 
 
 
 
 
 
(6,600,758 ) 162,180   (4,008,879 ) 80,654,691   (7,826,568 ) 463,652   (2,025,812 ) 1,533,986  

 
 
 
 
 
 
 
 
                                               
                                               
143,082,246   142,920,066   80,654,691     192,801,100   192,337,448   56,415,316   54,881,330  

 
 
 
 
 
 
 
 
$ 136,481,488   $ 143,082,246   76,645,812   $ 80,654,691   $ 184,974,532   $ 192,801,100   $ 54,389,504   $ 56,415,316  


 

 

 

 

 

 

 

 
                                               
$ 9,256,973   $ 9,238,980   $ (203,906 ) $ (203,764 ) $ 14,205,635   $ 13,588,759   $ 2,022,440   $ 1,543,840  

63


STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended June 30, 2004 (unaudited), and for the year ended December 31, 2003


 

  Pennsylvania  
  Strategic Municipal Trust  
  (BPS)  
 
 
  2004   2003  
 
 
 
Increase (Decrease) in Net Assets        
   Applicable to Common Shareholders        
Operations:        
   Net investment income $ 1,128,063   $ 2,260,273  
   Net realized gain (loss)   (180,037 )   176,317  
   Net change in unrealized appreciation/depreciation   (1,097,637 )   437,910  
   Dividends to preferred shareholders from net            
      investment income (81,487 ) (147,231 )
 
 
 
Net increase (decrease) in net assets resulting            
   from operations (231,098 ) 2,727,269  
 
 
 
Dividends to Common Shareholders from            
   Net Investment Income: (894,455 ) (1,746,005 )
 
 
 
Total increase (decrease) (1,125,553 ) 981,264  
 
 
 
Net Assets Applicable to            
   Common Shareholders            
Beginning of period 32,435,025   31,453,761  
 
 
 
End of period $ 31,309,472   $ 32,435,025  
 

 

 
End of period undistributed net investment income $ 1,036,479   $ 884,358  

See Notes to Financial Statements.

64


FINANCIAL HIGHLIGHTS

BlackRock Insured Municipal 2008 Term Trust (BRM)

                       
  Six Months Ended   Year Ended December 31,  
 
June 30, 2004
 
 
  (unaudited)   2003   2002   20011   2000 1   1999 1  
 
 
 
 
 
 
 
PER COMMON SHARE OPERATING                        
   PERFORMANCE:                        
Net asset value, beginning of period $ 17.38   $ 17.62   $ 16.80   $ 16.62   $ 16.00   $ 17.06  
 

 

 

 

 

 

 
Investment operations:                                    
   Net investment income   0.51     1.07     1.26     1.33     1.30     1.21  
   Net realized and unrealized gain (loss)   (0.77 )   (0.07 )   0.53     (0.08 )   0.54     (1.23 )
   Dividends and distributions to preferred                                    
      shareholders:                                    
      Net investment income   (0.04 )   (0.08 )   (0.13 )   (0.27 )   (0.38 )   (0.24 )
      Net realized gain on investments   (0.01 ) (0.01 )      
 
 
 
 
 
 
 
Net increase (decrease) from investment                                    
      operations (0.30 ) 0.91   1.65   0.98   1.46   (0.26 )
 
 
 
 
 
 
 
Dividends and distributions to common                                    
   shareholders:                                    
   Net investment income   (0.40 )   (1.02 )   (0.79 )   (0.80 )   (0.80 )   (0.80 )
   Net realized gain   (0.13 ) (0.04 )      
 
 
 
 
 
 
 
Total dividends and distributions (0.40 ) (1.15 ) (0.83 ) (0.80 ) (0.80 ) (0.80 )
 
 
 
 
 
 
 
Capital charges with respect to issuance of                                    
   preferred shares         (0.04 )  
 
 
 
 
 
 
 
Net asset value, end of period $ 16.68   $ 17.38   $ 17.62   $ 16.80   $ 16.62   $ 16.00  
 

 

 
 

 

 

 
Market price, end of period $ 16.15   $ 17.27   $ 16.58   $ 15.70   $ 14.88   $ 13.75  
 

 

 
 

 

 

 
TOTAL INVESTMENT RETURN2 (4.26 )% 11.29 % 11.15 % 11.06 % 14.40 % (10.14 )%
 
 
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                                    
   OF COMMON SHAREHOLDERS:3                                    
Expenses after fees paid indirectly   0.99 %4   0.98 %   0.98 %   1.01 %   1.05 %   0.93 %
Expenses before fees paid indirectly   0.99 %4   0.98 %   0.98 %   1.02 %   1.05 %   0.93 %
Net investment income before preferred                                    
   share dividends   5.94 %4   6.03 %   7.34 %   7.87 %   8.06 %   7.30 %
Preferred share dividends   0.53 %4   0.47 %   0.73 %   1.60 %   2.40 %   1.47 %
Net investment income available to common                                    
   shareholders   5.41 %4   5.56 %   6.61 %   6.27 %   5.66 %   5.83 %
SUPPLEMENTAL DATA:                                    
Average net assets of common                                    
   shareholders (000) $ 467,472   $ 480,887   $ 468,417   $ 460,153   $ 438,958   $ 452,317  
Portfolio turnover   3 %   18 %   23 %   3 %   3 %   1 %
Net assets of common shareholders,                                    
   end of period (000) $ 453,689   $ 472,785   $ 479,390   $ 457,070   $ 452,057   $ 435,314  
Preferred shares outstanding (000) $ 271,000   $ 271,000   $ 271,000   $ 271,000   $ 271,000   $ 206,000  
Asset coverage per preferred share,                                    
   end of period $ 66,856   $ 68,622   $ 69,235   $ 67,178   $ 66,735   $ 77,857  



1 Amounts have been restated to conform to the presentation under the provision of EITF D-98.

2 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

3 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.

4 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

65


FINANCIAL HIGHLIGHTS

BlackRock Insured Municipal Term Trust (BMT)

                       
  Six Months Ended   Year Ended December 31,  
 
June 30, 2004
 
 
  (unaudited)   2003   2002   20011   2000 1   1999 1  
 
 
 
 
 
 
 
PER COMMON SHARE OPERATING                        
   PERFORMANCE:                        
Net asset value, beginning of period $ 11.40   $ 11.29   $ 10.85   $ 10.85   $ 10.60   $ 11.22  
 

 

 

 

 

 

 
Investment operations:                                    
   Net investment income   0.35     0.73     0.81     0.89     0.89     0.85  
   Net realized and unrealized gain (loss)   (0.56 )   0.10     0.41     (0.12 )   0.28     (0.68 )
   Dividends and distributions to preferred                                    
      shareholders:                                    
      Net investment income   (0.03 )   (0.06 )   (0.08 )   (0.18 )   (0.26 )   (0.17 )
      Net realized gain on investments     (0.02 ) (0.01 ) (0.01 )  
 
 
 
 
 
 
 
Net increase (decrease) from                                    
   investment operations (0.24 ) 0.77   1.12   0.58   0.90   0.00  
 
 
 
 
 
 
 
Dividends and distributions to common                                    
   shareholders:                                    
   Net investment income   (0.29 )   (0.64 )   (0.58 )   (0.57 )   (0.60 )   (0.62 )
   Net realized gain   (0.02 ) (0.10 ) (0.02 ) (0.02 )  
 
 
 
 
 
 
 
Total dividends and distributions (0.29 ) (0.66 ) (0.68 ) (0.59 ) (0.62 ) (0.62 )
 
 
 
 
 
 
 
Capital changes with respect to issuance of                                    
   preferred shares       0.01   (0.03 )  
 
 
 
 
 
 
 
Net asset value, end of period $ 10.87   $ 11.40   $ 11.29   $ 10.85   $ 10.85   $ 10.60  
 

 

 
 

 

 

 
Market price, end of period $ 10.79   $ 11.06   $ 10.94   $ 10.63   $ 10.44   $ 9.44  
 

 

 
 

 

 

 
TOTAL INVESTMENT RETURN2 0.10 % 7.28 % 9.51 % 7.73 % 17.81 % (12.92 )%
 
 
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                                    
   OF COMMON SHAREHOLDERS:3                                    
Expenses after fees paid indirectly   1.01 %4   1.02 %   1.05 %   1.06 %   1.11 %   0.94 %
Expenses before fees paid indirectly   1.01 %4   1.02 %   1.06 %   1.06 %   1.11 %   0.94 %
Net investment income before preferred                                    
   share dividends   6.30 %4   6.36 %   7.32 %   8.12 %   8.40 %   7.74 %
Preferred share dividends   0.55 %4   0.50 %   0.70 %   1.68 %   2.44 %   1.51 %
Net investment income available to common                                    
   shareholders   5.75 %4   5.86 %   6.62 %   6.44 %   5.96 %   6.23 %
SUPPLEMENTAL DATA:                                    
Average net assets of common                                    
   shareholders (000) $ 290,745   $ 293,334   $ 287,692   $ 284,390   $ 274,553   $ 284,075  
Portfolio turnover   1 %   11 %   36 %   7 %   14 %   0 %
Net assets of common shareholders,                                    
   end of period (000) $ 281,322     295,028   $ 292,371   $ 280,743   $ 280,965   $ 274,320  
Preferred shares outstanding (000) $ 170,400     170,400   $ 170,400   $ 170,400   $ 170,400   $ 130,000  
Asset coverage per preferred share,                                    
   end of period $ 66,282   $ 68,288   $ 67,895   $ 66,195   $ 66,242   $ 77,768  

 


1 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

2 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

3 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.

4 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

66


FINANCIAL HIGHLIGHTS

BlackRock Municipal 2018 Term Trust (BPK)

               
            For the period  
  Six Months Ended   Year Ended December 31,   October 30, 20011  
 
June 30, 2004
 
 
through
 
  (unaudited)   2003   2002   December 31, 20012,3  
 
 
 
 
 
PER COMMON SHARE OPERATING PERFORMANCE:                
Net asset value, beginning of period $ 15.53   $ 14.66   $ 13.66  
$
14.33 4
 

 

 

 

 
Investment operations:                        
   Net investment income   0.62     1.21     1.17     0.10  
   Net realized and unrealized gain (loss)   (0.65 )   0.52     0.73     (0.55 )
   Dividends to preferred shareholders from net investment                        
      income (0.04 ) (0.08 ) (0.12 ) (0.01 )
 
 
 
 
 
Net increase (decrease) from investment operations (0.07 ) 1.65   1.78   (0.46 )
 
 
 
 
 
Dividends to common shareholders from                        
   net investment income (0.39 ) (0.78 ) (0.78 ) (0.07 )
 
 
 
 
 
Capital charges with respect to issuance of:                        
   Common shares               (0.03 )
   Preferred shares       (0.11 )
 
 
 
 
 
Total capital charges       (0.14 )
 
 
 
 
 
Net asset value, end of period $ 15.07   $ 15.53   $ 14.66  
$
13.66  
 

 

 

 

 
Market price, end of period $ 14.12   $ 14.36   $ 13.43  
$
13.06  
 

 

 

 

 
TOTAL INVESTMENT RETURN5 0.99 % 12.92 % 8.84
%
  (12.51 )%
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                        
   OF COMMON SHAREHOLDERS:6                        
Expenses after fees paid indirectly   0.91 %7   0.93 %   0.92
%
  0.93 %7
Expenses before fees paid indirectly   0.91 %7   0.94 %   0.94
%
  0.93 %7
Net investment income before preferred share dividends   8.02 %7   8.21 %   8.14
%
  4.39 %7
Preferred share dividends   0.53 %7   0.57 %   0.84
%
  0.28 %7
Net investment income available to common shareholders   7.49 %7   7.64 %   7.30
%
  4.11 %7
SUPPLEMENTAL DATA:                        
Average net assets of common shareholders (000) $ 247,011   $ 235,575   $ 227,674   $ 206,486  
Portfolio turnover   8 %   15 %   53
%
  0 %
Net assets of common shareholders, end of period (000) $ 239,777   $ 247,032   $ 233,233   $ 217,229  
Preferred shares outstanding (000) $ 137,600   $ 137,600   $ 137,600   $ 137,600  
Asset coverage per preferred share, end of period $ 68,570   $ 69,887   $ 67,381   $ 64,485  


1 Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.

2 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

3 Calculated using the average shares outstanding method.

4 Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.

5 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

6 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

7 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

67


FINANCIAL HIGHLIGHTS

BlackRock Municipal 2020 Term Trust (BKK)

          For the period  
    Six Months Ended   September 30, 20031  
    June 30, 2004   through  
    (unaudited)   December 31, 2003  
   
 
 
PER COMMON SHARE OPERATING PERFORMANCE:              
Net asset value, beginning of period  
$
14.51   $   14.33 2
   
 


 
Investment operations:                  
   Net investment income       0.54       0.15  
   Net realized and unrealized gain (loss)       (0.80 )     0.25  
   Dividends to preferred shareholders from net investment income     (0.04 )   (0.01 )
     
   
 
Net increase (decrease) from investment operations     (0.30 )   0.39  
     
   
 
Dividends to common shareholders from net investment income     (0.47 )   (0.16 )
     
   
 
Capital charges with respect to issuance of:                  
   Common shares             (0.03 )
   Preferred shares         (0.02 )
     
   
 
Total capital charges         (0.05 )
     
   
 
Net asset value, end of period     $ 13.74    
$
14.51  
     

   

 
Market price, end of period     $ 13.88    
$
15.00  
     

   

 
TOTAL INVESTMENT RETURN3     (4.48 )%   1.05 %
     
   
 
RATIOS TO AVERAGE NET ASSETS                  
   OF COMMON SHAREHOLDERS:4, 5                  
Expenses after fees paid indirectly       1.09 %     0.85 %
Expenses before fees paid indirectly       1.11 %     0.87 %
Net investment income before preferred share dividends       7.55 %     4.25 %
Preferred share dividends       0.60 %     0.30 %
Net investment income available to common shareholders       6.95 %     3.95 %
SUPPLEMENTAL DATA:                  
Average net assets of common shareholders (000)   $ 290,026  
$
279,827  
Portfolio turnover       25 %
  17 %
Net assets of common shareholders, end of period (000)   $ 277,990  
$
293,598  
Preferred shares outstanding (000)   $ 177,600  
$
177,600  
Asset coverage per preferred share, end of period   $   64,135  
$
66,332  

 


1 Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.

2 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.

3 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

4 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

5 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

68


FINANCIAL HIGHLIGHTS

BlackRock Municipal Target Term Trust (BMN)

                       
  Six Months Ended   Year Ended December 31,  
 
June 30, 2004
 
 
  (unaudited)   2003   2002   20011   2000 1   1999 1  
 
 
 
 
 
 
 
PER COMMON SHARE OPERATING                        
   PERFORMANCE:                        
Net asset value, beginning of period $ 10.97   $ 11.16   $ 10.57   $ 10.67   $ 10.60   $ 11.21  
 

 

 

 

 

 

 
Investment operations:                                    
   Net investment income   0.29     0.62     0.70     0.83     0.90     0.85  
   Net realized and unrealized gain (loss)   (0.37 )   (0.16 )   0.62     (0.10 )   0.05     (0.68 )
   Dividends and distributions to preferred                                    
      shareholders:                                    
      Net investment income   (0.03 )   (0.06 )   (0.08 )   (0.17 )   (0.26 )   (0.16 )
      Net realized gain     (0.01 ) (0.02 )    
 
 
 
 
 
 
 
Net increase (decrease) from                                    
   investment operations (0.11 ) 0.40   1.23   0.54   0.69   0.01  
 
 
 
 
 
 
 
Dividends and distributions to common                                    
   shareholders:                                    
   Net investment income   (0.26 )   (0.57 )   (0.60 )   (0.58 )   (0.60 )   (0.62 )
   Net realized gain   (0.02 ) (0.04 ) (0.06 )    
 
 
 
 
 
 
 
Total dividends and distributions (0.26 ) (0.59 ) (0.64 ) (0.64 ) (0.60 ) (0.62 )
 
 
 
 
 
 
 
Capital charges with respect to issuance of                                    
   preferred shares         (0.02 )  
 
 
 
 
 
 
 
Net asset value, end of period $ 10.60   $ 10.97   $ 11.16   $ 10.57   $ 10.67   $ 10.60  
 

 

 

 

 

 

 
Market price, end of period $ 10.65   $ 10.95   $ 11.01   $ 10.40   $ 9.94   $ 9.81  
 

 

 

 

 

 

 
TOTAL INVESTMENT RETURN2 (0.45 )% 4.99 % 12.28 % 11.16 % 7.63 % (8.43 )%
 
 
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                                    
   OF COMMON SHAREHOLDERS:3                                    
Expenses after fees paid indirectly   0.96 %4   0.96 %   0.97 %   0.96 %   1.00 %   0.87 %
Expenses before fees paid indirectly   0.96 %4   0.96 %   0.97 %   0.98 %   1.00 %   0.87 %
Net investment income before preferred share                                    
   dividends   5.31 %4   5.60 %   6.44 %   7.73 %   8.61 %   7.72 %
Preferred share dividends   0.54 %4   0.54 %   0.75 %   1.57 %   2.48 %   1.49 %
Net investment income available to common                                    
   shareholders   4.77 %4   5.06 %   5.69 %   6.16 %   6.13 %   6.23 %
SUPPLEMENTAL DATA:                                    
Average net assets of common shareholders (000) $ 493,189   $ 504,660   $ 494,694   $ 489,251   $ 477,169   $ 497,324  
Portfolio turnover   0 %   4 %   18 %   42 %   5 %   4 %
Net assets of common shareholders,                                    
   end of period (000) $ 481,558   $ 498,283   $ 506,952   $ 480,172   $ 484,646   $ 481,463  
Preferred shares outstanding (000) $ 299,100   $ 299,100   $ 299,100   $ 299,100   $ 299,100   $ 225,000  
Asset coverage per preferred share,                                    
   end of period $ 65,259   $ 66,654   $ 67,379   $ 65,141   $ 65,530   $ 78,514  

 


1 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

2 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

3 Ratios calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

4 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data, for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

69


FINANCIAL HIGHLIGHTS

BlackRock Strategic Municipal Trust (BSD)

                      For the period  
                      August 25,  
  Six Months                   19991  
  Ended   Year Ended December 31,   through  
  June 30, 2004  
December 31,
 
  (unaudited)   2003   2002   20012   20002   19992  
 
 
 
 
 
 
 
PER COMMON SHARE                        
   OPERATING PERFORMANCE:                        
Net asset value, beginning of period $ 15.91   $ 15.01   $ 14.33   $ 14.75   $ 13.39   $ 14.33 3
 

 

 

 

 

 

 
Investment operations:                                    
   Net investment income   0.63     1.23     1.26     1.25     1.22     0.30  
   Net realized and unrealized gain (loss)   (1.12 )   0.68     0.42     (0.58 )   1.41     (0.79 )
   Dividends to preferred shareholders                                    
      from net investment income (0.04 ) (0.08 ) (0.12 ) (0.23 ) (0.36 )4 (0.06 )
 
 
 
 
 
 
 
Net increase (decrease) from investment                                    
   operations (0.53 ) 1.83   1.56   0.44   2.27   (0.55 )
 
 
 
 
 
 
 
Dividends to common shareholders                                    
   from net investment income (0.48 ) (0.93 ) (0.88 ) (0.86 ) (0.91 )4 (0.23 )
 
 
 
 
 
 
 
Capital charges with respect to issuance of:                                    
   Common shares                       (0.03 )
   Preferred shares           (0.13 )
 
 
 
 
 
 
 
Total capital charges           (0.16 )
 
 
 
 
 
 
 
Net asset value, end of period $ 14.90   $ 15.91   $ 15.01   $ 14.33   $ 14.75   $ 13.39  
 

 

 

 

 

 

 
Market price, end of period $ 13.35   $ 14.69   $ 13.78   $ 13.58   $ 13.69   $ 12.50  
 

 

 

 

 

 

 
TOTAL INVESTMENT RETURN5 (6.08 )% 13.75 % 8.03 % 5.32 % 17.44 % (15.17 )%
 
 
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                                    
   OF COMMON SHAREHOLDERS:6                                    
Expenses after fees waived and paid                                    
   indirectly   0.88 %7   0.91 %   0.98 %   0.91 %   0.90 %   0.94 %7
Expenses before fees waived and paid                                    
   indirectly   1.27 %7   1.30 %   1.39 %   1.31 %   1.30 %   1.35 %7
Net investment income before                                    
   preferred share dividends   8.04 %7   8.09 %   8.54 %   8.40 %   8.86 %   6.24 %7
Preferred share dividends   0.51 %7   0.54 %   0.78 %   1.58 %   2.60 %   1.16 %7
Net investment income available to                                    
   common shareholders   7.53 %7   7.55 %   7.76 %   6.82 %   6.26 %   5.08 %7
SUPPLEMENTAL DATA:                                    
Average net assets of common                                    
   shareholders (000) $ 113,779   $ 110,385   $ 106,807   $ 107,381   $ 100,171   $ 98,300  
Portfolio turnover   2 %   8 %   13 %   4 %   44 %   4 %
Net assets of common shareholders,                                    
   end of period (000) $ 107,931   $ 115,246   $ 108,721   $ 103,783   $ 106,833   $ 96,971  
Preferred shares outstanding (000) $ 62,000   $ 62,000   $ 62,000   $ 62,000   $ 62,000   $ 62,000  
Asset coverage per preferred share,                                    
   end of period $ 68,526   $ 71,476   $ 68,844   $ 66,855   $ 68,092   $ 64,109  

 


1 Commencement of investment operations. This information includes the initial investments by BlackRock Financial Management, Inc.

2 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

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 Amounts have been reclassified to conform with current period presentation.

5 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

6 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

7 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

70


FINANCIAL HIGHLIGHTS

BlackRock California Insured Municipal 2008 Term Trust (BFC)

                       
  Six Months Ended   Year Ended December 31,  
 
June 30, 2004
 
 
  (unaudited)   2003   2002   20011   2000 1   1999 1  
 
 
 
 
 
 
 
PER COMMON SHARE OPERATING                        
   PERFORMANCE:                        
Net asset value, beginning of period $ 17.19   $ 17.34   $ 16.77   $ 16.72   $ 16.11   $ 17.12  
 

 

 

 

 

 

 
Investment operations:                                    
   Net investment income   0.45     0.96     1.18     1.27     1.27     1.17  
   Net realized and unrealized gain (loss)   (0.74 )   0.06     0.48     (0.19 )   0.52     (1.20 )
   Dividends and distributions to preferred                                    
      shareholders:                                    
      Net investment income   (0.04 )   (0.07 )   (0.11 )   (0.24 )   (0.35 )   (0.21 )
      Net realized gain   (0.01 ) (0.03 ) (0.01 )    
 
 
 
 
 
 
 
Net increase (decrease) from investment                                    
   operations (0.33 ) 0.94   1.52   0.83   1.44   (0.24 )
 
 
 
 
 
 
 
Dividends and distributions to common                                    
   shareholders:                                    
   Net investment income   (0.39 )   (1.00 )   (0.81 )   (0.77 )   (0.77 )   (0.77 )
   Net realized gain   (0.09 ) (0.14 ) (0.02 )    
 
 
 
 
 
 
 
Total dividends and distributions (0.39 ) (1.09 ) (0.95 ) (0.79 ) (0.77 ) (0.77 )
 
 
 
 
 
 
 
Capital changes with respect to issuance of                                    
   preferred shares       0.01   (0.06 )  
 
 
 
 
 
 
 
Net asset value, end of period $ 16.47   $ 17.19   $ 17.34   $ 16.77   $ 16.72   $ 16.11  
 

 

 
 

 

 

 
Market price, end of period $ 15.86   $ 17.09   $ 16.44   $ 15.90   $ 15.63   $ 13.88  
 

 

 
 

 

 

 
TOTAL INVESTMENT RETURN2 (5.02 )% 10.90 % 9.56 % 7.06 % 18.68 % (8.40 )%
 
 
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                                    
   OF COMMON SHAREHOLDERS:3                                    
Expenses after fees paid indirectly   1.05 %4   1.04 %   1.05 %   1.08 %   1.11 %   0.98 %
Expenses before fees paid indirectly   1.05 %4   1.04 %   1.06 %   1.09 %   1.11 %   0.98 %
Net investment income before preferred share                                    
   dividends   5.42 %4   5.51 %   6.91 %   7.57 %   7.74 %   7.01 %
Preferred share dividends   0.52 %4   0.38 %   0.64 %   1.45 %   2.14 %   1.25 %
Net investment income available to                                    
   common shareholders   4.90 %4   5.13 %   6.27 %   6.12 %   5.60 %   5.76 %
SUPPLEMENTAL DATA:                                    
Average net assets of common                                    
   shareholders (000) $ 176,602   $ 180,408   $ 177,861   $ 176,424   $ 170,286   $ 174,070  
Portfolio turnover   0 %   15 %   33 %   5 %   0 %   0 %
Net assets of common shareholders,                                    
   end of period (000) $ 171,371   $ 178,854   $ 180,498   $ 174,487   $ 173,974   $ 167,672  
Preferred shares outstanding (000) $ 104,550   $ 104,550   $ 104,550   $ 104,550   $ 104,550   $ 78,000  
Asset coverage per preferred share,                                    
   end of period $ 65,983   $ 67,776   $ 68,161   $ 66,735   $ 66,629   $ 78,765  

 


1 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

2 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

3 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.

4 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

71


FINANCIAL HIGHLIGHTS

BlackRock California Municipal 2018 Term Trust (BJZ)

               
            For the period  
  Six Months Ended   Year Ended December 31,   October 30, 20011  
 
June 30, 2004
 
 
through
 
  (unaudited)   2003   2002   December 31, 2001 2,3  
 
 
 
 
 
PER COMMON SHARE OPERATING PERFORMANCE:                
Net asset value, beginning of period $ 14.77   $ 14.59   $ 13.63   $ 14.33 4
 

 

 

 

 
Investment operations:                        
   Net investment income   0.51     1.04     1.03     0.09  
   Net realized and unrealized gain (loss)   (0.51 )   (0.06 )   0.78     (0.57 )
   Dividends to preferred shareholders from                        
      net investment income (0.04 ) (0.07 ) (0.11 ) (0.01 )
 
 
 
 
 
Net increase (decrease) from investment operations (0.04 ) 0.91   1.70   (0.49 )
 
 
 
 
 
Dividends to common shareholders from net investment income (0.37 ) (0.73 ) (0.74 ) (0.06 )
 
 
 
 
 
Capital charges with respect to issuance of:                        
   Common shares               (0.03 )
   Preferred shares       (0.12 )
 
 
 
 
 
Total capital charges       (0.15 )
 
 
 
 
 
Net asset value, end of period $ 14.36   $ 14.77   $ 14.59   $ 13.63  
 

 

 

 

 
Market price, end of period $ 13.20   $ 13.42   $ 13.40   $ 12.85  
 

 

 

 

 
TOTAL INVESTMENT RETURN5 0.99 % 5.67 % 10.04 % (13.94 )%
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                        
   OF COMMON SHAREHOLDERS:6                        
Expenses after fees paid indirectly   1.02 %7   1.03 %   0.99 %   1.07 %7
Expenses before fees paid indirectly   1.03 %7   1.03 %   1.03 %   1.07 %7
Net investment income before preferred share dividends   6.98 %7   7.29 %   7.33 %   3.78 %7
Preferred share dividends   0.49 %7   0.51 %   0.81 %   0.27 %7
Net investment income available to common shareholders   6.49 %7   6.78 %   6.52 %   3.51 %7
SUPPLEMENTAL DATA:                        
Average net assets of common shareholders (000) $ 94,565   $ 92,324   $ 90,721   $ 82,906  
Portfolio turnover   0 %   9 %   42 %   0 %
Net assets of common shareholders, end of period (000) $ 92,398   $ 95,047   $ 93,844   $ 87,664  
Preferred shares outstanding (000) $ 55,525   $ 55,528   $ 55,525   $ 55,525  
Asset coverage per preferred share, end of period $ 66,603   $ 67,796   $ 67,254   $ 64,488  

 


1 Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.

2 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

3 Calculated using the average shares outstanding method.

4 Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.

5 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

6 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

7 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

72


FINANCIAL HIGHLIGHTS

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

                       
  Six Months Ended   Year Ended December 31,  
 
June 30, 2004
 
 
  (unaudited)   2003   2002   20011   2000 1   1999 1  
 
 
 
 
 
 
 
PER COMMON SHARE OPERATING                        
   PERFORMANCE:                        
Net asset value, beginning of period $ 16.43   $ 16.41   $ 16.01   $ 15.84   $ 15.56   $ 16.51  
 

 

 

 

 

 

 
Investment operations:                                    
   Net investment income   0.42     0.88     1.12     1.25     1.24     1.17  
   Net realized and unrealized gain (loss)   (0.76 )   0.13     0.36     (0.04 )   0.28     (1.02 )
   Dividends and distributions to                                    
      preferred shareholders:                                    
      Net investment income   (0.04 )   (0.06 )   (0.11 )   (0.25 )   (0.37 )   (0.24 )
      Net realized gain   (0.02 ) (0.04 ) (0.01 )    
 
 
 
 
 
 
 
Net increase (decrease) from investment                                    
   operations (0.38 ) 0.93   1.33   0.95   1.15   (0.09 )
 
 
 
 
 
 
 
Dividends and distributions to common                                    
   shareholders:                                    
   Net investment income   (0.38 )   (0.81 )   (0.75 )   (0.75 )   (0.81 )   (0.86 )
   Net realized gain   (0.10 ) (0.18 ) (0.04 )    
 
 
 
 
 
 
 
Total dividends and distributions (0.38 ) (0.91 ) (0.93 ) (0.79 ) (0.81 ) (0.86 )
 
 
 
 
 
 
 
Capital changes with respect to issuance of                                    
   preferred shares       0.01   (0.06 )  
 
 
 
 
 
 
 
Net asset value, end of period $ 15.67   $ 16.43   $ 16.41   $ 16.01   $ 15.84   $ 15.56  
 

 

 
 

 

 

 
Market price, end of period $ 15.36   $ 16.19   $ 15.91   $ 15.40   $ 14.00   $ 14.13  
 

 

 
 

 

 

 
TOTAL INVESTMENT RETURN2 (2.88 )% 7.64 % 9.61 % 15.90 % 4.96 % (11.12 )%
 
 
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                                    
   OF COMMON SHAREHOLDERS:3                                    
Expenses after fees paid indirectly   1.07 %4   1.05 %   1.05 %   1.10 %   1.14 %   0.99 %
Expenses before fees paid indirectly   1.07 %4   1.05 %   1.06 %   1.12 %   1.14 %   0.99 %
Net investment income before preferred                                    
   share dividends   5.22 %4   5.34 %   6.90 %   7.75 %   7.94 %   7.25 %
Preferred share dividends   0.54 %4   0.39 %   0.70 %   1.55 %   2.39 %   1.50 %
Net investment income available to                                    
   common shareholders   4.68 %4   4.95 %   6.20 %   6.20 %   5.55 %   5.75 %
SUPPLEMENTAL DATA:                                    
Average net assets of common                                    
   shareholders (000) $ 141,144   $ 144,071   $ 141,064   $ 140,004   $ 135,492   $ 140,225  
Portfolio turnover   0 %   6 %   52 %   7 %   0 %   3 %
Net assets of common shareholders,                                    
   end of period (000) $ 136,481   $ 143,082   $ 142,920   $ 139,367   $ 137,917   $ 135,459  
Preferred shares outstanding (000) $ 84,150   $ 84,169   $ 84,150   $ 84,150   $ 84,150   $ 66,000  
Asset coverage per preferred share,                                    
   end of period $ 65,552   $ 67,514   $ 67,460   $ 66,406   $ 65,982   $ 76,312  

 


1 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

2 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

3 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.

4 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

73


FINANCIAL HIGHLIGHTS

BlackRock Florida Municipal 2020 Term Trust (BFO)

          For the period  
    Six Months Ended     September 30, 20031  
    June 30, 2004     through  
    (unaudited)     December 31, 2003  
 

 

 
PER COMMON SHARE OPERATING PERFORMANCE:              
Net asset value, beginning of period
$
14.50  
$
14.33 2
 

 

 
Investment operations:                  
   Net investment income     0.49         0.12  
   Net realized and unrealized gain (loss)     (0.72 )       0.26  
   Dividends to preferred shareholders from net investment income   (0.04 )   (0.01 )
 

 

 
Net increase (decrease) from investment operations   (0.27 )   0.37  
 

 

 
Dividends to common shareholders from net investment income   (0.45 )   (0.15 )
 

 

 
Capital charges with respect to issuance of:                  
   Common shares             (0.03 )
   Preferred shares       (0.02 )
 

 

 
Total capital charges       (0.05 )
 

 

 
Net asset value, end of period $
13.78   $     14.50  
 

 

 
Market price, end of period $
13.90   $     15.39  
 

 

 
TOTAL INVESTMENT RETURN3   (6.86 )%   3.60 %
 

 

 
RATIOS TO AVERAGE NET ASSETS                  
   OF COMMON SHAREHOLDERS:4,5                  
Expenses after fees paid indirectly     1.21 %       1.02 %
Expenses before fees paid indirectly     1.28 %       1.05 %
Net investment income before preferred share dividends     6.92 %       3.45 %
Preferred share dividends     0.61 %       0.30 %
Net investment income available to common shareholders     6.31 %       3.15 %
SUPPLEMENTAL DATA:                  
Average net assets of common shareholders (000) $   79,820   $   76,698  
Portfolio turnover     4 %       0 %
Net assets of common shareholders, end of period (000) $   76,646   $   80,655  
Preferred shares outstanding (000) $   48,900   $   48,900  
Asset coverage per preferred share, end of period $   64,188   $   66,237  

 


1 Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.

2 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.

3 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

4 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

5 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

74


FINANCIAL HIGHLIGHTS

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

                       
  Six Months Ended   Year Ended December 31,  
 
June 30, 2004
 
 
  (unaudited)   2003   2002   20011   2000 1   1999 1  
 
 
 
 
 
 
 
PER COMMON SHARE OPERATING                        
   PERFORMANCE:                        
Net asset value, beginning of period $ 17.13   $ 17.09   $ 16.22   $ 16.17   $ 15.63   $ 16.74  
 

 

 

 

 

 

 
Investment operations:                                    
   Net investment income   0.47     1.01     1.13     1.25     1.24     1.16  
   Net realized and unrealized gain (loss)   (0.75 )   (0.05 )   0.75     (0.17 )   0.53     (1.18 )
   Dividends and distributions to preferred                                    
      shareholders:                                    
      Net investment income   (0.04 )   (0.08 )   (0.11 )   (0.26 )   (0.38 )   (0.23 )
      Net realized gain   (0.01 ) (0.03 ) (0.01 )    
 
 
 
 
 
 
 
Net increase (decrease) from investment                                    
   operations (0.32 ) 0.87   1.74   0.81   1.39   (0.25 )
 
 
 
 
 
 
 
Dividends and distributions to common                                    
   shareholders:                                    
   Net investment income   (0.38 )   (0.79 )   (0.75 )   (0.75 )   (0.80 )   (0.86 )
   Net realized gain   (0.04 ) (0.12 ) (0.02 )    
 
 
 
 
 
 
 
Total dividends and distributions (0.38 ) (0.83 ) (0.87 ) (0.77 ) (0.80 ) (0.86 )
 
 
 
 
 
 
 
Capital changes with respect to issuance of                                    
   preferred shares       0.01   (0.05 )  
 
 
 
 
 
 
 
Net asset value, end of period $ 16.43   $ 17.13   $ 17.09   $ 16.22   $ 16.17   $ 15.63  
 

 

 
 

 

 

 
Market price, end of period $ 15.76   $ 16.96   $ 16.22   $ 15.50   $ 14.75   $ 14.69  
 

 

 
 

 

 

 
TOTAL INVESTMENT RETURN2 (4.96 )% 9.88 % 10.47 % 10.48 % 6.10 % (6.96 )%
 
 
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                                    
   OF COMMON SHAREHOLDERS:3                                    
Expenses after fees paid indirectly   1.04 %4   1.03 %   1.04 %   1.10 %   1.12 %   0.99 %
Expenses before fees paid indirectly   1.04 %4   1.03 %   1.05 %   1.10 %   1.12 %   0.99 %
Net investment income before preferred share                                    
   dividends   5.61 %4   5.85 %   6.75 %   7.59 %   7.85 %   7.13 %
Preferred share dividends   0.50 %4   0.48 %   0.68 %   1.56 %   2.40 %   1.42 %
Net investment income available to                                    
   common shareholders   5.11 %4   5.37 %   6.07 %   6.03 %   5.45 %   5.71 %
SUPPLEMENTAL DATA:                                    
Average net assets of common                                    
   shareholders (000) $ 190,563   $ 192,958   $ 187,970   $ 184,600   $ 177,057   $ 183,111  
Portfolio turnover   0 %   7 %   31 %   9 %   0 %   0 %
Net assets of common shareholders,                                    
   end of period (000) $ 184,975   $ 192,801   $ 192,337   $ 182,611   $ 182,075   $ 175,961  
Preferred shares outstanding (000) $ 109,550   $ 109,550   $ 109,550   $ 109,550   $ 109,550   $ 85,500  
Asset coverage per preferred share,                                    
   end of period $ 67,219   $ 69,000   $ 68,893   $ 66,674   $ 66,596   $ 76,489  

 


1 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

2 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

3 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.

4 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

75


FINANCIAL HIGHLIGHTS

BlackRock New York Municipal 2018 Term Trust (BLH)

               
            For the period  
  Six Months Ended   Year Ended December 31,   October 30, 20011  
 
June 30, 2004
 
 
through
 
  (unaudited)   2003   2002   December 31, 20012,3  
 
 
 
 
 
PER COMMON SHARE OPERATING PERFORMANCE:                
Net asset value, beginning of period $ 15.53   $ 15.11   $ 13.58   $ 14.33 4
 

 

 

 

 
Investment operations:                        
   Net investment income   0.54     1.06     1.01     0.09  
   Net realized and unrealized gain (loss)   (0.69 )   0.18     1.37     (0.61 )
   Dividends to preferred shareholders from                        
      net investment income (0.04 ) (0.08 ) (0.11 ) (0.01 )
 
 
 
 
 
Net increase (decrease) from investment operations (0.19 ) 1.16   2.27   (0.53 )
 
 
 
 
 
Dividends to common shareholders from net investment income (0.37 ) (0.74 ) (0.74 ) (0.06 )
 
 
 
 
 
Capital charges with respect to issuance of:                        
   Common shares               (0.03 )
   Preferred shares       (0.13 )
 
 
 
 
 
Total capital charges       (0.16 )
 
 
 
 
 
Net asset value, end of period $ 14.97   $ 15.53   $ 15.11   $ 13.58  
 

 

 

 

 
Market price, end of period $ 14.14   $ 14.70   $ 13.46   $ 13.15  
 

 

 

 

 
TOTAL INVESTMENT RETURN5 (1.36 )% 14.94 % 7.96 % (11.94 )%
 
 
 
 
 
RATIOS TO AVERAGE NET ASSETS                        
   OF COMMON SHAREHOLDERS:6                        
Expenses after fees paid indirectly   1.11 %7   1.12 %   1.13 %   1.15 %7
Expenses before fees paid indirectly   1.11 %7   1.14 %   1.17 %   1.15 %7
Net investment income before preferred share dividends   6.97 %7   7.03 %   7.03 %   3.73 %7
Preferred share dividends   0.48 %7   0.53 %   0.80 %   0.26 %7
Net investment income available to common shareholders   6.49 %7   6.50 %   6.23 %   3.47 %7
SUPPLEMENTAL DATA:                        
Average net assets of common shareholders (000) $ 56,167   $ 54,510   $ 52,265   $ 47,959  
Portfolio turnover   0 %   11 %   41 %   1 %
Net assets of common shareholders, end of period (000) $ 54,390   $ 56,415   $ 54,881   $ 49,353  
Preferred shares outstanding (000) $ 31,400   $ 31,400   $ 31,400   $ 31,400  
Asset coverage per preferred share, end of period $ 68,304   $ 69,917   $ 68,702   $ 64,311  

 


1 Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.

2 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

3 Calculated using the average shares outstanding method.

4 Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.

5 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

6 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

7 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

76


FINANCIAL HIGHLIGHTS

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

                       
For the period
 
  Six Months                    
August 25,
 
  Ended      
19991
 
  June 30,   Year Ended December 31,  
through
 
 
2004
 
 
December 31,
 
  (unaudited)   2003   2002   2001 2   2000 2  
19992
 
 
 
 
 
 
 
 
PER COMMON SHARE                          
   OPERATING PERFORMANCE:                          
Net asset value, beginning of period $ 16.09   $ 15.61   $ 14.65   $ 14.62   $   13.40   $ 14.33 3
 

 

 

 

 


 

 
Investment operations:                                      
   Net investment income   0.56     1.12     1.17     1.17       1.18     0.27  
   Net realized and unrealized gain (loss)   (0.64 )   0.30     0.73     (0.08 )     1.29     (0.66 )
   Dividends to preferred shareholders                                      
      from net investment income (0.04 ) (0.07 )   (0.11 )   (0.24 )     (0.36) 4 (0.06 )
 
 
 

 

 


 
 
Net increase (decrease) from investment                                      
   operations (0.12 ) 1.35     1.79     0.85       2.11   (0.45 )
 
 
 

 

 


 
 
Dividends to common shareholders                                      
   from net investment income (0.44 ) (0.87 )   (0.83 )   (0.82 )     (0.88 )4 (0.23 )4
 
 
 

 

 


 
 
Capital charges with respect to issuance of:                                      
   Common shares                         (0.03 )
   Preferred shares                 (0.01 ) (0.22 )
 
 
 

 

 


 
 
Total capital charges                 (0.01 ) (0.25 )
 
 
 

 

 


 
 
Net asset value, end of period $ 15.53   $ 16.09   $ 15.61   $ 14.65   $   14.62   $ 13.40  
 

 

 

 

 


 

 
Market price, end of period $ 13.93   $ 15.12   $ 14.33   $ 14.03   $   13.13   $ 13.38  
 

 

 

 

 


 

 
TOTAL INVESTMENT RETURN5 (5.10 )% 11.91 %   8.19 %   13.12 %     5.08 % (9.43 )%
 
 
 

 

 


 
 
RATIOS TO AVERAGE NET ASSETS OF                                      
   COMMON SHAREHOLDERS:6                                      
Expenses after fees waived and                                      
   paid indirectly   1.06 %7   1.12 %   1.34 %   1.11 %     1.22 %   1.20 %7
Expenses before fees waived and                                      
   paid indirectly   1.47 %7   1.54 %   1.75 %   1.55 %     1.63 %   1.61 %7
Net investment income before                                      
   preferred share dividends   7.07 %7   7.09 %   7.69 %   7.86 %     8.49 %   5.63 %7
Preferred share dividends   0.51 %7   0.46 %   0.71 %   1.63 %     2.60 %   1.17 %7
Net investment income available                                      
   to common shareholders   6.56 %7   6.63 %   6.98 %   6.23 %     5.89 %   4.46 %7
SUPPLEMENTAL DATA:                                      
Average net assets of common                                      
   shareholders (000) $ 32,068   $ 31,892   $ 30,545   $ 30,122   $   27,920   $ 26,882  
Portfolio turnover   0 %   0 %   7 %   16 %     28 %   1 %
Net assets of common shareholders,                                      
   end of period (000) $ 31,309   $ 32,435   $ 31,454   $ 29,531   $   29,469   $ 26,995  
Preferred shares outstanding (000) $ 17,500   $ 17,500   $ 17,500   $ 17,500   $   17,500   $ 17,500  
Asset coverage per preferred share,                                      
   end of period $ 69,732   $ 71,341   $ 69,939   $ 67,194   $   67,112   $ 63,571  

 


1 Commencement of investment operations. This information includes the initial investment by BlackRock Financial Management, Inc.

2 Amounts have been restated to conform to the presentation under the provisions of EITF D-98.

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 Amounts have been reclassified to conform with current period presentation.

5 Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.

6 Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders.

7 Annualized.

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.

See Notes to Financial Statements.

77


NOTES TO FINANCIAL STATEMENTS (unaudited)


Note 1. Organization & Accounting Policies

The BlackRock Insured Municipal 2008 Term Trust Inc. (“Municipal Insured 2008”), The BlackRock Insured Municipal Term Trust Inc. (“Insured Municipal”), The BlackRock Municipal Target Term Trust Inc. (“Municipal Target”), The BlackRock California Insured Municipal 2008 Term Trust Inc. (“California Insured 2008”) and The BlackRock New York Insured Municipal 2008 Term Trust Inc. (“New York Insured 2008”) were organized as Maryland corporations. BlackRock Municipal 2018 Term Trust (“Municipal 2018”), BlackRock Municipal 2020 Term Trust (“Municipal 2020”), The BlackRock Strategic Municipal Trust (“Municipal Strategic”), BlackRock California Municipal 2018 Term Trust (“California 2018”), BlackRock Florida Municipal 2020 Term Trust (“Florida 2020”), BlackRock New York Municipal 2018 Term Trust (“New York 2018”) and The BlackRock Pennsylvania Strategic Municipal Trust (“Pennsylvania Strategic”) were organized as Delaware statutory trusts. The BlackRock Florida Insured Municipal 2008 Term Trust (“Florida Insured 2008”) was organized as a Massachusetts business trust. Municipal Insured 2008, Insured Municipal, Municipal 2018, Municipal 2020, Municipal Target and Municipal Strategic are registered as diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. California Insured 2008, California 2018, Florida Insured 2008, Florida 2020, New York Insured 2008, New York 2018 and Pennsylvania Strategic are registered as non-diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. Municipal Insured 2008, California Insured 2008, Florida Insured 2008 and New York Insured 2008 are herein referred to as the 2008 Trusts. Municipal 2018, California 2018 and New York 2018 are herein referred to as the 2018 Trusts. Municipal 2020 and Florida 2020 are herein referred to as the 2020 Trusts. Municipal Strategic and Pennsylvania Strategic are herein referred to as the Strategic Trusts.

The following is a summary of significant accounting policies followed by the Trusts.

Investments Valuation: Municipal investments (including commitments to purchase such investments 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 or Board of Directors as the case may be (each, a “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from bond dealers, market transactions in comparable investments and various relationships between investments. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Investments in other investment companies are valued at net asset value. Any investments 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.

Investments Transactions and Investment Income: Investments 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/or accretes discount 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, the Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract.

     Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.

Segregation: In cases in which the Investment Company Act of 1940, as amended, and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust segregate assets in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Federal Income Taxes: It is each Trust’s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net income to shareholders. For this reason and because substantially all of the gross income of each Trust consists of tax-exempt interest, no Federal income tax provisions are required.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss car-ryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. 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 deferred compensation plan approved by the Trust’s Board, non-interested Trustees/Directors (“Trustees”) are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end trusts 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.

78


     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.

Note 2. Agreements

Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the “Advisor”), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the 2018 Trusts and 2020 Trusts. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The Investment Management Agreements for the 2018 Trusts, 2020 Trusts and Strategic Trusts cover both investment advisory and administration services. Each 2008 Trust, Insured Municipal Trust and Municipal Target Trust has an Administration Agreement with the Advisor.

     Each Trust’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.35% for the 2008 Trusts, Insured Municipal and Municipal Target, 0.40% for the 2018 Trusts, 0.50% for the 2020 Trusts and 0.60% for the Strategic Trusts, of the 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 on the Strategic Trusts as a percentage of managed assets as follows: 0.25% for the first five years of each of the Trust’s operations, 0.20% in year six, 0.15% in year seven, 0.10% in year eight and 0.05% in year nine.

     The administration fee paid to the Advisor by the 2008 Trusts, Insured Municipal Trust and Municipal Trust is computed weekly and payable monthly based on an annual rate, 0.10% for each 2008 Trust and Insured Municipal Trust and 0.07% for Municipal Target Trust, of the Trust’s average weekly managed assets.

     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 earning 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 and U.S. government securities, for the six months ended June 30, 2004, were as follows:

Trust
  Purchases   Sales  
Trust
Purchases   Sales  

 
 

 

 
 
Municipal Insured 2008   $ 20,558,516   $ 55,120,166   California 2018 $   $  
Insured Municipal     3,737,110     9,565,730   Florida Insured 2008       7,539,650  
Municipal 2018     37,689,108     29,271,447   Florida 2020   20,576,612     5,019,980  
Municipal 2020   183,205,336     113,165,237   New York Insured 2008       18,849,900  
Municipal Target         37,179,050   New York 2018        
Municipal Strategic     4,823,462     3,997,140   Pennsylvania Strategic       975,463  
California Insured 2008         8,850,450                

There were no purchases or sales of U.S. government securities for the six months ending June 30, 2004.

Details of open financial futures contracts at June 30, 2004 were as follows:

  Number of       Expiration   Value at   Value at   Unrealized  
Trust
Contracts   Type   Date   Trade Date   June 30, 2004   Depreciation  


 
 
 
 
 
 
Short Positions:                              
Municipal 2018 856  
10 Yr. U.S. T-Note
Sept. ’04
  $ 92,398,394   $ 93,584,879   $ (1,186,485 )
Municipal 2020 1,075  
10 Yr. U.S. T-Note
Sept. ’04
  116,037,759     117,527,735     (1,489,976 )
Municipal Strategic 369  
10 Yr. U.S. T-Note
Sept. ’04
    39,830,449     40,342,079     (511,630 )
California 2018 311  
10 Yr. U.S. T-Note
Sept. ’04
    33,570,152     34,001,049     (430,897 )
Florida 2020 288  
10 Yr. U.S. T-Note
Sept. ’04
    31,087,646     31,486,500     (398,854 )
New York 2018 177  
10 Yr. U.S. T-Note
Sept. ’04
    19,105,862     19,351,069     (245,207 )
Pennsylvania Strategic 83  
10 Yr. U.S. T-Note
Sept. ’04
    8,959,033     9,074,235     (115,202 )

     At June 30, 2004, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by each Trust were as follows:

Trust
  Cost   Appreciation   Depreciation   Net  

 
 
 
 
 
Municipal Insured 2008   $ 682,935,401   $ 32,680,677   $ 1,128,644   $ 31,552,033  
Insured Municipal     425,924,627     20,955,903     246,870     20,709,033  
Municipal 2018     374,860,862     8,924,334     7,538,082     1,386,252  
Municipal 2020     471,172,605     1,167,086     10,200,509     (9,033,423 )
Municipal Target     747,739,159     26,988,945     209,702     26,779,243  
Municipal Strategic     162,680,386     11,323,079     5,991,149     5,331,930  
California Insured 2008     261,122,912     12,334,767     461,648     11,873,119  
California 2018     147,575,043     3,068,258     4,279,121     (1,210,863 )
Florida Insured 2008     211,476,770     6,348,606     240,870     6,107,736  
Florida 2020     126,564,817     324,769     2,722,337     (2,397,568 )
New York Insured 2008     273,040,936     14,267,937     186,416     14,081,521  
New York 2018     82,631,691     2,748,039     960,925     1,787,114  
Pennsylvania Strategic     43,614,712     2,758,695     58,008     2,700,687  

79


     For Federal income tax purposes, the following Trusts had capital loss carryforwards at December 31, 2003, the Trusts’ last tax year-end (other than the Strategic Trusts, each of which has a tax year-end of June 30th). These amounts may be used to offset future realized capital gains, if any:

    Capital Loss         Capital Loss    
Trust
  Carryforward Amount   Expires  
Trust
Carryforward Amount   Expires

 
 
 

 
Insured Municipal   $ 1,308   2011   New York 2018 $ 668,608   2010
   
         
431,368
 
2010
Municipal 2018   $ 2,036,899   2010    
   
   
        $
1,099,976
   
Municipal 2020   $ 273,311   2012    

   
   

      Pennsylvania Strategic
87,517
 
2009
Municipal Strategic   $ 78,019   2008    
408,700
 
2010
   
1,802,842
 
2009
   

   
   
760,288
 
2010
    $
496,217
   
    2,477,786   2012    

   
   
               
    $ 5,118,935                
   

               
California 2018   $ 1,287,186   2010          
   
             

     Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward amounts. Each of the Strategic Trusts has a tax year-end of June 30th.

Note 4. Distributions to Shareholders

The tax character of distributions paid during the six months ended June 30, 2004 and the year ended December 31, 2003 were as follows:

  Six months ended June 30, 2004  
 
 
  Tax-exempt   Ordinary   Long-term   Total  
Distributions Paid From: Income   Income   Capital Gains   Distributions  


 
 
 
 
Municipal Insured 2008 $ 12,038,606   $   $   $ 12,038,606  
Insured Municipal   8,243,331             8,243,331  
Municipal 2018   6,850,638             6,850,638  
Municipal 2020   10,358,348             10,358,348  
Municipal Target   12,953,389             12,953,389  
Municipal Strategic   3,747,643             3,747,643  
California Insured 2008   4,475,202             4,475,202  
California 2018   2,593,948             2,593,948  
Florida Insured 2008   3,647,644             3,647,644  
Florida 2020   2,746,570             2,746,570  
New York Insured 2008   4,697,843             4,697,843  
New York 2018   1,467,912             1,467,912  
Pennsylvania Strategic   975,942             975,942  
                         
 
Year ended December 31, 2003
 
 
 
 
Tax-exempt
Ordinary
Long-term
Total
 
Distributions Paid From:
Income
Income
Capital Gains
Distributions
 


 
 
 
 
Municipal Insured 2008 $ 29,760,739   $ 66,619   $ 3,886,669   $ 33,714,027  
Insured Municipal   17,947,109         727,198     18,674,307  
Municipal 2018   13,745,221             13,745,221  
Municipal 2020   3,374,772             3,374,772  
Municipal Target   28,819,211         1,244,095     30,063,306  
Municipal Strategic   7,322,693             7,322,693  
California Insured 2008   11,089,340         1,069,223     12,158,563  
California 2018   5,197,098             5,197,098  
Florida Insured 2008   7,606,766     164,752     874,481     8,645,999  
Florida 2020   893,572             893,572  
New York Insured 2008   9,757,880     108,699     408,189     10,274,768  
New York 2018   2,957,322             2,957,322  
Pennsylvania Strategic   1,893,236             1,893,236  

80


As of June 30, 2004, the components of distributable earnings on a tax basis were as follows:

  Undistributed   Undistributed   Undistributed      
  Tax-exempt   Ordinary   Long-term   Unrealized Net  
  Income   Income   Gains   Appreciation  
 
 
 
 
 
Municipal Insured 2008 $ 31,729,795   $   $ 774,885   $ 31,552,033  
Insured Municipal   20,063,723         124,429     20,709,033  
Municipal 2018   14,283,831             1,386,252  
Municipal 2020   1,805,640              
Municipal Target   28,826,736         479,036     26,779,243  
Municipal Strategic   5,597,286             5,331,930  
California Insured 2008   10,343,316         324,226     11,873,119  
California 2018   3,944,589              
Florida Insured 2008   7,828,341         446,371     6,107,736  
Florida 2020   214,443   183,445     172,541      
New York Insured 2008   12,112,825         627,251     14,081,520  
New York 2018   2,249,137             1,787,114  
Pennsylvania Strategic   1,129,826             2,700,687  

Note 5. Capital

There are 200 million of $0.01 par value common shares authorized for each of the 2008 Trusts, Insured Municipal and Municipal Target. There are an unlimited number of $0.001 par value common shares authorized for each of the 2018 Trusts, 2020 Trusts and Strategic Trusts. Each Trust may classify or reclassify any unissued common shares into one or more series of preferred shares. At June 30, 2004, the common shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:

  Common   Common     Common   Common  
  Shares   Shares     Shares   Shares  
Trust
Outstanding   Owned  
Trust
Outstanding   Owned  


 
 

 
 
Municipal Insured 2008 27,207,093     California 2018 6,433,028    
Insured Municipal 25,885,639     Florida Insured 2008 8,707,093    
Municipal 2018 15,908,028     Florida 2020 5,562,128   8,028  
Municipal 2020 20,236,628   8,028   New York Insured 2008 11,257,093    
Municipal Target 45,410,639     New York 2018 3,633,028    
Municipal Strategic 7,242,261     Pennsylvania Strategic 2,015,492    
California Insured 2008 10,407,093              

     There were no transactions in common shares of beneficial interest for the six months ended June 30, 2004. Transactions in common shares of beneficial interest for the period ended December 31, 2003 were as follows:

  Shares from      
 
     
      Underwriters’          
      Exercising the       Net Increase  
  Initial Public   Over-allotment   Reinvestment   in Shares  
Trust
Offering   Option   of Dividends   Outstanding  


 
 
 
 
Municipal 2020 18,508,028   1,728,600     20,236,628  
Florida 2020 5,008,028   554,100     5,562,128  

     Offering costs incurred in connection with the offering of common shares for the Municipal 2020 Term Turst and Florida Municipal 2020 Term Trust have been charged against the proceeds from the initial common share offering of the common shares in the amounts of $540,000 and $135,000, respectively.

     As of June 30, 2004, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.

     Underwriting discounts and offering costs incurred in connection with the 2020 Trust’s preferred share offering have been charged to paid-in capital in excess of par of the common shares.

81


Trust
  Series   Shares  
Trust
  Series   Shares  

 
 
 
 
 
 
Municipal Insured 2008   T7   4,660   Municipal Strategic   W7   2,480  
    R7   2,060   California Insured 2008   W7   2,622  
    T28   2,060       W28   1,560  
    R28   2,060   California 2018   M7   2,221  
Insured Municipal   M7   4,216   Florida Insured 2008   R7   3,366  
    M28   2,600              
            Florida 2020   F7   1,956  
Municipal 2018   W7   2,752   New York Insured 2008   F7   2,672  
    R7   2,752       F28   1,710  
Municipal 2020   M7   2,368   New York 2018   T7   1,256  
    W7   2,368   Pennsylvania Strategic   W7   700  
    F7   2,368              
Municipal Target   W7   5,964              
    F7   3,000              
    W28   3,000              

 

Underwriting   Offering       Underwriting   Offering      
Trust   Discount   Cost   Trust   Discount   Cost  

 
 
 
 
 
 
Municipal 2020  
$1,776,000
$320,320
Florida 2020
$489,000
$130,560
 

     Dividends on 7-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. Dividends on 28-day preferred shares are cumulative at a rate which is reset every 28 days based on the results of an auction. The dividend ranges on the preferred shares for each of the Trusts for the period ended June 30, 2004, were as follows:

Trust
Low   High  
Trust
Low   High  


 
 

 
 
Municipal Insured 2008 0.49 % 1.48 % California 2018 0.45 % 1.05 %
Insured Municipal 0.68   1.25   Florida Insured 2008 0.59   1.15  
Municipal 2018 0.75   1.28   Florida 2020 0.85   1.25  
Municipal 2020 0.73   1.30   New York Insured 2008 0.60   1.15  
Municipal Target 0.60   1.22   New York 2018 0.45   1.03  
Municipal Strategic 0.69   1.15   Pennsylvania Strategic 0.60   1.18  
California Insured 2008 0.45   1.40            

     A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares would be less than 200%.

     The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated or unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust’s Declaration of Trust/Articles Supplementary are not satisfied.

     The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect two Directors/Trustees for each Trust. In addition, the Investment Company Act of 1940, as amended, requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class, would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

Note 6. Dividends

Subsequent to June 30, 2004, the Board of each Trust declared dividends from undistributed earnings per common share payable August 2, 2004, to shareholders of record on July 15, 2004. The per share common dividends declared were:

  Common Dividend     Common Dividend  
Trust
Per Share  
Trust
Per Share  


 

 
Municipal Insured 2008 $ 0.066250   California 2018
$
0.061250
 
Insured Municipal   0.047917   Florida Insured 2008  
0.062500
 
Municipal 2018   0.065000   Florida 2020  
0.075000
 
Municipal 2020   0.078125   New York Insured 2008  
0.062500
 
Municipal Target   0.040000   New York 2018  
0.061250
 
Municipal Strategic   0.079585   Pennsylvania Strategic  
0.073965
 
California Insured 2008   0.064375          

82


The dividends declared on preferred shares for the period July 1, 2004 to July 31, 2004, for each of the Trusts were as follows:

      Dividends         Dividends  
Trust
Series   Declared  
Trust
Series   Declared  


 
 

 
 
Municipal Insured 2008 T7   $
75,073
  California Insured 2008 W7  
$
30,494
 
  R7    
42,766
    W28    
35,334
 
  T28    
47,401
  California 2018 M7    
34,403
 
  R28    
46,618
  Florida Insured 2008 R7    
80,818
 
Insured Municipal M7    
83,645
  Florida 2020 F7    
51,756
 
  M28    
62,530
  New York Insured 2008 F7    
46,707
 
Municipal 2018 W7    
54,985
    F28    
37,706
 
  R7    
69,460
  New York 2018 T7    
21,729
 
Municipal 2020 M7    
51,504
  Pennsylvania Strategic W7    
11,606
 
  W7    
48,899
             
  F7    
59,697
             
Municipal Target W7    
94,410
             
  F7    
66,360
             
  W28    
62,700
             
Municipal Strategic W7    
50,493
             

83


DIVIDEND REINVESTMENT PLANS


     Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders of the 2008 Trusts, Insured Municipal and Municipal Target may elect, while the common shareholders of the 2018 Trusts, 2020 Trusts and Strategic Trusts are automatically enrolled, to have all distributions of dividends and capital gains reinvested by EquiServe Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

     After a 2008 Trust, Insured Municipal, 2018 Trust, 2020 Trust and/or Municipal Target declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ account, by the purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“open market purchases”). These Trusts will not issue any new shares under the Plan.

     After a Strategic Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as “market premium”), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases.

     Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

     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. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.

84


ADDITIONAL INFORMATION (Unaudited)


     We are required by the Internal Revenue Code to advise you within 60 days of a Trust’s tax year-end as to the Federal tax status of dividends paid by the Trusts during such tax year. Accordingly, during the tax year-ended June 30, 2003, all dividends paid by the Strategic Trusts (the only Trusts with June 30th tax year-ends) were federally tax-exempt interest dividends.

     The Joint Annual Meeting of Shareholders was held on May 26, 2004, to elect a certain number of Directors/Trustees for each of the following Trusts to three-year terms, unless otherwise indicated, expiring in 2007:

Municipal Insured 2008          

         
Elected the Class II Directors as follows:        
Director   Votes for   Votes Withheld  

 
 
 
Frank J. Fabozzi1   10,236   44  
Walter F. Mondale   20,265,760   556,078  
Ralph L. Schlosstein   20,374,819   447,019  
Insured Municipal          

         
Elected the Class III Directors as follows:        
Director   Votes for   Votes Withheld  

 
 
 
Andrew F. Brimmer   22,008,977   244,156  
Kent Dixon   22,031,965   221,168  
Robert S. Kapito   22,044,458   208,675  
Municipal 2018          

         
Elected the Class III Trustees as follows:        
Trustee   Votes for   Votes Withheld  

 
 
 
Andrew F. Brimmer   11,975,601   166,303  
Kent Dixon   11,983,296   158,608  
Robert S. Kapito   11,986,708   155,196  
Municipal 2020          

         
Elected the Class I Trustees as follows:        
Trustee   Votes for   Votes Withheld  

 
 
 
Richard E. Cavanagh1   7,074   8  
James Clayburn La Force, Jr.   15,778,107   141,744  
Municipal Target          

         
Elected the Class III Directors as follows:        
Director   Votes for   Votes Withheld  

 
 
 
Andrew F. Brimmer   37,055,882   534,704  
Kent Dixon   37,160,178   430,408  
Robert S. Kapito   37,159,221   431,365  
Municipal Strategic          

         
Elected the Class I Trustees as follows:        
Trustee   Votes for   Votes Withheld  

 
 
 
Richard E. Cavanagh1   2,435   9  
James Clayburn La Force, Jr. 6,842,251   110,104  
California Insured 2008          

         
Elected the Class II Directors as follows:        
Director   Votes for   Votes Withheld  

 
 
 
Frank J. Fabozzi1   4,036   19  
Walter F. Mondale   8,383,927   272,836  
Ralph L. Schlosstein   8,454,951   201,812  

 


1 Voted on by holders of preferred shares only.

85


ADDITIONAL INFORMATION (Unaudited)

California 2018        

       
Elected Class III Trustees as follows:        
Trustee Votes for   Votes Withheld  


 
 
Andrew F. Brimmer 5,324,139   48,150  
Kent Dixon 5,325,114   47,175  
Robert S. Kapito 5,326,639   45,650  
Florida Insured 2008        

       
Elected the Class II Trustees as follows:        
Trustee Votes for   Votes Withheld  


 
 
Frank J. Fabozzi1 3,187   5  
Walter F. Mondale 6,764,734   178,550  
Ralph L. Schlosstein 6,814,631   128,653  
Florida 2020        

       
Elected the Class I Trustees as follows:        
Trustee Votes for   Votes Withheld  


 
 
Richard E. Cavanagh1 1,912   4  
James Clayburn La Force, Jr. 4,481,053   49,961  
New York Insured 2008        

       
Elected the Class II Directors as follows:        
Director Votes for   Votes Withheld  


 
 
Frank J. Fabozzi1 4,247   41  
Walter F. Mondale 9,140,992   96,419  
Ralph L. Schlosstein 9,161,660   75,751  
New York 2018        

       
Elected the Class III Trustees as follows:        
Trustee Votes for   Votes Withheld  


 
 
Andrew F. Brimmer 2,861,507   52,186  
Kent Dixon 2,861,507   52,186  
Robert S. Kapito 2,854,953   58,740  
Pennsylvania Strategic        

       
Elected the Class I Trustees as follows:        
Trustee Votes for   Votes Withheld  


 
 
Richard E. Cavanagh1 546   19  
James Clayburn La Force, Jr. 1,887,455   11,483  

     In addition to the election of Directors/Trustees, the following Trusts had an additional proposal (Proposal #2) to amend their respective Articles Supplementary in order to require an annual, instead of a quarterly, valuation date in connection with certain asset coverage tests:

  Votes for   Votes Against   Votes Withheld  
 
 
 
 
Municipal Insured 2008 17,784,763   2,717,300   319,775  
Insured Municipal 21,473,606   429,206   350,321  
Municipal Target 34,854,629   2,214,474   521,483  
California Insured 2008 8,260,565   307,540   88,658  
New York Insured 2008 7,493,081   1,646,368   97,962  

     Quarterly performance and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com/funds/cefunds/index.html. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRock’s website into this report.

     Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or Sub-Advisor: Robert S. Kapito—Director and Vice Chairman of the Advisor and the Sub-Advisor, Kevin M. Klingert, Henry Gabbay and Anne Ackerley—Managing Directors of the Advisor and the Sub-Advisor, Richard M. Shea and James Kong—Managing Directors of the Sub-Advisor, Vincent B. Tritto—Director of the Sub-Advisor, and Brian P. Kindelan—Director of the Advisor.

 


1 Voted on by holders of preferred shares only.

86


 

BlackRock Closed-End Funds

 

Director/Trustees Transfer Agent
 
Ralph L. Schlosstein, Chairman
  EquiServe Trust Company, N.A.
 
Andrew F. Brimmer
  250 Royall Street
 
Richard E. Cavanagh
  Canton, MA 02021
 
Kent Dixon
  (800) 699-1BFM
 
Frank J. Fabozzi
 
 
Robert S. Kapito
Auction Agent1
 
James Clayburn La Force, Jr.
  Bank of New York
 
Walter F. Mondale
  100 Church Street, 8th Floor
    New York, NY 10286
Officers    
  Robert S. Kapito, President Auction Agent2
  Henry Gabbay, Treasurer   Deutsche Bank Trust Company Americas
  Anne Ackerley, Vice President   60 Wall Street, 27th Floor
  Kevin M. Klingert, Vice President   New York, NY 10005
  Richard M. Shea, Vice President/Tax    
  James Kong, Assistant Treasurer Independent Accountants
  Vincent B. Tritto, Secretary   Deloitte & Touche LLP
  Brian P. Kindelan, Assistant Secretary   200 Berkeley Street
    Boston, MA 02116
Investment Advisor    
  BlackRock Advisors, Inc. Legal Counsel
  100 Bellevue Parkway   Skadden, Arps, Slate, Meagher & Flom LLP
  Wilmington, DE 19809   Four Times Square
  (800) 227-7BFM   New York, NY 10036
     
Sub-Advisor1 Legal Counsel – Independent Trustees
  BlackRock Financial Management, Inc.   Debevoise & Plimpton LLP
  40 East 52nd Street   919 Third Avenue
  New York, NY 10022   New York, NY 10022
     
Custodian    This report is for shareholder information. This is not a prospectus
  State Street Bank and Trust Company intended for use in the purchase or sale of Trust shares.
  225 Franklin Street Statements and other information contained in this report are as
  Boston, MA 02110 dated and are subject to change.
       


BlackRock Closed-End Funds
1 For the 2018 Trusts and 2020 Trusts. c/o BlackRock Advisors, Inc.
2 For the Trusts except the 2018 Trusts and 2020 Trusts. 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 delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor’s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1236. These policies and procedures are also available on the website of the Securities and Exchange Commission at http://www.sec.gov.


 

 

 

 

 

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.

CLF-SEMI-4

 

 

 


 

Item 2. Code of Ethics.
Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.

Item 6. Schedule of Investments.
Not applicable for reports for periods ending on or before July 9, 2004.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.

Item 8. Purchases of Equity Securities by Closed-End Management Company and
Affiliated Purchasers.
Not applicable.

Item 9. Submission of Matters to a Vote of Security Holders.
Not applicable.

Item 10. 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 are effective, as of a 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 11. Exhibits.
(a)(1) Not applicable.

(a)(2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(a)(3) Not applicable.

(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 



SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)
BlackRock Municipal 2018 Term Trust
 

By:
/s/ Henry Gabbay
 
 
 
Name: Henry Gabbay  
Title: Treasurer  
Date: September 8, 2004  

          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: September 8, 2004  

By:
/s/ Henry Gabbay
 
 
 
Name: Henry Gabbay  
Title: Principal Financial Officer  
Date: September 8, 2004