-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S7Y2ymZKmucXTgrCbBaMASoMYSwo0mupUCev52XStjZT05xgocBbjR7QKxjIIVb3 I2zAFv9pn+st22f6Pc0KpQ== 0000930413-03-003197.txt : 20031031 0000930413-03-003197.hdr.sgml : 20031031 20031031122259 ACCESSION NUMBER: 0000930413-03-003197 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20030831 FILED AS OF DATE: 20031031 EFFECTIVENESS DATE: 20031031 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK NEW YORK INSURED MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001181024 IRS NUMBER: 816105964 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21179 FILM NUMBER: 03968911 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 FORMER COMPANY: FORMER CONFORMED NAME: BLACKROCK NEW YORK MUNICIPAL INCOME TRUST III DATE OF NAME CHANGE: 20020816 N-CSR 1 c29359_n-csr.txt 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: 811-21179 BlackRock New York Insured Municipal Income 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 New York Insured Municipal Income Trust 40 East 52nd Street, New York, NY 10022 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (302) 797-2449 Date of fiscal year end: 8/31/03 Date of reporting period: 8/31/03 ITEM 1. REPORTS TO STOCKHOLDERS. The Trust's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: - -------------------------------------------------------------------------------- BlackRock Closed-End Funds Annual Report AUGUST 31, 2003 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- BlackRock Insured Municipal Income Trust (BYM) BlackRock Municipal Bond Trust (BBK) BlackRock Municipal Income Trust II (BLE) BlackRock California Insured Municipal Income Trust (BCK) BlackRock California Municipal Bond Trust (BZA) BlackRock California Municipal Income Trust II (BCL) BlackRock Florida Insured Municipal Income Trust (BAF) BlackRock Florida Municipal Bond Trust (BIE) BlackRock Maryland Municipal Bond Trust (BZM) BlackRock New Jersey Municipal Bond Trust (BLJ) BlackRock New York Insured Municipal Income Trust (BSE) BlackRock New York Municipal Bond Trust (BQH) BlackRock New York Municipal Income Trust II (BFY) BlackRock Virginia Municipal Bond Trust (BHV) - -------------------------------------------------------------------------------- NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE [BLACKROCK LOGO] TABLE OF CONTENTS Letter to Shareholders ..................................................... 1 Trust Summaries ............................................................ 2 Portfolios of Investments .................................................. 16 Financial Statements Statements of Assets and Liabilities .................................... 37 Statements of Operations ................................................ 40 Statements of Changes in Net Assets ..................................... 43 Financial Highlights ....................................................... 48 Notes to Financial Statements .............................................. 53 Independent Auditors' Report ............................................... 59 Dividend Reinvestment Plans ................................................ 60 Trustees Information ....................................................... 61 Additional Information ..................................................... 63 - -------------------------------------------------------------------------------- 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 September 30, 2003 Dear Shareholder: We are pleased to report that during the annual period, the Trusts continued to provide monthly income, as well as the opportunity to invest in various portfolios of municipal securities. This report contains the Trusts' audited financial statements and a listing of the portfolios' holdings. The portfolio management team continuously monitors the municipal bond market and adjusts the portfolios in order to gain exposure to various issuers, revenue sources and security types. This strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions. The following table shows the Trusts' current yields, tax-equivalent yields, closing market prices per share and net asset values ("NAV") per share as of August 31, 2003.
- ------------------------------------------------------------------------------------------------------------------ TAX- CLOSING CURRENT EQUIVALENT MARKET TRUST (TICKER) YIELD(1) YIELD(1) PRICE NAV - ------------------------------------------------------------------------------------------------------------------ BlackRock Insured Municipal Income Trust (BYM) 6.94% 10.68% $13.51 $13.64 - ------------------------------------------------------------------------------------------------------------------ BlackRock Municipal Bond Trust (BBK) 7.59 11.67 13.66 14.12 - ------------------------------------------------------------------------------------------------------------------ BlackRock Municipal Income Trust II (BLE) 7.67 11.80 13.11 13.28 - ------------------------------------------------------------------------------------------------------------------ BlackRock California Insured Municipal Income Trust (BCK) 6.92 10.65 13.01 13.09 - ------------------------------------------------------------------------------------------------------------------ BlackRock California Municipal Bond Trust (BZA) 7.27 11.18 13.15 13.71 - ------------------------------------------------------------------------------------------------------------------ BlackRock California Municipal Income Trust II (BCL) 7.49 11.52 13.01 12.76 - ------------------------------------------------------------------------------------------------------------------ BlackRock Florida Insured Municipal Income Trust (BAF) 6.82 10.49 13.20 13.74 - ------------------------------------------------------------------------------------------------------------------ BlackRock Florida Municipal Bond Trust (BIE) 6.89 10.60 13.55 14.52 - ------------------------------------------------------------------------------------------------------------------ BlackRock Maryland Municipal Bond Trust (BZM) 6.16 9.48 13.90 14.36 - ------------------------------------------------------------------------------------------------------------------ BlackRock New Jersey Municipal Bond Trust (BLJ) 6.91 10.63 13.64 13.77 - ------------------------------------------------------------------------------------------------------------------ BlackRock New York Insured Municipal Income Trust (BSE) 6.78 10.43 13.28 13.45 - ------------------------------------------------------------------------------------------------------------------ BlackRock New York Municipal Bond Trust (BQH) 6.93 10.66 13.35 14.15 - ------------------------------------------------------------------------------------------------------------------ BlackRock New York Municipal Income Trust II (BFY) 7.20 11.08 13.12 13.36 - ------------------------------------------------------------------------------------------------------------------ BlackRock Virginia Municipal Bond Trust (BHV) 6.04 9.29 14.40 14.46 - ------------------------------------------------------------------------------------------------------------------
(1) Yields are based on closing market price. Tax-equivalent yield assumes the maximum Federal tax rate of 35%. BlackRock, Inc. ("BlackRock"), a world leader in asset management, has a proven commitment to the municipal bond market. As of June 30, 2003, BlackRock managed approximately $17.6 billion in municipal bonds, including six open-end and 35 closed-end municipal bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world's largest institutional investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly owned subsidiary of BlackRock. On behalf of BlackRock, we thank you for your continued trust and assure you that we remain committed to excellence in managing your assets. Sincerely, /s/ Laurence D. Fink /s/ Ralph L. Schlosstein Laurence D. Fink Ralph L. Schlosstein Chief Executive Officer President BlackRock Advisors, Inc. BlackRock Advisors, Inc. 1 TRUST SUMMARIES AUGUST 31, 2003 - ------------------------------------------ BLACKROCK INSURED MUNICIPAL INCOME TRUST - ------------------------------------------ TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BYM - -------------------------------------------------------------------------------- Initial Offering Date: October 31, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.51 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $13.64 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.51):(1) 6.94% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.078125 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.937500 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 39% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------- 8/31/03 HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.51 $15.05 $13.26 - -------------------------------------------------------------------------------- NAV $13.64 $15.47 $13.32 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN ------------------------------------------------------- SECTOR AUGUST 31, 2003 ------------------------------------------------------- Transportation 33% ------------------------------------------------------- Water & Sewer 19 ------------------------------------------------------- City, County & State 12 ------------------------------------------------------- Tobacco 10 ------------------------------------------------------- Power 9 ------------------------------------------------------- Tax Revenue 6 ------------------------------------------------------- Housing 3 ------------------------------------------------------- Lease Revenue 3 ------------------------------------------------------- Industrial & Pollution Control 2 ------------------------------------------------------- Hospitals 2 ------------------------------------------------------- Education 1 ------------------------------------------------------- CREDIT BREAKDOWN* ------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 ------------------------------------------------------- AAA/Aaa 83% ------------------------------------------------------- A 7 ------------------------------------------------------- BBB/Baa 10 ------------------------------------------------------- ---------- * Using the higher of Standard & Poor's ("S&P's"), Moody's Investors Service ("Moody's") or Fitch Ratings ("Fitch's") rating. 2 TRUST SUMMARIES AUGUST 31, 2003 - -------------------------------- BLACKROCK MUNICIPAL BOND TRUST - -------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BBK - -------------------------------------------------------------------------------- Initial Offering Date: April 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.66 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $14.12 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.66):(1) 7.59% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.086375 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $1.036500 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 39% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------ 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.66 $14.90 (8.32)% $14.98 $13.34 - -------------------------------------------------------------------------------- NAV $14.12 $14.76 (4.34)% $15.49 $13.97 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Industrial & Pollution Control 26% 27% - -------------------------------------------------------------------------------- Hospitals 20 18 - -------------------------------------------------------------------------------- Housing 14 13 - -------------------------------------------------------------------------------- Tobacco 9 12 - -------------------------------------------------------------------------------- Transportation 9 7 - -------------------------------------------------------------------------------- City, County & State 6 8 - -------------------------------------------------------------------------------- Tax Revenue 5 6 - -------------------------------------------------------------------------------- Power 3 3 - -------------------------------------------------------------------------------- Education 2 2 - -------------------------------------------------------------------------------- Water & Sewer 1 -- - -------------------------------------------------------------------------------- Other 5 4 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 27% 24% - -------------------------------------------------------------------------------- AA/Aa 5 4 - -------------------------------------------------------------------------------- A 23 39 - -------------------------------------------------------------------------------- BBB/Baa 32 22 - -------------------------------------------------------------------------------- BB/Ba -- 3 - -------------------------------------------------------------------------------- B 4 1 - -------------------------------------------------------------------------------- Not Rated 9 7 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 3 TRUST SUMMARIES AUGUST 31, 2003 - ------------------------------------- BLACKROCK MUNICIPAL INCOME TRUST II - ------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: BLE - -------------------------------------------------------------------------------- Initial Offering Date: July 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.11 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $13.28 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.11):(1) 7.67% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.08375 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $1.00500 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 40% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------- 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.11 $15.00 (12.60)% $15.02 $12.95 - -------------------------------------------------------------------------------- NAV $13.28 $14.40 (7.78)% $14.78 $13.12 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Hospitals 21% 15% - -------------------------------------------------------------------------------- Industrial & Pollution Control 17 12 - -------------------------------------------------------------------------------- City, County & State 12 15 - -------------------------------------------------------------------------------- Transportation 12 9 - -------------------------------------------------------------------------------- Housing 11 4 - -------------------------------------------------------------------------------- Tobacco 9 17 - -------------------------------------------------------------------------------- Water & Sewer 7 8 - -------------------------------------------------------------------------------- Tax Revenue 7 8 - -------------------------------------------------------------------------------- Power 2 2 - -------------------------------------------------------------------------------- Education 2 10 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 28% 31% - -------------------------------------------------------------------------------- AA/Aa 7 11 - -------------------------------------------------------------------------------- A 20 38 - -------------------------------------------------------------------------------- BBB/Baa 27 11 - -------------------------------------------------------------------------------- BB/Ba -- 4 - -------------------------------------------------------------------------------- B 4 5 - -------------------------------------------------------------------------------- CCC/Caa 2 -- - -------------------------------------------------------------------------------- Not Rated 12 -- - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 4 TRUST SUMMARIES AUGUST 31, 2003 - ----------------------------------------------------- BLACKROCK CALIFORNIA INSURED MUNICIPAL INCOME TRUST - ----------------------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on the New York Stock Exchange: BCK - -------------------------------------------------------------------------------- Initial Offering Date: October 31, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.01 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $13.09 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.01):(1) 6.92% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.075 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.900 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 40% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: -------------------------------------------- 8/31/03 HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.01 $15.01 $12.80 - -------------------------------------------------------------------------------- NAV $13.09 $15.24 $12.83 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN ------------------------------------------------------------- SECTOR AUGUST 31, 2003 ------------------------------------------------------------- Water & Sewer 30% ------------------------------------------------------------- Education 23 ------------------------------------------------------------- Tobacco 10 ------------------------------------------------------------- Power 10 ------------------------------------------------------------- Lease Revenue 10 ------------------------------------------------------------- City, County & State 7 ------------------------------------------------------------- Tax Revenue 4 ------------------------------------------------------------- Transportation 4 ------------------------------------------------------------- Housing 2 ------------------------------------------------------------- CREDIT BREAKDOWN* ------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 ------------------------------------------------------------- AAA/Aaa 84% ------------------------------------------------------------- A 6 ------------------------------------------------------------- BBB/Baa 10 ------------------------------------------------------------- ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 5 TRUST SUMMARIES AUGUST 31, 2003 - ------------------------------------------- BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST - ------------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BZA - -------------------------------------------------------------------------------- Initial Offering Date: April 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.15 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $13.71 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.15):(1) 7.27% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.079656 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.955872 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 39% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: --------------------------------------------------------- 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.15 $14.58 (9.81)% $14.96 $12.89 - -------------------------------------------------------------------------------- NAV $13.71 $14.87 (7.80)% $15.46 $13.46 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Education 24% 21% - -------------------------------------------------------------------------------- Hospitals 17 17 - -------------------------------------------------------------------------------- Housing 15 14 - -------------------------------------------------------------------------------- City, County & State 12 11 - -------------------------------------------------------------------------------- Tobacco 11 9 - -------------------------------------------------------------------------------- Power 5 2 - -------------------------------------------------------------------------------- Transportation 5 9 - -------------------------------------------------------------------------------- Water & Sewer 3 9 - -------------------------------------------------------------------------------- Industrial & Pollution Control 2 2 - -------------------------------------------------------------------------------- Lease Revenue 1 1 - -------------------------------------------------------------------------------- Other 5 5 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 23% 34% - -------------------------------------------------------------------------------- A 31 41 - -------------------------------------------------------------------------------- BBB/Baa 24 9 - -------------------------------------------------------------------------------- BB/Ba -- 2 - -------------------------------------------------------------------------------- B 2 -- - -------------------------------------------------------------------------------- Not Rated 20 14 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 6 TRUST SUMMARIES AUGUST 31, 2003 - ------------------------------------------------ BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II - ------------------------------------------------ TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: BCL - -------------------------------------------------------------------------------- Initial Offering Date: July 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.01 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $12.76 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.01):(1) 7.49% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.08125 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.97500 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 41% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------ 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.01 $15.01 (13.32)% $15.01 $12.95 - -------------------------------------------------------------------------------- NAV $12.76 $14.42 (11.51)% $14.82 $12.55 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- City, County & State 25% 21% - -------------------------------------------------------------------------------- Education 19 26 - -------------------------------------------------------------------------------- Hospitals 13 12 - -------------------------------------------------------------------------------- Tobacco 10 9 - -------------------------------------------------------------------------------- Transportation 9 10 - -------------------------------------------------------------------------------- Housing 9 -- - -------------------------------------------------------------------------------- Lease Revenue 5 7 - -------------------------------------------------------------------------------- Power 5 5 - -------------------------------------------------------------------------------- Water & Sewer 4 -- - -------------------------------------------------------------------------------- Industrial & Pollution Control 1 5 - -------------------------------------------------------------------------------- Tax Revenue -- 5 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 47% 77% - -------------------------------------------------------------------------------- A 19 14 - -------------------------------------------------------------------------------- BBB/Baa 13 -- - -------------------------------------------------------------------------------- BB/Ba -- 2 - -------------------------------------------------------------------------------- B 1 -- - -------------------------------------------------------------------------------- Not Rated 20 7 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 7 TRUST SUMMARIES AUGUST 31, 2003 - -------------------------------------------------- BLACKROCK FLORIDA INSURED MUNICIPAL INCOME TRUST - -------------------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BAF - -------------------------------------------------------------------------------- Initial Offering Date: October 31, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.20 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $13.74 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.20):(1) 6.82% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.075 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.900 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 39% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ---------------------------------------- 8/31/03 HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.20 $15.55 $13.09 - -------------------------------------------------------------------------------- NAV $13.74 $15.38 $13.50 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN ------------------------------------------------------------- SECTOR AUGUST 31, 2003 ------------------------------------------------------------- City, County & State 25% ------------------------------------------------------------- Tax Revenue 22 ------------------------------------------------------------- Education 16 ------------------------------------------------------------- Power 13 ------------------------------------------------------------- Hospital 8 ------------------------------------------------------------- Water & Sewer 6 ------------------------------------------------------------- Transportation 5 ------------------------------------------------------------- Tobacco 4 ------------------------------------------------------------- Housing 1 ------------------------------------------------------------- CREDIT BREAKDOWN* ------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 ------------------------------------------------------------- AAA/Aaa 82% ------------------------------------------------------------- AA/Aa 4 ------------------------------------------------------------- A 4 ------------------------------------------------------------- BBB/Baa 5 ------------------------------------------------------------- Not Rated 5 ------------------------------------------------------------- ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 8 TRUST SUMMARIES AUGUST 31, 2003 - ---------------------------------------- BLACKROCK FLORIDA MUNICIPAL BOND TRUST - ---------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BIE - -------------------------------------------------------------------------------- Initial Offering Date: April 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.55 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $14.52 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.55):(1) 6.89% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.077808 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.933696 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 38% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: -------------------------------------------------------- 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.55 $14.92 (9.18)% $15.40 $13.51 - -------------------------------------------------------------------------------- NAV $14.52 $14.90 (2.55)% $15.92 $14.34 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Tax Revenue 25% 14% - -------------------------------------------------------------------------------- Hospitals 15 24 - -------------------------------------------------------------------------------- City, County & State 15 10 - -------------------------------------------------------------------------------- Power 13 14 - -------------------------------------------------------------------------------- Tobacco 6 -- - -------------------------------------------------------------------------------- Lease Revenue 5 9 - -------------------------------------------------------------------------------- Education 5 5 - -------------------------------------------------------------------------------- Housing 5 -- - -------------------------------------------------------------------------------- Transportation 3 4 - -------------------------------------------------------------------------------- Water & Sewer 2 7 - -------------------------------------------------------------------------------- Industrial & Pollution Control -- 5 - -------------------------------------------------------------------------------- Other 6 8 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 41% 60% - -------------------------------------------------------------------------------- AA/Aa 17 7 - -------------------------------------------------------------------------------- A 21 29 - -------------------------------------------------------------------------------- BBB/Baa 7 -- - -------------------------------------------------------------------------------- Not Rated 14 4 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 9 TRUST SUMMARIES AUGUST 31, 2003 - ----------------------------------------- BLACKROCK MARYLAND MUNICIPAL BOND TRUST - ----------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: BZM - -------------------------------------------------------------------------------- Initial Offering Date: April 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.90 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $14.36 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.90):(1) 6.16% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.07135 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.85620 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 38% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: --------------------------------------------------------- 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.90 $14.95 (7.02)% $16.10 $13.46 - -------------------------------------------------------------------------------- NAV $14.36 $14.76 (2.71)% $15.78 $14.12 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Education 26% 23% - -------------------------------------------------------------------------------- Hospitals 17 17 - -------------------------------------------------------------------------------- Water & Sewer 12 12 - -------------------------------------------------------------------------------- City, County & State 11 9 - -------------------------------------------------------------------------------- Transportation 9 9 - -------------------------------------------------------------------------------- Lease Revenue 8 16 - -------------------------------------------------------------------------------- Power 5 4 - -------------------------------------------------------------------------------- Housing 4 6 - -------------------------------------------------------------------------------- Tobacco 3 -- - -------------------------------------------------------------------------------- Other 5 4 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 34% 34% - -------------------------------------------------------------------------------- AA/Aa 12 23 - -------------------------------------------------------------------------------- A 36 35 - -------------------------------------------------------------------------------- BBB/Baa 11 4 - -------------------------------------------------------------------------------- Not Rated 7 4 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 10 TRUST SUMMARIES AUGUST 31, 2003 - ------------------------------------------- BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST - ------------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: BLJ - -------------------------------------------------------------------------------- Initial Offering Date: April 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.64 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $13.77 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.64):(1) 6.91% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.078582 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.942984 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 39% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: -------------------------------------------------------- 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.64 $14.65 (6.89)% $15.06 $13.36 - -------------------------------------------------------------------------------- NAV $13.77 $14.58 (5.56)% $15.25 $13.59 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Hospitals 24% 24% - -------------------------------------------------------------------------------- Transportation 17 17 - -------------------------------------------------------------------------------- Housing 15 15 - -------------------------------------------------------------------------------- Tobacco 11 9 - -------------------------------------------------------------------------------- Lease Revenue 5 9 - -------------------------------------------------------------------------------- City, County & State 5 5 - -------------------------------------------------------------------------------- Education 5 5 - -------------------------------------------------------------------------------- Power 5 4 - -------------------------------------------------------------------------------- Tax Revenue 5 4 - -------------------------------------------------------------------------------- Industrial & Pollution Control 4 4 - -------------------------------------------------------------------------------- Other 4 4 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 28% 26% - -------------------------------------------------------------------------------- AA/Aa -- 4 - -------------------------------------------------------------------------------- A 31 44 - -------------------------------------------------------------------------------- BBB/Baa 33 18 - -------------------------------------------------------------------------------- B 4 4 - -------------------------------------------------------------------------------- Not Rated 4 4 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 11 TRUST SUMMARIES AUGUST 31, 2003 - --------------------------------------------------- BLACKROCK NEW YORK INSURED MUNICIPAL INCOME TRUST - --------------------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BSE - -------------------------------------------------------------------------------- Initial Offering Date: October 31, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.28 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $13.45 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.28):(1) 6.78% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.075 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.900 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 39% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------ 8/31/03 HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.28 $15.15 $13.15 - -------------------------------------------------------------------------------- NAV $13.45 $15.17 $13.23 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN ------------------------------------------------------------- SECTOR AUGUST 31, 2003 ------------------------------------------------------------- Transportation 33% ------------------------------------------------------------- Education 29 ------------------------------------------------------------- Hospital 14 ------------------------------------------------------------- Tobacco 10 ------------------------------------------------------------- Tax Revenue 7 ------------------------------------------------------------- Lease Revenue 4 ------------------------------------------------------------- Water & Sewer 3 ------------------------------------------------------------- CREDIT BREAKDOWN* ------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 ------------------------------------------------------------- AAA/Aaa 82% ------------------------------------------------------------- AA/Aa 2 ------------------------------------------------------------- A 9 ------------------------------------------------------------- BBB/Baa 7 ------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 12 TRUST SUMMARIES AUGUST 31, 2003 - ----------------------------------------- BLACKROCK NEW YORK MUNICIPAL BOND TRUST - ----------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BQH - -------------------------------------------------------------------------------- Initial Offering Date: April 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.35 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $14.15 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.35):(1) 6.93% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.077099 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.925188 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(2) 39% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ----------------------------------------------------- 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.35 $14.50 (7.93)% $15.00 $13.02 - -------------------------------------------------------------------------------- NAV $14.15 $14.83 (4.59)% $15.53 $14.03 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Transportation 14% 18% - -------------------------------------------------------------------------------- Education 12 12 - -------------------------------------------------------------------------------- Tobacco 11 13 - -------------------------------------------------------------------------------- Hospitals 11 7 - -------------------------------------------------------------------------------- City, County & State 10 10 - -------------------------------------------------------------------------------- Housing 9 13 - -------------------------------------------------------------------------------- Water & Sewer 9 8 - -------------------------------------------------------------------------------- Tax Revenue 8 8 - -------------------------------------------------------------------------------- Lease Revenue 5 4 - -------------------------------------------------------------------------------- Industrial & Pollution Control 4 -- - -------------------------------------------------------------------------------- Power 3 3 - -------------------------------------------------------------------------------- Other 4 4 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 21% 21% - -------------------------------------------------------------------------------- AA/Aa 26 30 - -------------------------------------------------------------------------------- A 38 41 - -------------------------------------------------------------------------------- BBB/Baa 7 4 - -------------------------------------------------------------------------------- CCC/Caa 4 -- - -------------------------------------------------------------------------------- Not Rated 4 4 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 13 TRUST SUMMARIES AUGUST 31, 2003 - ---------------------------------------------- BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II - ---------------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: BFY - -------------------------------------------------------------------------------- Initial Offering Date: July 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $13.12 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $13.36 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($13.12):(1) 7.20% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.07875 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.94500 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 40% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------- 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $13.12 $15.10 (13.11)% $15.10 $12.95 - -------------------------------------------------------------------------------- NAV $13.36 $14.47 (7.67)% $14.96 $13.17 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Education 23% 16% - -------------------------------------------------------------------------------- Transportation 21 38 - -------------------------------------------------------------------------------- Tobacco 10 12 - -------------------------------------------------------------------------------- Tax Revenue 9 7 - -------------------------------------------------------------------------------- Industrial & Pollution Control 9 -- - -------------------------------------------------------------------------------- Hospitals 9 3 - -------------------------------------------------------------------------------- City, County & State 8 6 - -------------------------------------------------------------------------------- Water & Sewer 5 12 - -------------------------------------------------------------------------------- Housing 5 3 - -------------------------------------------------------------------------------- Power 1 3 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 21% 33% - -------------------------------------------------------------------------------- AA/Aa 45 55 - -------------------------------------------------------------------------------- A 27 6 - -------------------------------------------------------------------------------- BBB/Baa 4 -- - -------------------------------------------------------------------------------- CCC/Caa 3 6 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 14 TRUST SUMMARIES AUGUST 31, 2003 - ----------------------------------------- BLACKROCK VIRGINIA MUNICIPAL BOND TRUST - ----------------------------------------- TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: BHV - -------------------------------------------------------------------------------- Initial Offering Date: April 30, 2002 - -------------------------------------------------------------------------------- Closing Market Price as of 8/31/03: $14.40 - -------------------------------------------------------------------------------- Net Asset Value as of 8/31/03: $14.46 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 8/31/03 ($14.40):(1) 6.04% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.072428 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.869136 - -------------------------------------------------------------------------------- Leverage as of 8/31/03:(3) 38% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------ 8/31/03 8/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- Market Price $14.40 $15.20 (5.26)% $16.01 $14.20 - -------------------------------------------------------------------------------- NAV $14.46 $14.90 (2.95)% $16.17 $14.25 - -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- Water & Sewer 19% 19% - -------------------------------------------------------------------------------- Hospitals 19 13 - -------------------------------------------------------------------------------- City, County & State 17 19 - -------------------------------------------------------------------------------- Transportation 16 20 - -------------------------------------------------------------------------------- Housing 13 11 - -------------------------------------------------------------------------------- Education 5 4 - -------------------------------------------------------------------------------- Lease Revenue 4 10 - -------------------------------------------------------------------------------- Tobacco 3 -- - -------------------------------------------------------------------------------- Other 4 4 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 47% 47% - -------------------------------------------------------------------------------- AA/Aa 16 24 - -------------------------------------------------------------------------------- A 21 22 - -------------------------------------------------------------------------------- BBB/Baa 3 -- - -------------------------------------------------------------------------------- Not Rated 13 7 - -------------------------------------------------------------------------------- - ---------- * Using the higher of S&P's, Moody's or Fitch's rating. 15 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ------------------------------------------ BLACKROCK INSURED MUNICIPAL INCOME TRUST - ------------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--157.1% ALABAMA--12.2% AAA $40,000(3) Jefferson Cnty. Swr., Ser. D, 5.00%, 8/01/12, FGIC ........................... N/A $ 43,429,242 CALIFORNIA--26.1% AAA 24,530 California, GO, 5.00%, 2/01/31, MBIA ......................................... 02/13 @ 100 23,890,748 A- 14,000 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/22 ...... 05/12 @ 101 14,102,200 AAA 10,000 California Infrastructure & Econ. Dev., Bay Area Toll Brdgs., Ser. A, 5.00%, 7/01/36, AMBAC ............................................................. 07/13 @ 100 9,770,500 Los Angeles Dept. of Wtr. & Pwr., AAA 5,000 Pwr. Sys. Rev., Ser. A-2, 5.00%, 7/01/27, MBIA ............................. 07/13 @ 100 4,938,500 AAA 6,810 Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/40, FGIC .............................. 07/12 @ 100 6,761,853 AAA 12,850 Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, MBIA .............................. 07/11 @ 100 12,758,508 San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, MBIA, AAA 53,000 Zero Coupon, 1/15/31 ....................................................... No Opt. Call 11,116,220 AAA 48,690 Zero Coupon, 1/15/32 ....................................................... No Opt. Call 9,645,976 ------------ 92,984,505 ------------ GEORGIA--7.7% Atlanta Wtr. & Wstwtr., Ser. A, AAA 9,555 5.00%, 11/01/38, FGIC ...................................................... 05/09 @ 101 9,371,640 AAA 8,145 5.00%, 11/01/39, MBIA ...................................................... 05/12 @ 100 7,987,231 Baa1 10,000 De Kalb Cnty. Dev. Auth., PCR, General Mtrs. Corp. Proj., 6.00%, 3/15/21 ..... 12/12 @ 101 10,096,000 ------------ 27,454,871 ------------ ILLINOIS--12.5% AAA 7,300 Chicago, GO, Neighborhoods Alive 21 Prog., Ser. A, 5.00%, 1/01/41, FGIC ...... 01/11 @ 100 7,039,244 AAA 11,550 Chicago Spec. Transp., 5.25%, 1/01/31, AMBAC ................................. 01/11 @ 101 11,588,808 AAA 9,150 Chicago Wtr., 5.00%, 11/01/31, AMBAC ......................................... 11/11 @ 100 8,895,264 Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., MBIA, AAA 10,000 Ser. A, Zero Coupon, 12/15/25 .............................................. No Opt. Call 2,797,100 AAA 30,000 Ser. A, Zero Coupon, 12/15/29 .............................................. No Opt. Call 6,588,000 AAA 25,000 Ser. A, Zero Coupon, 6/15/35 ............................................... No Opt. Call 3,920,000 AAA 15,000 Ser. B, Zero Coupon, 6/15/28 ............................................... No Opt. Call 3,601,050 ------------ 44,429,466 ------------ INDIANA--2.6% AAA 9,400 New Albany-Floyd Cnty. Sch. Bldg. Corp., 5.125%, 1/15/27, FGIC ............... 07/12 @ 100 9,397,556 ------------ MASSACHUSETTS--11.7% Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, AAA 16,735 5.00%, 1/01/37, MBIA ....................................................... 01/07 @ 102 16,367,165 AAA 26,000 5.00%, 1/01/39, AMBAC ...................................................... 01/09 @ 101 25,416,820 ------------ 41,783,985 ------------ MICHIGAN--1.4% AAA 5,000 Detroit City Sch. Dist., GO, Ser. A, 5.125%, 5/01/31, FSA .................... 05/12 @ 100 5,002,050 ------------ NEVADA--7.7% AAA 6,000 Reno Transp. Proj., 5.125%, 6/01/32, AMBAC ................................... 06/12 @ 100 5,969,640 Truckee Meadows Wtr. Auth., Ser. A, FSA, AAA 10,000 5.00%, 7/01/25 ............................................................. 07/11 @ 100 9,947,300 AAA 6,500 5.125%, 7/01/30 ............................................................ 07/11 @ 100 6,497,595 AAA 5,000 5.25%, 7/01/34 ............................................................. 07/11 @ 100 5,025,250 ------------ 27,439,785 ------------ NEW JERSEY--1.7% BBB 8,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 ............................... 06/12 @ 100 5,982,160 ------------
See Notes to Financial Statements. 16
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- NEW YORK--5.8% AAA $10,000 Met. Transp. Auth., Dedicated Tax Fund, Ser. A, 5.00%, 11/15/30, MBIA ....... 11/12 @ 100 $ 9,884,100 AAA 11,000 Triborough Brdg. & Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA ............... 11/12 @ 100 10,852,270 ------------ 20,736,370 ------------ OHIO--0.8% BBB 2,500 Cuyahoga Cnty. Hosp. Facs., Canton Inc. Proj., 7.50%, 1/01/30 ............... 07/10 @ 101 2,719,100 ------------ PENNSYLVANIA--7.4% BBB+ 5,000 Lebanon Cnty. Hlth. Facs. Auth., Good Samaritan Hosp. Proj., 6.00%, 11/15/35 ........................................................... 11/12 @ 101 4,889,200 Philadelphia Gas Wks., FSA, AAA 5,200 Ser. 3, 5.125%, 8/01/31 ................................................... 08/11 @ 100 5,181,748 AAA 16,625 Ser. 4, 5.00%, 8/01/32 .................................................... 08/13 @ 100 16,255,094 ------------ 26,326,042 ------------ RHODE ISLAND--4.6% BBB 21,495 Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42 ....................... 06/12 @ 100 16,481,076 ------------ SOUTH CAROLINA--14.5% AAA 5,000 So. Carolina Pub. Svc. Auth., Ser. B, 5.50%, 1/01/36, FSA ................... 01/12 @ 100 5,179,150 So. Carolina Transp. Infrastructure Bank, AMBAC, AAA 9,000 Ser. A, 5.00%, 10/01/29 ................................................... 10/11 @ 100 8,994,330 AAA 12,750 Ser. A, 5.00%, 10/01/33 ................................................... 10/12 @ 100 12,538,477 AAA 12,660 Ser. B, 5.125%, 10/01/26 .................................................. 10/11 @ 100 12,848,634 A- 15,000 Tobacco Settlement Rev. Mgmt. Auth., Ser. B, 6.375%, 5/15/28 ................ 05/11 @ 101 12,032,850 ------------ 51,593,441 ------------ SOUTH DAKOTA--0.9% A- 4,165 Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32 ..... 06/12 @ 101 3,362,155 ------------ TENNESSEE--3.7% Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, FSA, AAA 11,705 Zero Coupon, 1/01/22 ...................................................... 001/13 @ 59.5606 4,083,757 AAA 9,260 Zero Coupon, 1/01/23 ...................................................... 001/13 @ 56.0106 3,026,446 AAA 8,500 Zero Coupon, 1/01/24 ...................................................... 001/13 @ 52.7409 2,603,550 AAA 6,850 Zero Coupon, 1/01/25 ...................................................... 001/13 @ 49.7102 1,976,842 AAA 5,000 Zero Coupon, 1/01/26 ...................................................... 001/13 @ 46.7801 1,355,050 ------------ 13,045,645 ------------ TEXAS--20.8% BBB 3,700 Comal Cnty. Hlth. Facs., Hlth. Care Sys., McKenna Mem. Proj., Ser. A, 6.25%, 2/01/32 ............................................................ 02/13 @ 100 3,627,739 Harris Cnty., AAA 7,485 GO, Zero Coupon, 8/15/25, MBIA ............................................ No Opt. Call 2,133,899 AAA 10,915 GO, Zero Coupon, 8/15/28, MBIA ............................................ No Opt. Call 2,588,929 AAA 5,510 Toll Road Rev., 5.00%, 8/15/30, FSA ....................................... 08/12 @ 100 5,391,094 Harris Cnty. Sports Auth., Ser. H, MBIA, AAA 5,785 Zero Coupon, 11/15/38 ..................................................... 11/31 @ 64.9 1 731,571 AAA 6,160 Zero Coupon, 11/15/39 ..................................................... 111/31 @ 60.9716 731,315 AAA 25,000 Houston Wtr. & Swr. Sys., Ser. A, 5.00%, 12/01/30, FSA ...................... 12/12 @ 100 24,456,750 AAA 10,350 Texas St. Tpke. Auth., Dallas No. Thruway, George Bush Tpke., 5.25%, 1/01/23, FGIC ............................................................. 01/06 @ 102 10,451,844 AAA 22,000 Texas Tpke. Auth., Central Sys. Rev., Ser. A, 5.00%, 8/15/42, AMBAC ......... 08/12 @ 100 21,240,340 BBB+ 3,000 Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31 .......... 07/12 @ 100 2,916,990 ------------ 74,270,471 ------------ VIRGINIA--2.0% Chesterfield Cnty. Indl. Dev. Auth., PCR, Elec. & Pwr. Co., A3 3,000 Ser. A, 5.875%, 6/01/17 ................................................... 11/10 @ 102 3,151,920 A3 4,000 Ser. B, 5.875%, 6/01/17 ................................................... 11/10 @ 102 4,180,440 ------------ 7,332,360 ------------ WASHINGTON--11.4% AAA 3,655 Chelan Cnty. Pub. Util. Dist. 1, Chelan Hydro Sys., Ser. C, 5.125%, 7/01/33, AMBAC ............................................................ 07/12 @ 100 3,636,323 AAA 6,450 King Cnty. Swr., 5.00%, 1/01/31, FGIC ....................................... 01/12 @ 100 6,300,425 AAA 9,500 Seattle, GO, Ser. F, 5.125%, 12/15/28, MBIA ................................. 12/08 @ 100 9,489,550 BBB 7,545 Tobacco Settlement Auth., 6.625%, 6/01/32 ................................... 06/13 @ 100 6,229,001 Washington, GO, FSA, AAA 6,380 Ser. A, 5.00%, 7/01/25 .................................................... 07/11 @ 100 6,313,010 AAA 9,000 Ser. B, 5.00%, 1/01/27 .................................................... 01/12 @ 100 8,818,020 ------------ 40,786,329 ------------
See Notes to Financial Statements. 17
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== WISCONSIN--1.6% BBB $ 7,000 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 .............................. 06/12 @ 100 $ 5,554,990 ------------- TOTAL LONG-TERM INVESTMENTS (COST $571,881,096) 560,111,599 ------------- FLORIDA--0.2% F1+ 690 Orange Cnty. Sch. Brd., COP, Ser. B-1, Zero Coupon, 9/02/03, AMBAC, FRDD(4) ... N/A 690,000 ------------- NEW YORK--0.2% A1+ 700 New York City Mun. Wtr. Fin. Auth., Ser. G, Zero Coupon, 9/02/03, FGIC, FRDD(4) ............................................................... N/A 700,000 ------------- ------ SHARES (000) ------ MONEY MARKET FUND--0.1% NR 250 AIM Tax Free Investment Co. Cash Reserve Portfolio ............................ N/A 250,000 ------------- TOTAL SHORT-TERM INVESTMENTS (COST $1,640,000) ................................ 1,640,000 ------------- TOTAL INVESTMENTS--157.6% (COST $573,521,096) ................................. $ 561,751,599 Other assets in excess of liabilities--6.6% ................................... 23,687,088 Preferred shares at redemption value, including dividends payable--(64.2)% .... (229,001,028) ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................ $ 356,437,659 =============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 82.7% of the Trust's total investments. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FRDD -- Floating Rate Daily Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue - -------------------------------------------------------------------------------- See Notes to Financial Statements. 18 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - -------------------------------- BLACKROCK MUNICIPAL BOND TRUST - --------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--158.2% ALABAMA--11.9% BBB $ 9,250 Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.50%, 9/01/25 ............................................................. 09/05 @ 102 $ 9,520,747 A2 7,500 Huntsville Hlth. Care Auth., Ser. A, 5.75%, 6/01/31 .......................... 06/11 @ 101 7,511,175 ------------ 17,031,922 ------------ ALASKA--7.2% AA+ 10,000 Valdez Marine Term., BP Pipelines Inc. Proj., Ser. A, 5.85%, 8/01/25 ......... 09/03 @ 102 10,247,000 ------------ CALIFORNIA--8.3% AAA 4,000 California Infrastructure & Econ. Dev., Bay Area Toll Brdgs., Ser. A, 5.00%, 7/01/36, AMBAC ...................................................... 07/13 @ 100 3,908,200 B- 8,000 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. B, 7.50%, 12/01/24 .................................................... 12/12 @ 102 6,497,680 NR 1,585 Val Verde Unified School Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28 ... 10/13 @ 102 1,508,048 ------------ 11,913,928 ------------ CONNECTICUT--7.3% Connecticut Dev. Auth., Connecticut Lt. & Pwr., PCR, A3 6,500 Ser. A, 5.85%, 9/01/28 ..................................................... 10/08 @ 102 6,758,115 A3 3,500 Ser. B, 5.95%, 9/01/28 ..................................................... 10/08 @ 102 3,632,125 ------------ 10,390,240 ------------ DELAWARE--7.5% NR 10,500(3) Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 10,700,025 ------------ DISTRICT OF COLUMBIA--10.4% Dist. of Columbia, AAA 33,450 Georgetown Univ., Ser. A, Zero Coupon, 4/01/38, MBIA ....................... 04/11 @ 20.243 4,147,466 BBB 5,580 Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 .............................. 05/11 @ 101 4,609,805 AAA 6,000 Tax Incr., Gallary Place Proj., 5.40%, 7/01/31, FSA .......................... 07/12 @ 100 6,097,320 ------------ 14,854,591 ------------ FLORIDA--16.5% BBB- 6,200 Martin Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25 ........................................................... 12/04 @ 102 6,411,792 A 10,000 Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32 . 11/12 @ 101 9,882,000 AAA 7,255 Palm Beach Cnty. Hsg. Fin. Auth., Mult. Fam. Rev., Indian Trace Apts., Ser. A, 5.625%, 1/01/44, FSA ............................................... 01/12 @ 100 7,304,697 ------------ 23,598,489 ------------ GEORGIA--0.9% AAA 1,265 Atlanta Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA ........................ 05/12 @ 100 1,240,497 ------------ ILLINOIS--20.8% AAA 23,065 Bolingbrook, GO, Ser. B, Zero Coupon, 1/01/36, FGIC .......................... 01/12 @ 23.018 3,200,730 AAA 9,880 Chicago, GO, Ser. A, 5.50%, 1/01/38, MBIA .................................... 01/11 @ 101 10,172,843 BBB 6,000 Illinois Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/34 ........................................... 05/07 @ 100 6,003,240 A 6,000 Illinois Hlth. Facs. Auth., Lake Forest Hosp., Ser. A, 5.75%, 7/01/29 ........ 07/12 @ 100 5,976,420 Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., Ser. A, MBIA, AAA 10,000 Zero Coupon, 6/15/35 ..................................................... No Opt. Call 1,568,000 AAA 10,000 Zero Coupon, 12/15/36 .................................................... No Opt. Call 1,431,500 AAA 10,000 Zero Coupon, 12/15/37 .................................................... No Opt. Call 1,345,400 ------------ 29,698,133 ------------ INDIANA--1.4% NR 2,020 Mult. Fam. Hsg., Canterbury House Apts., Ser. 1, 5.90%, 12/01/34 ............. 12/11 @ 100 1,967,844 ------------ KANSAS--3.6% A- 5,000 Wichita Arpt. Auth., Arpt. Facs. Rev., Cessna Citation Svc. Ctr., Ser. A, 6.25%, 6/15/32 ..................................................... 06/12 @ 101 5,126,800 ------------ LOUISIANA--0.8% Baa1 1,165 Louisiana Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38 ..... 06/13 @ 102 1,125,460 ------------ MARYLAND--0.8% NR 1,250 Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31 ........... 07/13 @ 101 1,218,450 ------------ MASSACHUSETTS--5.1% AAA 7,500 Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/37, MBIA . 01/07 @ 102 7,335,150 ------------
See Notes to Financial Statements. 19
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== MICHIGAN--3.2% BBB $ 4,500 Delta Cnty. Econ. Dev. Corp., Env. Impvt. Rev., Mead Westvaco Escanaba, Ser. A, 6.25%, 4/15/27 ..................................................... 04/12 @ 100 $ 4,527,090 ------------ NEVADA--0.9% NR 1,400 Las Vegas Spec. Impvt. Dist. No. 809, Summerlin Area, 5.65%, 6/01/23 ......... 12/03 @ 103 1,275,204 ------------ NEW JERSEY--14.2% New Jersey Econ. Dev. Auth., B 3,000 Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........................... 11/10 @ 101 2,543,970 Baa3 7,500 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 .............................. No Opt. Call 8,290,200 BBB 11,155 Tobacco Settlement Fin. Corp., 7.00%, 6/01/41 ................................ 06/13 @ 100 9,528,936 ------------ 20,363,106 ------------ OREGON--0.7% NR 1,000 Mult. Fam. Hsg., Pacific Tower Apts., Ser. 6, 6.05%, 11/01/34 ................ 06/12 @ 100 964,640 ------------ RHODE ISLAND--3.7% BBB 7,000 Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42 ........................ 06/12 @ 100 5,367,180 ------------ SOUTH CAROLINA--4.2% So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., A- 5,000 Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%, 11/15/30 ...................... 11/12 @ 100 4,962,500 BBB 1,000 Palmetto Hlth. Alliance, Ser. C, 7.00%, 8/01/30 ............................ 08/13 @ 100 1,043,930 ------------ 6,006,430 ------------ TEXAS--20.9% AAA 11,690 Harris Cnty. Houston Sports Auth., Ser. G, Zero Coupon, 11/15/41, MBIA ....... 11/31 @ 53.779 1,222,189 NR 2,840 Mult. Fam. Hsg., Copperwood Ranch Apts., Ser. 9, 5.95%, 11/01/35 ............. 06/12 @ 100 2,761,815 BBB 10,000 Red River Auth., PCR, Celanese Proj., Ser. B, 6.70%, 11/01/30 ................ 05/12 @ 101 10,384,800 AAA 60,000 Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/35, AMBAC ............ 08/12 @ 25.665 8,855,400 BBB+ 6,840 Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31 ........... 07/12 @ 100 6,650,737 ------------ 29,874,941 ------------ WEST VIRGINIA--2.1% AAA 20,255 West Virginia Hsg. Dev. Fund, Hsg. Fin. Rev., Zero Coupon, 11/01/37 .......... No Opt. Call 2,970,193 ------------ WISCONSIN--5.8% Wisconsin Hlth. & Edl. Facs. Auth., A- 1,350 Aurora Hlth. Care, 6.40%, 4/15/33 .......................................... 08/13 @ 100 1,346,504 A 7,000 Wheaton Franciscan Svcs., 5.75%, 8/15/30 ................................... 02/12 @ 101 7,007,560 ------------ 8,354,064 ------------ TOTAL LONG-TERM INVESTMENTS (COST $227,519,340) .............................. $226,151,377 ------------ ------- SHARES (000) ------- MONEY MARKET FUND--0.8% NR 1,150 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $1,150,000) ......... N/A 1,150,000 ------------ TOTAL INVESTMENTS--159.0% (COST $228,669,340) ................................ $227,301,377 Other assets in excess of liabilities--4.3% .................................. 6,157,581 Preferred shares at redemption value, including dividends payable--(63.3)% ... (90,508,091) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $142,950,867 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. This security may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of August 31, 2003, the Trust held 7.5% of its net assets, with a current market value of $10,700,025, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation PCR -- Pollution Control Revenue MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 20 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ------------------------------------- BLACKROCK MUNICIPAL INCOME TRUST II - -------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--158.2% ALABAMA--1.0% AAA $ 3,000 Birmingham Wtr. Wks. & Swr. Brd., Wtr. & Swr. Rev., Ser. B, 5.00%, 1/01/43, MBIA ........................................................ 01/13 @ 100 $ 2,924,220 ------------ CALIFORNIA--9.7% A 2,250 Agua Caliente Band, Cahuilla Indians, 6.00%, 7/01/18 .......................... 07/13 @ 100 2,237,625 AAA 5,000 California Infrastructure & Econ. Dev., Bay Area Toll Brdgs., Ser. A, 5.00%, 7/01/36, AMBAC ....................................................... 07/13 @ 100 4,885,250 A 3,500 California Mobile Home Park Fin. Auth., Palomar Estates East & West, Ser. A, 5.25%, 3/15/34, ACA ................................................. 03/13 @ 102 3,259,375 A- 5,000 California Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33 ............................................................. 04/13 @ 100 4,929,250 B- 11,410 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 ..................................................... 12/12 @ 102 9,267,316 NR 4,620 San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.625%, 8/01/27 .......................................... 08/11 @ 101 4,680,014 ------------ 29,258,830 ------------ COLORADO--4.6% AA 10,000 Colorado Hlth. Facs. Auth., Catholic Hlth. Initiatives, Ser. A, 5.50%, 3/01/32 .............................................................. 03/12 @ 100 9,861,500 AAA 4,000 Northwest Pkwy. Pub. Hwy. Auth., Ser. A, 5.25%, 6/15/41, FSA .................. 06/11 @ 102 4,015,960 ------------ 13,877,460 ------------ CONNECTICUT--1.7% A3 5,000 Connecticut Dev. Auth., Connecticut Lt. & Pwr., PCR, Ser. B, 5.95%, 9/01/28 ... 10/08 @ 102 5,188,750 ------------ DISTRICT OF COLUMBIA--5.8% Dist. of Columbia, AAA 1,875 Nat. Academy of Science Proj. Ser. A, 5.00%, 1/01/28, AMBAC ................. 01/09 @ 102 1,828,688 BBB 7,500 Tobacco Settlement Fin. Corp., 6.50%, 5/15/33 ............................... No. Opt. Call 6,148,125 BBB 11,500 Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 ............................... 05/11 @ 101 9,500,495 ------------ 17,477,308 ------------ FLORIDA--15.8% Baa3 4,500 Capital Trust Agcy., Air Cargo Fort Lauderdale Proj., 5.75%, 1/01/32 .......... 01/14 @ 101 4,185,630 Fishhawk Cmnty. Dev. Dist. II, Spec. Assmnt. Rev, NR 3,000 Ser. A, 6.25%, 5/01/34 ...................................................... 05/13 @ 101 2,854,800 NR 7,000 Ser. B, 5.00%, 11/01/07 ..................................................... No Opt. Call 6,973,960 A 2,650 Leesburg Hosp., Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32 ................ 07/12 @ 100 2,557,648 NR 3,200 Live Oak Comm. Dev., Dist. No. 1 Spec. Assmnt. Rev., Ser. A, 6.30%, 5/01/34 .............................................................. 05/13 @ 101 3,053,920 A 6,850 Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32 ............................................................ 11/12 @ 101 6,769,170 AA- 14,000 Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33 .......... 05/13 @ 100 13,445,460 NR 4,625 Sumter Cnty. Ind. Dev. Auth., No. Sumter Util. Co. LLC, 6.90%, 10/01/34 ....... 10/09 @ 100 4,381,540 NR 3,715 Sumter Landing Cmnty. Dev., Spec. Assmnt. Rev, 6.875%, 5/01/23 ................ 05/13 @ 101 3,630,855 ------------ 47,852,983 ------------ GEORGIA--1.7% AAA 5,175 Atlanta Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA ......................... 05/12 @ 100 5,074,760 ------------ ILLINOIS--19.4% AAA 4,000 Bolingbrook, GO, Ser. A, 5.375%, 1/01/38, FGIC ................................ 01/12 @ 100 4,055,000 AAA 1,875 Chicago, GO, Ser. A, 5.50%, 1/01/38, MBIA ..................................... 01/11 @ 101 1,930,575 A 7,500 Illinois Dev. Fin. Auth., Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig., 5.65%, 11/15/24 ............................................................. 11/09 @ 101 7,425,600 A2 8,000 Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22 .......... 01/13 @ 100 7,843,440 AAA 15,000 Illinois Sports Facs. Auth., Dedicated St. Tax Supported Rev., Zero Coupon, 6/15/30, AMBAC .............................................................. 06/15 @ 101 10,210,350 Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., Ser. A, MBIA, AAA 25,000 Zero Coupon, 12/15/29 ..................................................... No Opt. Call 5,490,000 AAA 45,190 Zero Coupon, 6/15/33 ...................................................... No Opt. Call 8,011,735 AAA 5,000 Zero Coupon, 6/15/40 ...................................................... No Opt. Call 576,550 AAA 9,500 5.25%, 6/15/42 ............................................................ 06/12 @ 101 9,516,150 AAA 3,800 O'Hare Intl. Arpt., Gen. Arpt., Ser. C-2, 5.25%, 1/01/30, FSA ................. 01/14 @ 100 3,725,824 ------------ 58,785,224 ------------ INDIANA--10.1% Baa1 5,500 Fort Wayne, PCR, Gen. Mtrs. Corp. Proj., 6.20%, 10/15/25 ...................... 12/12 @ 101 5,640,910 AA 5,000 Indiana Hlth. Fac. Fin. Auth., Ascension Hlth., Ser. F, 5.375%, 11/15/25 ...... 11/12 @ 101 4,907,500 AAA 19,735 Indianapolis Local Pub. Impvt. Bond Bank, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/33, MBIA ........................................................ 07/12 @ 100 19,833,478 ------------ 30,381,888 ------------
See Notes to Financial Statements. 21
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LOUISIANA--0.8% Baa1 $ 2,485 Louisiana Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38 ..... 06/13 @ 102 $ 2,400,659 ------------ MARYLAND--2.0% Baa3 5,000 Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33 ............................................................ 10/13 @ 100 4,929,350 A3 1,000 Maryland Hlth. & Higher Edl. Facs. Auth., Union Hosp. of Cecil Cnty., ........ 5.625%, 7/01/32 07/12 @ 100 1,001,900 ------------ 5,931,250 ------------ MASSACHUSETTS--3.2% AAA 10,000 Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/39, AMBAC ............................................................. 01/09 @ 101 9,775,700 ------------ MISSISSIPPI--1.8% BBB 4,950 Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22 ............................................................. No Opt. Call 5,544,099 ------------ MISSOURI--2.0% NR 6,000 Dept. of Transp., Rt. 370/ Missouri Bottom Rd./Taussig Rd. Transp. Dev., 7.20%, 5/01/33 ............................................................. 05/13 @ 100 6,059,040 ------------ NEVADA--2.8% NR 3,000 Henderson Local Impvt. Dist. No. T-14, 5.80%, 3/01/23 ........................ 03/04 @ 103 2,854,560 No. Las Vegas Local Impvt., Spec. Impvt. Dist. 60 Aliante, NR 2,500 6.125%, 12/01/17 ........................................................... 12/03 @ 103 2,488,750 NR 3,000 6.40%, 12/01/22 ............................................................ 12/03 @ 103 2,985,540 ------------ 8,328,850 ------------ NEW JERSEY--9.1% New Jersey Econ. Dev. Auth., B 10,100 Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........................... 11/10 @ 101 8,564,699 Baa3 7,475 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 .............................. No Opt. Call 8,262,566 Baa3 10,000 Kapkowski Road Landfill Proj., 6.50%, 4/01/31 .............................. No Opt. Call 10,740,200 ------------ 27,567,465 ------------ NEW MEXICO--1.6% Baa1 5,200 New Mexico Hsg. Auth., Region III, Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38 ..................................................... 01/13 @ 102 4,725,552 ------------ NEW YORK--2.9% Caa2 8,800 Port Auth. of NY & NJ, Spec. Oblig. Rev., Cont'l/Eastern Proj. LaGuardia, 9.00%, 12/01/10 ................................................. 09/03 @ 100 8,829,128 ------------ PENNSYLVANIA--2.8% BBB 4,000 Lehigh Cnty. Gen. Purp. Auth., St. Lukes Bethlehem Hosp., 5.375%, 8/15/33 .... 08/13 @ 100 3,696,320 A3 5,175 Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Exempt Facs. Rev., Ser. A, 6.375%, 11/01/41 ................................................... 05/11 @ 101 4,849,907 ------------ 8,546,227 ------------ RHODE ISLAND--4.2% BBB 16,620 Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42 ........................ 06/12 @ 100 12,743,219 ------------ SOUTH CAROLINA--10.5% Greenwood Cnty. Hosp., Self Mem. Hosp. Facs., A+ 3,280 5.50%, 10/01/26 ............................................................ 10/11 @ 100 3,208,627 A+ 3,250 5.50%, 10/01/31 ............................................................ 10/11 @ 100 3,142,360 NR 4,000 Lancaster Cnty. Assmnt., Edgewater Impvt. Dist. Ser. A, 6.875%, 11/01/35 ..... 11/13 @ 101 3,813,080 So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., A- 10,000 Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%, 11/15/30 ...................... 11/12 @ 100 9,925,000 AA 3,750 Georgetown Mem. Hosp., 5.375%, 2/01/30, RAA ................................ 08/11 @ 100 3,777,562 BBB 2,640 Palmetto Hlth. Alliance, Ser. A, 6.25%, 8/01/31 ............................ 08/13 @ 100 2,595,490 BBB 5,000 Palmetto Hlth. Alliance, 6.875%, 8/01/27 ................................... 08/13 @ 100 5,159,400 ------------ 31,621,519 ------------ SOUTH DAKOTA--2.7% BBB 10,000 Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32 ...... 06/12 @ 101 8,072,400 ------------ TENNESSEE--2.5% AAA 20,405 Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/21, FSA .................................................. 01/13 @ 63.44 7,653,099 ------------ TEXAS--16.8% A- 1,750 Crawford Ed. Facs. Corp., Higher Ed. Rev., Univ. of St. Thomas Proj., 5.375%, 10/01/27 ........................................................... 10/12 @ 100 1,645,385 AAA 1,550 Dallas Ft. Worth Intl. Arpt., Ser. A, 5.00%, 11/01/35, MBIA .................. 11/09 @ 100 1,453,822 BBB 20,000 Gulf Coast Wst. Disp. Auth., Environ. Impvt. Rev., Ser. A, 6.10%, 8/01/24 .... 08/12 @ 100 19,762,200 BBB 5,900 Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B, 5.75%, 11/01/11 ........ No Opt. Call 6,003,958 Texas Tpke. Auth., Central Sys. Rev., AMBAC, AAA 73,370 Zero Coupon, 8/15/36 ....................................................... 08/12 @ 24.171 10,182,289 AAA 65,000 Zero Coupon, 8/15/37 ....................................................... 08/12 @ 22.708 8,462,350 AAA 27,600 Zero Coupon, 8/15/38 ....................................................... 08/12 @ 21.384 3,378,240 ------------ 50,888,244 ------------ UTAH--1.3% BBB 4,000 Tooele Cnty. Hazardous Wst. Treat., Union Pacific Proj., Ser. A, 5.70%, 11/01/26 ............................................................ 04/08 @ 102 3,934,000 ------------
See Notes to Financial Statements. 22
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== VIRGINIA--7.2% NR $13,500 Alexandria Redev. & Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34 .................................................................... 04/08 @ 103 $ 12,665,970 AAA 9,000 Halifax Cnty. Indl. Dev. Auth., Exempt Fac. Rev., Old Dominion Elec. Coop. Proj., 5.625%, 6/01/28, AMBAC ........................................ 06/13 @ 101 9,247,500 ------------ 21,913,470 ------------ WEST VIRGINIA--1.6% BBB 5,000 Mason Cnty., PCR, Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22 ........ 10/11 @ 100 4,888,950 ------------ WISCONSIN--7.9% BBB 9,100 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 ............................. 06/12 @ 100 7,221,487 Wisconsin Hlth. & Edl. Facs. Auth., A- 3,930 Aurora Hlth. Care, 6.40%, 4/15/33 .......................................... 08/13 @ 100 3,919,821 A- 4,000 Synergy Hlth. Inc., 6.00%, 11/15/32 ........................................ 08/13 @ 100 3,929,800 A 4,000 Wheaton Franciscan Svcs., 5.125%, 8/15/33 .................................. 08/13 @ 100 3,688,240 A 5,000 Wheaton Franciscan Svcs., 5.75%, 8/15/25 ................................... 02/12 @ 101 5,041,750 ------------ 23,801,098 ------------ PUERTO RICO--4.7% A 14,950 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. G, 5.00%, 7/01/42 ........... 07/13 @ 100 14,218,646 ------------ TOTAL LONG-TERM INVESTMENTS (COST $493,307,690) 478,264,038 ------------ SHORT-TERM INVESTMENTS--9.4% CALIFORNIA--0.0% A1 75 California Hlth. Facs. Fin. Auth., Scripps Hlth., Ser. B, 0.78%, 9/03/03, MBIA, FRWD(3) .............................................................. N/A 75,000 ------------ GEORGIA--0.3% A1+ 1,000 Mun. Elec. Auth. Rev., Proj. One, Ser. C, 0.75%, 9/03/03, MBIA, FRWD3 ........ N/A 1,000,000 ------------ MASSACHUSETTS--0.3% A1 900 Massachusetts Hlth. & Edl. Facs. Auth. Rev., Boston Univ., Ser. Q-1, 0.85%, 9/04/03, XLCA, FRWD(3) ..................................................... N/A 900,000 ------------ MISSOURI--0.6% A1+ 1,800 Missouri Hlth. & Edl. Facs. Auth., Edl. Facs. Rev., Washington Univ., Ser. C, 0.80%, 9/02/03, FRDD(3) ............................................ N/A 1,800,000 ------------ NEW YORK--2.7% A1+ 8,300 New York Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys., Ser. C-3, 0.75%, 9/02/03, FRDD(3) ........................................................... N/A 8,300,000 ------------ NORTH CAROLINA--2.5% A1 7,000 Mecklenburg Cnty., COP, 0.85%, 9/04/03, FRWD3 ................................ N/A 7,000,000 A1+ 500 Univ. of No. Carolina Hosp., Chapel Hill, Ser. B, 0.85%, 9/02/03, FRDD(3) .... N/A 500,000 ------------ 7,500,000 ------------ TENNESSEE--0.3% VMIG1 800 Clarksville Pub. Bldg. Auth. Rev., 0.85%, 9/02/03, FRDD3 ..................... N/A 800,000 ------------ VIRGINIA--1.9% A1+ 5,800 Loudoun Cnty. Indl. Dev. Auth., Howard Hughes Med., Ser. C, 0.85%, 9/02/03, FRDD(3) ........................................................... N/A 5,800,000 ------------ ------ SHARES (000) ------ MONEY MARKET FUND--0.8% NR 2,400 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................... N/A 2,400,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $28,575,000) .............................. 28,575,000 ------------ TOTAL INVESTMENTS--167.6% (COST $521,882,690) ................................ $506,839,038 Other assets in excess of liabilities--0.4% .................................. 1,067,872 Preferred shares at redemption value, including dividends payable--(68.0)% ... (205,570,284) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $302,336,626 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FRDD -- Floating Rate Daily Demand FRWD -- Floating Rate Weekly Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue RAA -- Radian Asset Assurance XLCA -- XL Capital Assurance - -------------------------------------------------------------------------------- See Notes to Financial Statements. 23 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ----------------------------------------------------- BLACKROCK CALIFORNIA INSURED MUNICIPAL INCOME TRUST - -----------------------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--163.5% AAA $ 6,500 Benicia Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/23, MBIA ............... No Opt. Call $ 2,143,765 California Cnty. Tobacco Sec. Agcy., BBB 7,405 Sonoma Cnty., 5.875%, 6/01/43 .............................................. 06/12 @ 100 5,381,214 BBB 7,650 Alameda Cnty., 6.00%, 6/01/42 .............................................. 06/12 @ 100 5,719,522 A- 6,500 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.25%, 5/01/20 ....... 05/12 @ 101 6,545,305 AAA 2,385 California Edl. Facs. Auth., Scripps Coll., 5.00%, 8/01/31, MBIA ............. 08/11 @ 100 2,339,637 AAA 4,500 California Infrastructure & Econ. Dev., Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC ............................................................. 04/12 @ 100 4,521,960 AAA 5,000 California Pub. Wks. Brd., Dept. of Gen. Svcs., Ser. A, 5.00%, 12/01/27, AMBAC ............................................................ 12/12 @ 100 4,869,900 Ceres Unified Sch. Dist., Ser. B, FGIC, AAA 3,055 Zero Coupon, 8/01/30 ....................................................... 08/12 @ 34.887 608,067 AAA 3,180 Zero Coupon, 8/01/31 ....................................................... 08/12 @ 32.868 602,578 AAA 3,300 Zero Coupon, 8/01/32 ....................................................... 08/12 @ 30.966 590,799 AAA 3,440 Zero Coupon, 8/01/33 ....................................................... 08/12 @ 29.174 571,900 AAA 3,575 Zero Coupon, 8/01/34 ....................................................... 08/12 @ 27.782 568,211 AAA 3,275 Zero Coupon, 8/01/35 ....................................................... 08/12 @ 26.186 490,464 AAA 2,000 Long Beach Unified Sch. Dist., Ser. D, 5.00%, 8/01/31, FSA ................... 08/10 @ 101 1,961,960 Los Angeles Dept. of Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, FGIC, AAA 5,000 5.00%, 7/01/43 ............................................................. 07/12 @ 100 4,842,300 AAA 5,000 5.125%, 7/01/41 ............................................................ 07/11 @ 100 4,964,400 AAA 5,000 Los Angeles Unified Sch. Dist., Ser. E, 5.125%, 1/01/27, MBIA ................ 07/12 @ 100 5,009,250 Los Angeles Wstwtr. Sys., Ser. A, AAA 5,000 5.00%, 6/01/27, MBIA ....................................................... 06/13 @ 100 4,938,550 AAA 6,025 5.00%, 6/01/32, FGIC ....................................................... 06/12 @ 100 5,908,778 AAA 5,000 No. California Pwr. Agcy., Pub. Pwr. Rev., Hydroelec. Proj. 1, Ser. A, 5.00%, 7/01/28, MBIA ....................................................... 07/08 @ 101 4,930,350 AAA 2,500 No. Orange Cnty. Cmnty. Coll. Dist., Ser. A, 5.00%, 2/01/27, MBIA ............ 08/12 @ 101 2,469,550 AAA 5,000 Riverside Unified Sch. Dist., Ser. A, 5.00%, 2/01/27, FGIC ................... 02/12 @ 101 4,939,100 AAA 5,295 San Diego Cnty. Wtr. Auth., COP, Ser. A, 5.00%, 5/01/32, MBIA ................ 05/12 @ 101 5,193,071 AAA 4,805 San Diego Redev. Agcy., Centre City Proj., Ser. A, 5.00%, 9/01/28, MBIA ...... 09/11 @ 101 4,738,211 AAA 4,000 San Diego Univ. Fndtn. Aux. Org., Ser. A, 5.00%, 3/01/37, MBIA ............... 03/12 @ 100 3,912,200 AAA 20,000 San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/31, MBIA ................................................. No Opt. Call 4,194,800 AAA 6,000 San Jose Fin. Auth., Civic Ctr. Proj., Ser. B, 5.00%, 6/01/37, AMBAC ......... 06/12 @ 100 5,867,520 AAA 11,125 Santa Rosa Wstwtr., Ser. B, Zero Coupon, 9/01/27, AMBAC ...................... No Opt. Call 2,861,795 AAA 6,000 Tustin Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. A, 5.00%, 9/01/38, FSA ................................................ 09/12 @ 100 5,837,700 AAA 5,280 Westlands Wtr. Dist., COP, 5.00%, 9/01/34, MBIA .............................. 09/12 @ 101 5,175,456 ------------ TOTAL LONG-TERM INVESTMENTS (COST $118,809,109) .............................. 112,698,313 ------------ ------ SHARES (000) ------ MONEY MARKET FUND--0.2% NR 100 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $100,000) ........... N/A 100,000 ------------ TOTAL INVESTMENTS--163.7% (COST $118,909,109) ................................ $112,798,313 Other assets in excess of liabilities--3.8% .................................. 2,618,722 Preferred shares at redemption value, including dividends payable--(67.5%) ... (46,507,128) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 68,909,907 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 84.3% of the Trust's total investments. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 24 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ------------------------------------------- BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST - -------------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--160.3% AAA $ 5,000 Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, Zero Coupon, 9/01/32, FSA ............................................................... No Opt. Call $955,650 A 2,500 California, GO, 5.25%, 4/01/30 ............................................... 04/12 @ 100 2,440,725 California Cnty. Tobacco Sec. Agcy., Ser. A, BBB 4,000 Kern Cnty. Fdg., 6.125%, 6/01/43 ........................................... 06/12 @ 100 3,005,520 BBB 3,250 Stanislaus Fdg., 5.875%, 6/01/43 ........................................... 06/12 @ 100 2,361,775 A- 3,500 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.25%, 5/01/20 ....... 05/12 @ 101 3,524,395 A2 4,000 California Edl. Facs. Auth., Univ. of San Diego, Ser. A, 5.25%, 10/01/30 ..... 10/12 @ 100 3,932,320 BBB 3,270 California Hlth. Facs. Fin. Auth., Hlth. Facs. Valleycare, Ser. A, 5.375%, 5/01/27 ............................................................ 05/12 @ 100 3,157,348 AAA 18,855 California Hsg. Fin. Agcy., Home Mtg., Ser. K, Zero Coupon, 2/01/33, MBIA .... 02/12 @ 27.46 3,154,819 California Infrastructure & Econ. Dev., AAA 3,000 5.25%, 6/01/30, MBIA ....................................................... 06/07 @ 101 3,069,120 A 3,750 J. David Gladstone Inst. Proj., 5.25%, 10/01/34 ............................ 10/11 @ 101 3,568,762 AAA 3,500 Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC .................................. 04/12 @ 100 3,517,080 California Statewide Cmnty. Dev. Auth., A 5,000 Kaiser Permanente, Ser. A, 5.50%, 11/01/32 ................................. 11/12 @ 100 4,922,700 A+ 3,250 Sutter Hlth. Oblig. Grp., Ser. B, 5.625%, 8/15/42 .......................... 08/12 @ 100 3,254,225 NR 3,500(3) Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 3,566,675 BBB 3,750 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., 5.75%, 1/15/40 ....... 01/10 @ 101 3,822,675 BBB 3,000 Golden St. Tobacco Sec. Corp., Tobacco Settlement Rev., Ser. A-1, 6.75%, 6/01/39 ............................................................. 06/13 @ 100 2,480,610 Lathrop Fin. Auth., Wtr. Suply. Proj., NR 655 5.90%, 6/01/27 ............................................................. 06/13 @ 100 619,794 NR 1,180 6.00%, 6/01/35 ............................................................. 06/13 @ 100 1,124,221 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., B- 1,000 Ser. B, 7.50%, 12/01/24 .................................................... 12/12 @ 102 812,210 B- 680 Ser. C, 7.50%, 12/01/24 .................................................... 12/12 @ 102 552,303 Mult. Fam. Hsg., NR 2,240 San Lucas Apts., Ser. 5, 5.90%, 11/01/34 ................................... 06/12 @ 100 2,171,703 NR 2,425 Westgate Courtyard Apts., Ser. 3, 5.80%, 11/01/34 .......................... 12/11 @ 100 2,350,431 NR 2,400 Orange Cnty. Cmnty. Facs. Dist., Spl. Tax Rev., Ladera Ranch, Ser. A, 6.00%, 8/15/32 ............................................................. 08/10 @ 101 2,399,904 BBB 3,000 Palm Springs Mobile Home Park, Sahara Mobile Home Park, 5.75%, 5/15/37 ....... 05/12 @ 102 2,982,660 NR 2,500 San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.25%, 8/01/33 .......................................... 08/11 @ 101 2,395,650 AAA 15,000 Santa Ana Unified Sch. Dist., COP, Zero Coupon, 4/01/29, FSA ................. No Opt. Call 3,510,450 AAA 2,500 Santa Clara Valley Wtr. Dist., Wtr. Util. Sys. Rev., Ser. A, 5.125%, 6/01/31, FGIC .............................................................. 06/10 @ 100 2,497,375 A+ 1,500 Torrance Hosp. Rev., Torrance Mem. Med Ctr., Ser. A, 5.50%, 6/01/31 .......... 06/11 @ 101 1,487,655 ------------ TOTAL LONG-TERM INVESTMENTS (COST $75,837,346) ............................... 73,638,755 ------------ ------ SHARES (000) ------ MONEY MARKET FUND--1.3% NR 578 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $578,063) ........... N/A 578,063 ------------ TOTAL INVESTMENTS--161.6% (COST $76,415,409) ................................. $ 74,216,818 Other assets in excess of liabilities--3.7% .................................. 1,701,353 Preferred shares at redemption value, including dividends payable--(65.3)% ... (29,978,104) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 45,940,067 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. This security may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of August 31, 2003, the Trust held 7.8% of its net assets, with a current market value of $3,566,675, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 25 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ------------------------------------------------ BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II - ------------------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--167.0% Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, FSA, AAA $15,000 Zero Coupon, 9/01/34 ....................................................... No Opt. Call $ 2,557,650 AAA 10,000 Zero Coupon, 9/01/36 ....................................................... No Opt. Call 1,521,200 California Cnty. Tobacco Sec. Agcy., BBB 4,500 Gold Country Fdg. Corp., 6.00%, 6/01/38 .................................... 06/12 @ 100 3,442,455 BBB 5,515 Ser. B, 6.00%, 6/01/29 ..................................................... 06/12 @ 100 4,579,380 Baa2 1,600 Stanislaus Fdg., Ser. A, 5.875%, 6/01/43 ................................... 06/12 @ 100 1,162,720 A- 6,000 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/21 ...... 05/12 @ 101 6,070,980 AAA 6,000 California Edl. Facs. Auth., Institute of Tech., Ser. A, 5.00%, 10/01/32 ..... 10/11 @ 100 5,928,720 California Infrastructure & Econ. Dev., Ser. A, AAA 5,000 Bay Area Toll Brdgs., 5.00%, 7/01/36, AMBAC ................................ 07/13 @ 100 4,885,250 A 1,735 Kaiser Hosp. Asst. LLC, 5.55%, 8/01/31 ..................................... 08/11 @ 102 1,731,877 AAA 2,500 Rand Corp., 5.25%, 4/01/42, AMBAC .......................................... 04/12 @ 100 2,512,200 A 3,500 California Mobile Home Park Fin. Auth., Palomar Estates East & West, Ser. A, 5.25%, 3/15/34, ACA ................................................ 03/13 @ 102 3,259,375 California Statewide Cmnty. Dev. Auth., A 5,000 Kaiser Permanente, Ser. A, 5.50%, 11/01/32 ................................. 11/12 @ 100 4,922,700 A- 7,000 Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33 .................................. 04/13 @ 100 6,900,950 A+ 8,000 Sutter Hlth. Oblig Corp., Ser. B, 5.50%, 8/15/34 ........................... 08/12 @ 100 7,979,680 California Statewide Fin. Auth., Tobacco Settlement Rev., BBB 5,000 Ser. A, 6.00%, 5/01/37 ..................................................... 05/12 @ 100 3,832,300 BBB 1,750 Ser. B, 6.00%, 5/01/43 ..................................................... 05/12 @ 100 1,289,645 AAA 6,000 Corona Norco Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. No. 98-1, 5.10%, 9/01/32, AMBAC ............................................ 09/12 @ 100 5,974,440 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., Ser. A, AAA 15,470(3) Zero Coupon, 1/01/26 ....................................................... ETM 4,567,208 AAA 4,890(3) Zero Coupon, 1/01/30 ....................................................... ETM 1,130,617 BBB 4,000 Golden St. Tobacco Sec. Corp., Tobacco Settlement Rev., Ser. A-1, 6.75%, 6/01/39 .................................................................... 06/13 @ 100 3,307,480 AAA 5,000 La Quinta Redev. Agcy. Tax Allocation, Redev. Proj. Area No. 1, 5.125%, 9/01/32, AMBAC ............................................................. 09/12 @ 102 4,995,800 Lathrop Fin. Auth., Wtr. Suply. Proj., NR 1,490 5.90%, 6/01/27 ............................................................. 06/13 @ 100 1,409,913 NR 2,680 6.00%, 6/01/35 ............................................................. 06/13 @ 100 2,553,316 AAA 5,500 Los Angeles Dept. of Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, FGIC .............................................................. 07/11 @ 100 5,460,840 B- 1,785 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 .................................................... 12/12 @ 102 1,449,795 Oxnard Impvt. Bond, Dist. No. 1 Spec. Assmt., 1 Rice Ave., NR 1,925 5.625%, 9/02/27 ............................................................ 03/04 @ 103 1,804,341 NR 1,915 5.70%, 9/02/32 ............................................................. 03/04 @ 103 1,784,416 AAA 5,000 Poway Redev. Agcy. Tax Allocation, Paguay Redev. Proj., 5.125%, 6/15/33, AMBAC ............................................................. 12/11 @ 101 4,995,200 Poway Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. No. 6, NR 1,500 5.50%, 9/01/25 ............................................................. 09/10 @ 102 1,379,310 NR 1,700 5.60%, 9/01/33 ............................................................. 09/10 @ 102 1,596,487 BBB 2,470 Rohnert Park Fin. Auth., Rancho Feliz Mobile Home Park, Ser. A, 5.625%, 9/15/28 ............................................................ 09/13 @ 100 2,366,112 AAA 5,000 Sacramento City Fin. Auth., Cap. Impvt., Ser. A, 5.00%, 12/01/32, AMBAC ...... 06/11 @ 100 4,902,900 NR 6,000 San Bernardino Cnty., Spec. Tax Rev., Cmnty. Facs., 5.90%, 9/01/33 ........... 09/12 @ 102 5,602,080 San Diego Unified Sch. Dist., Ser. D, FGIC, AAA 8,000 5.00%, 7/01/27 ............................................................. 07/12 @ 100 7,901,600 AAA 8,665 5.25%, 7/01/23 ............................................................. 07/12 @ 101 8,876,686 NR 5,000 San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.25%, 8/01/33 .......................................... 08/11 @ 101 4,791,300 AAA 30,000 San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/34, MBIA ................................................. No Opt. Call 5,302,200 NR 8,000 San Jose Mult. Fam. Hsg., Helzer Courts Apts. Proj., Ser. A, 6.40%, 12/01/41 ............................................................ 12/09 @ 102 7,544,160 Santa Clarita Facs. Dist., Valencia Town Ctr., NR 1,640 5.80%, 11/15/25 ............................................................ 11/10 @ 102 1,568,906 NR 1,500 5.85%, 11/15/32 ............................................................ 11/10 @ 102 1,429,410 AAA 2,685 Santa Rosa Wstwtr., Ser. B, Zero Coupon, 9/01/25, AMBAC ...................... No Opt. Call 778,462 BBB- 2,200 So. Tahoe Joint Pwr. Fin. Auth., So. Tahoe Redev. Proj. 1-A, 5.45%, 10/01/33 ............................................................ 10/13 @ 100 2,046,858
See Notes to Financial Statements. 26
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== Tustin Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. 97-1, AAA $5,000 Ser. A, 5.00%, 9/01/38, FSA ................................................ 09/12 @ 100 $ 4,864,750 NR 2,000 Ser. B, 5.60%, 9/01/29 ..................................................... 09/12 @ 101 1,901,640 AAA 2,000 Univ. of California, Ser. A, 5.00%, 5/15/33, AMBAC ........................... 05/13 @ 100 1,960,920 NR 1,170 Val Verde Unified School Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28 ... 10/13 @ 102 1,113,196 A2 2,000 Vernon Elec. Sys., Malburg Generating Station Proj., 5.50%, 4/01/33 .......... 04/08 @ 100 1,948,920 ------------ TOTAL LONG-TERM INVESTMENTS (COST $178,010,739) .............................. 169,886,345 ------------ ------ SHARES (000) ------ MONEY MARKET FUNDS--5.6% NR 5,050 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................... N/A 5,050,000 NR 650 SSgA Tax Free Money Mkt. Fund ................................................ N/A 650,000 ------------ TOTAL MONEY MARKET FUNDS (COST $5,700,000) ................................... 5,700,000 ------------ TOTAL INVESTMENTS--172.6% (COST $183,710,739) ................................ $175,586,345 Liabilities in excess of other assets--(1.9)% ................................ (1,891,766) Preferred shares at redemption value, including dividends payable--(70.7)% ... (71,956,432) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $101,738,147 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This security is collateralized by U.S. Treasury obligations. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporation ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 27 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - -------------------------------------------------- BLACKROCK FLORIDA INSURED MUNICIPAL INCOME TRUST - --------------------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--161.6% FLORIDA--155.3% Capital Trust Agcy. Multi-Fam., American Opp., Baa1 $ 1,000 Ser. A, 5.875%, 12/01/38 ................................................... 06/11 @ 102 $ 912,870 Baa3 1,000 Ser. C, 7.25%, 12/01/38 .................................................... 06/11 @ 102 938,770 NR 4,000 Colonial Cntry. Club Comnty. Dev. Dist., Cap. Impvt. Rev., 6.40%, 5/01/33 .... 05/12 @ 100 3,992,640 Florida Brd. of Ed., AAA 9,000 GO, Ser. A, 5.00%, 6/01/27, FSA ............................................ 06/12 @ 101 8,950,860 AAA 8,640 Lottery Rev., Ser. C, 5.00%, 1/01/22, MBIA ................................. 01/13 @ 101 8,677,066 AAA 7,000 Florida Dept. of Transp., 5.00%, 7/01/27, FSA ................................ 07/12 @ 101 6,961,780 AAA 9,695 Gainesville Util. Sys., Ser. A, 5.00%, 10/01/33, FSA ......................... 10/13 @ 100 9,563,633 A 8,500 Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31 ............................................................ 11/11 @ 101 8,766,050 AAA 7,580 Hillsborough Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/25, MBIA .............. 07/10 @ 100 7,540,053 Jacksonville, AAA 8,000 Excise Tax, Ser. B, 5.00%, 10/01/26, AMBAC ................................. 10/12 @ 100 7,968,000 AAA 9,500 Sales Tax, 5.00%, 10/01/27, MBIA ........................................... 10/13 @ 100 9,448,225 AAA 9,500 Transp., 5.00%, 10/01/31, MBIA ............................................. 10/11 @ 100 9,374,695 AAA 2,865 Jacksonville Cap. Impvt., Ser. A, 5.00%, 10/01/30, AMBAC ..................... 10/12 @ 100 2,836,121 AAA 1,480 Julington Creek Plantation Cmnty. Dev., Assmt. Rev., 5.00%, 5/01/29, MBIA .... 05/12 @ 101 1,467,479 AAA 9,000 Lake Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/28, AMBAC ..................... 07/13 @ 100 8,937,450 AAA 26,935 Miami Dade Cnty., Spec. Oblig. Rev., Ser. B, Zero Coupon, 10/01/31, MBIA ..... 04/08 @ 28.079 5,117,111 AAA 7,975 Orange Cnty., Sales Tax, Ser. B, 5.125%, 1/01/32, FGIC ....................... 01/13 @ 100 7,990,870 AAA 2,000 Orange Cnty. Sch. Brd., COP, Ser. A, 5.00%, 8/01/27, MBIA .................... 08/12 @ 100 1,980,880 AAA 9,250 Orange Cnty. Tourist Dev., Tax Rev., 5.125%, 10/01/30 ........................ 04/12 @ 100 9,247,595 AAA 4,000 Osceola Cnty. Sch. Brd., COP, Ser. A, 5.25%, 6/01/27, AMBAC .................. 06/12 @ 101 4,052,560 Palm Bay Util., FGIC, AAA 4,015 Zero Coupon, 10/01/28 ...................................................... No Opt. Call 997,687 AAA 5,570 Zero Coupon, 10/01/31 ...................................................... No Opt. Call 1,168,141 AAA 9,200 Palm Beach Cnty. Sch. Brd., COP, Ser. D, 5.00%, 8/01/28, FSA ................. 08/12 @ 100 9,097,512 AA- 5,000 Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33 ......... 05/13 @ 100 4,801,950 AAA 9,500 Pinellas Cnty. Swr., 5.00%, 10/01/32, FSA .................................... 10/13 @ 100 9,372,890 AAA 5,000 Polk Cnty. Util. Sys., 5.00%, 10/01/29, FGIC ................................. 10/13 @ 100 4,957,550 AAA 2,325 Port St. Lucie Util., 5.125%, 9/01/31, MBIA .................................. 07/12 @ 100 2,328,883 AAA 2,945 Sarasota Cnty. Util. Sys., Ser. C, 5.25%, 10/01/22, FGIC ..................... 10/12 @ 100 3,024,692 Aa3 2,250 So. Broward Hosp. Dist., 5.60%, 5/01/27 ...................................... 05/12 @ 101 2,287,890 AAA 3,500 St. Petersburg Pub. Util., Ser. A, 5.00%, 10/01/28, FSA ...................... 10/09 @ 101 3,475,675 AAA 2,000 Tampa Bay Wtr. Util. Sys., Ser. A, 5.00%, 10/01/28, FGIC ..................... 10/11 @ 100 1,986,100 Village Cmnty. Dev., Assmt. Rev., NR 5,000 Ser. A, 6.50%, 5/01/33 ..................................................... 05/13 @ 101 4,982,350 NR 1,000 Ser. B, 5.40%, 5/01/07 ..................................................... No Opt. Call 1,000,280 AAA 12,000 Village Cntr. Cmnty. Dev. Dist., Ser. A, 5.00%, 11/01/32, MBIA ............... 11/13 @ 101 11,838,960 ------------ 186,045,268 ------------ PUERTO RICO--6.3% BBB 9,405 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 7,458,917 ------------ TOTAL INVESTMENTS--161.6% (COST $198,273,305) ................................ $193,504,185 Other assets in excess of liabilities--1.9% .................................. 2,283,978 Preferred shares at redemption value, including dividends payable--(63.5)% ... (76,010,006) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $119,778,157 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 81.8% of the Trust's total investments. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 28 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ---------------------------------------- BLACKROCK FLORIDA MUNICIPAL BOND TRUST - ----------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--161.9% FLORIDA--148.8% AAA $ 1,250 Bay Cnty., Sales Tax Rev., 5.125%, 9/01/32, AMBAC ............................ 09/12 @ 100 $ 1,252,450 AAA 1,000 Boynton Beach Multi. Fam., Clipper Cove Apts., 5.30%, 1/01/23, ACA ........... 01/13 @ 100 999,440 Baa1 1,000 Capital Trust Agcy. Multi-Fam., American Opp., Ser. A, 5.875%, 6/01/38 ....... 06/11 @ 102 912,870 NR 3,000(3) Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 3,057,150 NR 1,690 Colonial Cntry. Club Comnty. Dev. Dist., Cap. Impvt. Rev., 6.40%, 5/01/33 .... 05/13 @ 101 1,686,890 AAA 3,150 Florida Mun. Loan Council, Ser. A, 5.125%, 5/01/32, MBIA ..................... 05/12 @ 101 3,156,552 NR 1,180 Gateway Svcs. Cmnty. Dev. Dist., Spec. Assessment, Stoneybrook Proj., 5.50%, 7/01/08 ............................................................. No Opt. Call 1,176,554 AAA 3,100 Greater Orlando Aviation Auth., Orlando Arpt. Facs., Ser. A, 5.125%, 10/01/32, FSA .............................................................. 10/12 @ 100 3,106,045 A 4,900 Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31 ............................................................ 11/11 @ 101 5,053,370 BBB+ 1,810 Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23 ................................................................... 10/12 @ 100 1,724,948 AA 3,500 Jacksonville Econ. Dev. Comm. Hlth. Facs., Mayo Clinic, Ser. B, 5.50%, 11/15/36 ................................................................... 11/11 @ 101 3,561,810 AA 5,000 JEA Elec. Sys., Ser. A, 5.50%, 10/01/41 ...................................... 10/07 @ 100 5,073,650 AAA 5,425 JEA Wtr. & Swr. Sys., Ser. A, 5.375%, 10/01/30, MBIA ......................... 04/07 @ 100 5,538,654 A1 3,000 Lakeland Hosp. Sys., Lakeland Regl. Hlth. Sys., 5.50%, 11/15/32 .............. 11/12 @ 101 2,911,530 Miami Dade Cnty., Spec. Oblig. Rev., MBIA, AAA 5,500 Ser. A, Zero Coupon, 10/01/26 .............................................. 04/08 @ 37.301 1,440,505 AAA 10,000 Ser. B, Zero Coupon, 10/01/30 .............................................. 04/08 @ 29.688 2,026,600 AAA 5,410 Ser. B, Zero Coupon, 10/01/32 .............................................. 04/08 @ 26.494 968,606 A2 5,000 Orange Cnty. Hlth. Facs. Auth., Orlando Regl. Hlth. Care, 5.75%, 12/01/32 .... 12/12 @ 100 5,004,750 AAA 3,350 Orange Cnty. Tourist Dev., Tax Rev., 5.125%, 10/01/30, AMBAC ................. 04/12 @ 100 3,349,129 AAA 3,105 Osceola Cnty. Tourist Dev., Tax Rev., Ser. A, 5.00%, 10/01/32, FGIC .......... 10/12 @ 100 3,063,455 AAA 3,630 Palm Bay Util., Zero Coupon, 10/01/28, FGIC .................................. No Opt. Call 902,019 AAA 3,000 Palm Beach Cnty. Sch. Brd., COP, Ser. C, 5.00%, 8/01/27, FSA ................. 08/12 @ 100 2,971,320 AAA 3,000 Port St. Lucie Util., 5.125%, 9/01/31, MBIA .................................. 09/11 @ 100 3,005,010 Aa3 2,000 So. Broward Hosp. Dist., 5.60%, 5/01/27 ...................................... 05/12 @ 101 2,033,680 NR 2,850 Sumter Cnty. Indl. Dev. Auth., No. Sumter Util. Co. LLC, 6.80%, 10/01/32 ..... 10/09 @ 100 2,828,369 NR 1,900 Village Cmnty. Dev., Assmt. Rev., Ser. A, 6.50%, 5/01/33 ..................... 05/13 @ 101 1,893,293 Volusia Cnty Edl. Fac. Auth., Embry Riddle Aeronautical, RAA, AA 1,250 5.20%, 10/15/26 ............................................................ 10/13 @ 100 1,228,550 AA 1,610 5.20%, 10/15/33 ............................................................ 10/13 @ 100 1,576,673 ------------ 71,503,872 ------------ PUERTO RICO--13.1% BBB 3,500 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 2,775,780 A- 3,500 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D, 5.25%, 7/01/36 .......... 07/12 @ 100 3,497,795 ------------ 6,273,575 ------------ TOTAL INVESTMENTS--161.9% (COST $77,458,533) ................................. $ 77,777,447 Other assets in excess of liabilities--0.1% .................................. 42,203 Preferred shares at redemption value, including dividends payable--(62.0)% ... (29,777,613) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 48,042,037 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. This security may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of August 31, 2003, the Trust held 6.4% of its net assets, with a current market value of $3,057,150, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue RAA -- Radian Asset Assurance - -------------------------------------------------------------------------------- See Notes to Financial Statements. 29 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ----------------------------------------- BLACKROCK MARYLAND MUNICIPAL BOND TRUST - -----------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--158.2% MARYLAND--132.4% A3 $2,870 Anne Arundel Cnty. Econ. Dev., Cmnty. Coll. Proj., 5.25%, 9/01/28 ............ 09/12 @ 102 $ 2,838,803 NR 1,000 Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31 ........... 07/13 @ 101 974,760 Baltimore Cnty., GO, AAA 2,000 Met. 67th Dist., 5.00%, 6/01/22 ............................................ 06/11 @ 101 2,029,740 AAA 2,000 Met. 68th Dist., 5.00%, 8/01/28 ............................................ 08/12 @ 100 2,000,260 Baltimore Wstwtr. Proj., Ser. A, FGIC, AAA 2,000 5.125%, 7/01/42 ............................................................ 07/12 @ 100 1,985,660 AAA 3,500 5.20%, 7/01/32 ............................................................. 07/12 @ 100 3,529,890 NR 2,0003 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 2,038,100 Aa2 1,730 Maryland Dept. Hsg. & Cmnty. Dev. Admin., Sngl. Fam. Prog., Ser. 2, 6.55%, 4/01/26 ............................................................. 04/05 @ 102 1,780,239 Baa3 1,500 Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33 ............................................................ 10/13 @ 100 1,478,805 Maryland Hlth. & Higher Edl. Facs. Auth., A 2,000 Brd. of Child Care, 5.375%, 7/01/32 ........................................ 07/12 @ 100 1,990,080 BBB+ 1,990 Carroll Cnty. Gen. Hosp., 6.00%, 7/01/37 ................................... 07/12 @ 100 2,028,566 AA 2,000 Johns Hopkins Univ., Ser. B, 5.00%, 7/01/41 ................................ 07/11 @ 100 1,963,980 A 2,000 Loyola Coll. Issue, 5.00%, 10/01/39 ........................................ 10/09 @ 101 1,948,480 A3 2,000 Union Hosp. of Cecil Cnty., 5.625%, 7/01/32 ................................ 07/12 @ 100 2,003,800 A 2,000 Univ. of Maryland Med. Sys., 5.25%, 7/01/34 ................................ 07/11 @ 100 1,906,720 A+ 1,905 Maryland Ind. Dev. Fin. Auth., Econ. Dev. Rev., Nat'l. Aquarium Baltimore Fac., Ser. B, 5.20%, 11/01/26 .............................................. 11/12 @ 100 1,879,740 AAA 2,000 Maryland Transp. Auth., Arpt. Pkg. Rev., Baltimore/Wash Intl. Arpt., Ser. B, 5.125%, 3/01/24, AMBAC ............................................. 03/12 @ 101 1,983,700 Montgomery Cnty. Lease, Metrorail Garage Proj., AA 500 5.00%, 6/01/23 ............................................................. 06/12 @ 100 503,565 AA 1,435 5.00%, 6/01/24 ............................................................. 06/12 @ 100 1,441,170 St. Mary's Coll., Academic & Auxil. Fees, Ser. A, AMBAC, AAA 1,000 5.00%, 9/01/27 ............................................................. 09/12 @ 101 999,520 AAA 1,000 5.00%, 9/01/32 ............................................................. 09/12 @ 101 994,190 ------------ 38,299,768 ------------ PUERTO RICO--25.8% BBB 2,000 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 1,586,160 A 2,000 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38 ........... 07/12 @ 100 1,998,740 AAA 2,060 Puerto Rico Elec. Pwr. Auth., Ser. HH, 5.25%, 7/01/29, FSA ................... 07/10 @ 101 2,111,747 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D, A- 250 5.25%, 7/01/36 ............................................................. 07/12 @ 100 249,843 A- 1,500 5.375%, 7/01/33 ............................................................ 07/12 @ 100 1,522,770 ------------ 7,469,260 ------------ TOTAL LONG-TERM INVESTMENTS (COST $45,648,839) ............................... 45,769,028 ------------ ------ SHARES (000) ------ MONEY MARKET FUND--1.5% NR 419 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $418,948) ........... N/A 418,948 ------------ TOTAL INVESTMENTS--159.7% (COST $46,067,787) ................................. $ 46,187,976 Other assets in excess of liabilities--2.5% .................................. 735,862 Preferred shares at redemption value, including dividends payable--(62.2)% ... (18,001,185) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 28,922,653 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. This security may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of August 31, 2003, the Trust held 7.0% of its net assets, with a current market value of $2,038,100, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation - -------------------------------------------------------------------------------- See Notes to Financial Statements. 30 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ------------------------------------------- BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST - -------------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--160.6% NEW JERSEY--130.3% NR $ 2,0003 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call $ 2,038,100 AAA 10,000 Garden St. Pres. Trust, Open Space & Farmland Pres., Ser. B, Zero Coupon, 11/01/27, FSA .............................................................. No Opt. Call 2,645,900 New Jersey Econ. Dev. Auth., B 2,335 Continental Airlines Inc. Proj., 7.00%, 11/15/30 ........................... 11/10 @ 101 1,981,108 BBB- 2,000 Fellowship Village, Ser. A, 5.50%, 1/01/25 ................................. 01/08 @ 102 1,891,500 Baa3 4,750 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 .............................. No Opt. Call 5,250,460 Aaa 1,780 Victoria Hlth., Ser. A, 5.20%, 12/20/36 .................................... 12/11 @ 103 1,790,555 New Jersey Edl. Facs. Auth., BBB- 1,000 Fairleigh Dickinson Univ., Ser. D, 6.00%, 7/01/25 .......................... 07/13 @ 100 993,830 BBB+ 630 Georgian Court Coll. Proj. C, 6.50%, 7/01/33 ............................... 07/13 @100 669,589 New Jersey Hlth. Care Fac. Fin. Auth., A- 2,000 Atlantic City Med. Ctr., 5.75%, 7/01/25 .................................... 07/12 @ 100 2,035,020 A+ 2,000 Catholic Hlth. East, Ser. A, 5.375%, 11/15/33 .............................. 11/12 @ 100 1,964,000 A3 2,000 Kennedy Hlth. Sys., 5.625%, 7/01/31 ........................................ 07/11 @ 100 1,996,700 Baa1 2,500 So. Jersey Hosp., 6.00%, 7/01/32 ........................................... 07/12 @ 100 2,483,300 AAA 2,250 New Jersey Hsg. & Mtg. Fin. Agcy., Mult. Fam. Hsg. Rev., Ser. A, 5.65%, 5/01/40, AMBAC ...................................................... 11/07 @ 101.5 2,311,537 Port Auth. of NY & NJ, AAA 1,500 Ser. 125, 5.00%, 4/15/32, FSA .............................................. 04/12 @ 101 1,500,495 AAA 2,250 Ser. 126, 5.25%, 5/15/37, FGIC ............................................. 05/12 @ 101 2,236,433 Caa2 130 Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 4.125%, 12/01/15 ............. 09/03 @ 100 128,840 BBB 7,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 ............................... 06/12 @ 100 5,234,390 AAA 1,000 Univ. of Med. & Dentistry, Ser. A, 5.00%, 12/01/31, AMBAC .................... 12/12 @ 100 992,680 Vineland, GO, MBIA, AAA 1,000 5.30%, 5/15/29 ............................................................. 05/10 @ 101 1,008,740 AAA 1,500 5.375%, 5/15/32 ............................................................ 05/10 @ 101 1,527,825 ------------ 40,681,002 ------------ PUERTO RICO--30.3% A 4,900 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38 ........... 07/12 @ 100 4,896,913 A- 2,250 Puerto Rico Elec. Pwr. Auth., Ser. II, 5.25%, 7/01/34 ........................ 07/12 @ 101 2,257,313 A- 2,300 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D, 5.25%, 7/01/27 .......... 07/12 @ 100 2,311,477 ------------ 9,465,703 ------------ TOTAL LONG-TERM INVESTMENTS (COST $51,410,087) ............................... 50,146,705 ------------ ------ SHARES (000) ------ MONEY MARKET FUND--2.7% NR 841 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $841,034) ........... N/A 841,034 ------------ TOTAL INVESTMENTS--163.3% (COST $52,251,121) ................................. $ 50,987,739 Other assets in excess of liabilities--1.5% .................................. 465,943 Preferred shares at redemption value, including dividends payable--(64.8)% ... (20,227,559) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................ $ 31,226,123 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. This security may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of August 31, 2003, the Trust held 6.5% of its net assets, with a current market value of $2,038,100, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 31 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - --------------------------------------------------- BLACKROCK NEW YORK INSURED MUNICIPAL INCOME TRUST - ---------------------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--162.4% NEW YORK--139.8% BBB- $ 1,000 Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg., 6.25%, 8/01/34 ............................................... 08/13 @ 100 $ 1,024,170 Met. Transp. Auth., AAA 1,085 Ser. A, 5.00%, 11/15/25, FGIC .............................................. 11/12 @ 100 1,079,238 AAA 8,470 Ser. A, 5.00%, 11/15/30, FSA ............................................... 11/12 @ 100 8,371,833 AAA 5,000 Ser. A, 5.25%, 11/15/31, FGIC .............................................. 11/12 @ 100 5,073,550 AAA 2,910 Ser. E, 5.25%, 11/15/31, FGIC .............................................. 11/12 @ 100 2,952,806 AAA 5,000 Dedicated Tax Fund, Ser. A, 5.00%, 11/15/28, FSA ........................... 11/12 @ 100 4,950,900 AAA 5,000 Dedicated Tax Fund, Ser. A, 5.00%, 11/15/31, FGIC .......................... 11/11 @ 100 4,933,750 AAA 10,000 Svc. Contract Rev., Ser. A, 5.00%, 7/01/30, AMBAC .......................... 07/12 @ 100 9,884,800 A 2,500 New York City Indl. Dev. Agcy., Lycee Francais De Proj., Ser. A, 5.375%, 6/01/23, ACA ............................................................... 12/12 @ 100 2,483,125 AAA 4,500 New York City Mun. Wtr. Fin. Auth., Ser. A, 5.125%, 6/15/34, FSA ............. 06/12 @ 100 4,508,235 AAA 7,000 New York City Transl. Fin. Auth., Wtr. & Swr. Sys., Ser. B, 5.00%, 5/01/30, AMBAC ............................................................. 11/11 @ 101 6,919,570 New York Dorm. Auth., AAA 5,000 Brooklyn Law School, Ser. B, 5.125%, 7/01/30, XLCA ......................... 07/13 @ 100 4,995,300 AAA 7,000 Hosp. Lutheran Med., 5.00%, 8/01/31, MBIA .................................. 02/13 @ 100 6,907,880 AAA 3,160 Iona Coll., 5.00%, 7/01/27, XLCA ........................................... 07/12 @ 100 3,134,088 Aa3 3,000 Joachim & Ann Residence, 5.25%, 7/01/27 .................................... 07/12 @ 100 2,908,860 AAA 10,000 Memorial Sloan Kettering Ctr., Ser. 1, Zero Coupon, 7/01/30, MBIA .......... No Opt. Call 2,290,200 AAA 5,000 New York & Presbyterian Hosp., 5.00%, 8/01/32, AMBAC ....................... 02/08 @ 101 4,933,250 AAA 7,000 New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC .............................. 07/11 @ 100 6,839,490 AAA 2,000 Sch. Dist. Fin., Ser. A, 5.00%, 4/01/31, MBIA .............................. 10/12 @ 100 1,973,820 AAA 3,500 Sch. Dist. Fin., Ser. D, 5.00%, 10/01/30, MBIA ............................. 10/12 @ 100 3,459,610 AAA 7,000 St. Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC ................................ 08/12 @ 100 6,908,580 AAA 5,000 Univ. Dorm. Facs., 5.00%, 7/01/32, MBIA .................................... 07/12 @ 100 4,933,200 AAA 2,000 Winthrop Univ. Hosp. Assoc., Ser. A, 5.25%, 7/01/31, AMBAC ................. 07/11 @ 101 2,028,400 AAA 2,500 New York Urban Dev. Corp., Ser. C-1, 5.00%, 3/15/33, FGIC .................... 03/13 @ 100 2,466,400 AAA 10,000 Triborough Brdg. & Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA ................ 11/12 @ 100 9,865,700 A3 6,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 .................. 07/12 @ 100 5,031,180 ------------ 120,857,935 ------------ PUERTO RICO--22.6% BBB 11,000 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 8,723,880 A 5,000 Puerto Rico Indl. Fin. Auth., Med. & Env. Ctrl. Facs., Polytecnic Univ., Ser. A, 5.00%, 8/01/32, ACA ................................................ 08/12 @ 100 4,765,750 AAA 6,000 Puerto Rico Mun. Fin. Agcy., Ser. A, 5.00%, 8/01/27, FSA ..................... 08/12 @ 100 6,026,520 ------------ 19,516,150 ------------ TOTAL LONG-TERM INVESTMENTS (COST $145,098,029) .............................. 140,374,085 ------------ ------ SHARES (000) ------ MONEY MARKET FUND--0.5% NR 400 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $400,000) ........... N/A 400,000 ------------ TOTAL INVESTMENTS--162.9% (COST $145,498,029) ................................ $140,774,085 Other assets in excess of liabilities--1.9% .................................. 1,660,616 Preferred shares at redemption value, including dividends payable--(64.8)% ... (56,003,686) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 86,431,015 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 89.2% of the Trust's total investments. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance MBIA -- Municipal Bond Insurance Association XLCA -- XL Capital Assurance - -------------------------------------------------------------------------------- See Notes to Financial Statements. 32 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ----------------------------------------- BLACKROCK NEW YORK MUNICIPAL BOND TRUST - -----------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--160.0% NEW YORK--121.3% NR $2,5003 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call $ 2,547,625 AA 2,000 Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40 ............................................................. 08/11 @ 101 2,031,400 A 3,000 Met. Transp. Auth., Dedicated Tax Fund, Ser. A, 5.125%, 11/15/31 ............. 11/12 @ 100 2,936,820 A+ 3,000 New York City, GO, Ser. D, 5.375%, 6/01/32 ................................... 06/12 @ 100 3,011,580 A3 1,100 New York City Hlth. & Hosp. Corp., Hlth. Sys., Ser. A, 5.375%, 2/15/26 ....... 02/12 @ 100 1,092,245 AA 2,500 New York City Hsg. Dev. Corp., Mult. Fam. Hsg. Rev., Ser. A, 5.50%, 11/01/34 ............................................................ 05/12 @ 100 2,513,475 AAA 2,500 New York City Mun. Wtr. Fin. Auth., Ser. A, 5.25%, 6/15/33, FGIC ............. 06/11 @ 100 2,531,725 New York Dorm. Auth., AA- 2,750 City Univ., Ser. A, 5.25%, 7/01/31 ......................................... 07/11 @ 100 3,047,907 AAA 2,500 Iona Coll., 5.125%, 7/01/32, XLCA .......................................... 07/12 @ 100 2,504,625 A- 3,000 Lenox Hill Hosp. Oblig. Grp., 5.50%, 7/01/30 ............................... 07/11 @ 101 3,023,580 AAA 2,500 Willow Towers Inc. Proj., 5.40%, 2/01/34 ................................... 08/12 @ 101 2,547,350 AAA 2,750 New York Env. Facs. Corp., Mun. Wtr. Proj., Ser. D, 5.125%, 6/15/31 .......... 06/12 @ 100 2,755,033 Aa1 3,000 New York Mtg. Agcy., Ser. 101, 5.40%, 4/01/32 ................................ 10/11 @ 100 3,009,600 AA 5,000 New York Urban Dev. Corp., Ser. A, 5.25%, 3/15/32 ............................ 03/12 @ 100 4,986,300 Port Auth. of NY & NJ, AAA 2,750 Ser. 126, 5.25%, 5/15/37, FGIC ............................................. 05/12 @ 101 2,733,418 Caa2 2,600 Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 9.125%, 12/01/15 ............. 09/03 @ 100 2,576,808 A3 3,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 .................. 07/12 @ 100 2,515,590 ------------ 46,365,081 ------------ PUERTO RICO--38.7% BBB 5,150 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 4,084,362 A- 3,000 Puerto Rico, GO, Ser. A, 5.125%, 7/01/31 ..................................... 07/11 @ 100 2,967,480 A 3,000 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38 ........... 07/12 @ 100 2,998,110 A- 2,000 Puerto Rico Elec. Pwr. Auth., Ser. II, 5.25%, 7/01/31 ........................ 07/12 @ 101 2,006,500 A- 2,700 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D, 5.25%, 7/01/27 .......... 07/12 @ 100 2,713,473 ------------ 14,769,925 ------------ TOTAL LONG-TERM INVESTMENTS (COST $61,327,033) ............................... 61,135,006 ------------ ------ SHARES (000) ------ MONEY MARKET FUND--1.8% NR 682 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $682,409) ........... N/A 682,409 ------------ TOTAL INVESTMENTS--161.8% (COST $62,009,442) ................................. $ 61,817,415 Other assets in excess of liabilities--1.5% .................................. 592,377 Preferred shares at redemption value, including dividends payable--(63.3)% ... (24,202,552) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 38,207,240 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. This security may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of August 31, 2003, the Trust held 6.7% of its net assets, with a current market value of $2,547,625, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS FGIC -- Financial Guaranty Insurance Company GO -- General Obligation XLCA -- XL Capital Assurance - -------------------------------------------------------------------------------- See Notes to Financial Statements. 33 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ---------------------------------------------- BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II - ----------------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--164.8% NEW YORK--149.9% Aaa $1,750 Clarence Indl. Dev. Agcy., Civic Fac. Rev., Bristol Village Proj., 6.00%, 1/20/44 .............................................................. 01/13 @ 102 $ 1,866,655 AA 6,000 Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40 .............................................................. 08/11 @ 101 6,094,200 BBB 625 Essex Cnty. Indl. Dev. Agcy., Solid Wst. Disp. Rev., Intl. Paper Co. Proj., Ser. A, 5.50%, 10/01/26 ..................................................... 10/12 @ 100 582,431 A 3,250 Geneva Indl. Dev. Agcy., Civic Fac. Rev., Hobart & William Smith Proj., Ser. A, 5.375%, 2/01/33 ..................................................... 02/13 @ 100 3,297,353 BBB- 385 Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc., Student Hsg., 6.25%, 8/01/34 ................................................ 08/13 @ 100 394,305 AAA 3,515 Long Island Pwr. Auth., Elec. Sys. Rev., Ser. A, Zero Coupon, 6/01/28, FSA .... No Opt. Call 920,438 Met. Transp. Auth., Ser. A, AAA 2,000 5.25%, 11/15/31, FGIC ....................................................... 11/12 @ 100 2,029,420 AA- 5,000 Dedicated Tax Fund, 5.00%, 11/15/30 ......................................... 11/12 @ 100 4,848,650 AA- 5,000 Svc. Contract Rev., 5.125%, 1/01/29 ......................................... 07/12 @ 100 4,906,350 A 5,000 New York City, GO, Ser. B, 5.75%, 12/01/22 .................................... 12/11 @ 100 5,220,050 New York City Indl. Dev. Agcy., Ser. A, AAA 1,000 Eger Harbor Proj., 4.95%, 11/20/32 .......................................... 11/12 @ 101 951,420 AAA 1,000 Eger Harbor Proj., 5.875%, 5/20/44 .......................................... 11/12 @ 105 1,058,420 A 1,500 Lycee Francais De Proj., 5.375%, 6/01/23, ACA ............................... 12/12 @ 100 1,489,875 AA 5,000 New York City Mun. Wtr. Fin. Auth., Ser. A, 5.125%, 6/15/34 ................... 06/12 @ 100 4,966,500 AAA 5,000 New York City Trans. Auth., Met. Transp. Auth., Triborough Brdg. & Tunl. Auth., COP, Ser. A, 5.25%, 1/01/29, AMBAC ................................... 01/10 @ 101 5,063,150 AA+ 5,000 New York City Trans. Fin. Auth., Ser. B, 5.00%, 11/01/27 ...................... 11/12 @ 100 4,903,950 New York Dorm. Auth., AAA 2,500 Brooklyn Law School, Ser. B, 5.125%, 7/01/30, XLCA .......................... 07/13 @ 100 2,497,650 Aa3 2,000 Kateri Residence, 5.00%, 7/01/22 ............................................ 07/13 @ 100 1,949,540 AA 5,000 Memorial Sloan Kettering Ctr., Ser. 1, 5.00%, 7/01/34 ....................... 07/13 @ 100 4,879,450 AA 2,000 Mount St. Mary Coll., 5.00%, 7/01/32, RAA ................................... 07/13 @ 100 1,929,260 AAA 2,425 New York Univ., 5.00%, 7/01/31, MBIA ........................................ 07/11 @ 100 2,393,063 AAA 3,000 New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC ............................... 07/11 @ 100 2,931,210 AAA 2,500 St. Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC ................................. 08/12 @ 100 2,467,350 AA- 5,000 Univ. Dorm. Facs., 5.00%, 7/01/32 ........................................... 07/12 @ 100 4,837,600 A+ 5,500 New York Energy Res. & Dev. Auth., Facs. Rev., 4.70%, 6/01/36 ................. 10/05 @ 100 5,509,515 AA 2,500 New York Hsg. Fin. Agcy., Inc. Tax Rev., Econ. Dev. & Hsg., Ser. A, 5.00%, 3/15/33 .............................................................. 03/13 @ 100 2,399,925 AA 5,000 New York Urban Dev. Corp., Ser. C-1, 5.00%, 3/15/33 ........................... 03/13 @ 100 4,836,250 Caa2 3,675 Port Auth. of NY & NJ, Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 9.125%, 12/01/15 ............................................................ 09/03 @ 100 3,642,219 AA 2,500 Triborough Brdg. & Tunl. Auth., Ser. A, 5.00%, 1/01/32 ........................ 01/12 @ 100 2,437,475 A3 9,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 ................... 07/12 @ 100 7,546,770 ------------ 98,850,444 ------------ PUERTO RICO--14.9% BBB 4,000 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 .................... 05/12 @ 100 3,172,320 A- 3,750 Puerto Rico Comnwlth., GO, Ser. A, 5.125%, 7/01/31 ............................ 07/11 @ 100 3,709,350 Puerto Rico Comnwlth. Hwy. & Transp. Auth., A 2,000 Ser. D, 5.375%, 7/01/36 ..................................................... 07/12 @ 100 2,023,280 A 1,000 Ser. G, 5.00%, 7/01/42 ...................................................... 07/13 @ 100 951,080 ------------ 9,856,030 ------------ TOTAL LONG-TERM INVESTMENTS (COST $111,848,468) ............................... 108,706,474 ------------
See Notes to Financial Statements. 34
SHARES (000) DESCRIPTION VALUE ==================================================================================================================================== MONEY MARKET FUND--0.7% 450 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $450,000) ....................... $ 450,000 ------------ TOTAL INVESTMENTS--165.5% (COST $112,298,468) ............................................ 109,156,474 Other assets in excess of liabilities--2.2% .............................................. 1,450,151 Preferred shares at redemption value, including dividends payable--(67.7)% ............... (44,653,919) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ....................................... $ 65,952,706 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association RAA -- Radian Asset Assurance XLCA -- XL Capital Assurance - -------------------------------------------------------------------------------- See Notes to Financial Statements. 35 PORTFOLIO OF INVESTMENTS AUGUST 31, 2003 - ----------------------------------------- BLACKROCK VIRGINIA MUNICIPAL BOND TRUST - -----------------------------------------
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE ==================================================================================================================================== LONG-TERM INVESTMENTS--158.7% VIRGINIA--146.8% NR $1,500 Alexandria Redev. & Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34 ............................................................ 04/08 @ 103 $ 1,407,330 AAA 1,500 Arlington Cnty., GO, 5.00%, 2/01/21 .......................................... 02/11 @ 100 1,525,005 A 3,000 Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr. Arlington Hlth. Sys., 5.25%, 7/01/31 ....................................... 07/11 @ 101 2,915,220 NR 1,5003 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 1,528,575 AAA 1,500 Danville Ind. Dev. Auth., Hosp. Rev., Danville Regl. Med. Ctr, 5.25%, 10/01/28, AMBAC ............................................................ No Opt. Call 1,555,695 NR 1,000 Dulles Town Ctr. Cmnty. Dev. Auth., Spl. Assmt. Tax, Dulles Town Ctr. Proj., 6.25%, 3/01/26 ...................................................... 03/08 @ 102 999,070 AAA 1,500 Fairfax Cnty. Wtr. Auth., Wtr. Rev, 5.00%, 4/01/27 ........................... 04/12 @ 100 1,496,010 AA 1,000 Hampton, GO, 5.00%, 4/01/20 .................................................. 04/12 @ 101 1,022,650 A- 1,500 Henrico Cnty. Econ. Dev. Auth., Bon Secours Hlth. Sys. Inc., Ser. A, 5.60%, 11/15/30 ............................................................ 11/12 @ 100 1,501,455 AAA 1,500 Met. Arpts. Auth., Arpt. Sys. Rev., Ser. A, 5.25%, 10/01/32, FGIC ............ 10/12 @ 100 1,486,995 AAA 1,500 Norfolk Arpt. Auth., Ser. A, 5.125%, 7/01/31, FGIC ........................... 07/11 @ 100 1,499,445 NR 500 Peninsula Port Auth., Residential Care Fac. Rev., Virginia Baptist Homes, Ser. A, 7.375%, 12/01/32 ................................................... 12/13 @ 100 507,830 A 5,000 Pocahontas Pkwy. Assoc., Toll Road Rev., Ser. B, Zero Coupon, 8/15/22, ACA ... 08/08 @ 45.5 1,324,400 AA 1,375 Prince William Cnty., COP, 5.00%, 12/01/21 ................................... 06/12 @ 100 1,388,709 AAA 1,250 Richmond Met. Auth., Expwy. Rev., 5.25%, 7/15/22, FGIC ....................... No Opt. Call 1,322,450 AAA 3,000 Richmond Pub. Util., 5.00%, 1/15/33, FSA ..................................... 01/12 @ 100 2,973,240 Virginia Coll. Bldg. Auth., Edl. Facs. Rev., Washington & Lee Univ. Proj., MBIA, AAA 500 5.25%, 1/01/26 ............................................................. No Opt. Call 526,430 AAA 1,000 5.25%, 1/01/31 ............................................................. No Opt. Call 1,046,430 AAA 3,000 Virginia Hsg. Dev. Auth., Comnwlth. Mtg. Rev., Ser. H, 5.375%, 7/01/36, MBIA . 07/11 @ 100 3,023,580 Virginia Res. Auth., AA 1,000 Infrastructure Rev., Ser. A, 5.00%, 5/01/22 ................................ 05/11 @ 101 1,008,480 AA 635 Infrastructure Rev., Ser. A, 5.125%, 5/01/27 ............................... 05/11 @ 101 639,242 AA 1,500 Wtr. & Swr. Sys. Rev., Frederick Cnty. Sanitation Auth. Proj., 5.20%, 10/01/28 .......................................................... 10/10 @ 100 1,517,535 ------------ 32,215,776 ------------ PUERTO RICO--11.9% BBB 1,500 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 1,189,620 A 1,500 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. G, 5.00%, 7/01/42 ........... 07/13 @ 100 1,426,620 ------------ 2,616,240 ------------ TOTAL LONG-TERM INVESTMENTS (COST $34,717,175) ............................... 34,832,016 ------------ ------ SHARES (000) ------ MONEY MARKET FUND--1.4% NR 299 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $299,448) ........... N/A 299,448 ------------ TOTAL INVESTMENTS--160.1% (COST $35,016,623) ................................. $ 35,131,464 Other assets in excess of liabilities--1.5% .................................. 337,846 Preferred shares at redemption value, including dividends payable--(61.6)% ... (13,525,445) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 21,943,865 ============
- ---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. This security may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of August 31, 2003, the Trust held 7.0% of its net assets, with a current market value of $1,528,575, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 36 STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2003 - --------------------------------------------------------------------------------
CALIFORNIA INSURED INSURED MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL ASSETS INCOME TRUST BOND TRUST INCOME TRUST II INCOME TRUST -------------- -------------- --------------- ------------- Investments at value(1) ............................. $561,751,599 $227,301,377 $506,839,038 $112,798,313 Cash ................................................ 540,419 526,715 49,372 539,778 Receivable from investments sold .................... 19,868,481 3,402,511 1,790,159 993,672 Interest receivable ................................. 5,522,180 3,411,309 6,812,409 1,554,158 Other assets ........................................ 76,019 33,204 47,734 18,872 ------------ ------------ ------------ ------------ 587,758,698 234,675,116 515,538,712 115,904,793 ------------ ------------ ------------ ------------ LIABILITIES Payable to custodian ................................ -- -- -- -- Payable for investments purchased ................... -- -- 5,442,585 -- Dividends payable-- common shares ................... 2,041,051 874,379 1,907,272 394,802 Investment advisory fee payable ..................... 173,216 69,421 172,533 34,302 Deferred Trustees fees .............................. 10,522 6,871 12,182 1,599 Other accrued expenses .............................. 95,222 265,487 97,230 57,055 ------------ ------------ ------------ ------------ 2,320,011 1,216,158 7,631,802 487,758 ------------ ------------ ------------ ------------ PREFERRED SHARES AT REDEMPTION VALUE $.001 par value per share and $25,000 liquidation value per share, including dividends payable(2) ... 229,001,028 90,508,091 205,570,284 46,507,128 ------------ ------------ ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS ............................... $356,437,659 $142,950,867 $302,336,626 $ 68,909,907 ============ ============ ============ ============ Composition of Net Assets Applicable to Common Shareholders: Par value ......................................... $ 26,125 $ 10,123 $ 22,774 $ 5,264 Paid-in capital in excess of par .................. 370,777,495 143,443,136 323,214,104 74,633,026 Undistributed (distributions in excess of) net investment income ............................... 1,592,764 1,899,905 1,629,878 308,708 Accumulated net realized gain (loss) .............. (4,189,228) (1,034,334) (7,486,478) 73,705 Net unrealized appreciation (depreciation) ........ (11,769,497) (1,367,963) (15,043,652) (6,110,796) ------------ ------------ ------------ ------------ Net assets applicable to common shareholders, August 31, 2003 ................................. $356,437,659 $142,950,867 $302,336,626 $ 68,909,907 ============ ============ ============ ============ Net asset value per common share(3) ................. $13.64 $14.12 $13.28 $13.09 ====== ====== ====== ====== (1)Investments at cost .............................. $573,521,096 $228,669,340 $521,882,690 $118,909,109 (2)Preferred shares outstanding ..................... 9,159 3,620 8,222 1,860 (3)Common shares outstanding ........................ 26,125,458 10,123,055 22,773,392 5,264,025
See Notes to Financial Statements. 37 - --------------------------------------------------------------------------------
FLORIDA CALIFORNIA CALIFORNIA INSURED FLORIDA MARYLAND NEW JERSEY MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND TRUST INCOME TRUST II INCOME TRUST BOND TRUST BOND TRUST BOND TRUST ----------- --------------- ------------ ----------- ----------- ----------- $74,216,818 $175,586,345 $193,504,185 $77,777,447 $46,187,976 $50,987,739 -- 535,035 -- -- -- -- 993,672 36,050 -- -- 265,000 -- 1,048,308 2,620,837 3,153,912 1,281,888 656,690 696,250 14,765 16,190 28,328 9,260 5,956 6,752 ----------- ------------ ------------ ----------- ----------- ----------- 76,273,563 178,794,457 196,686,425 79,068,595 47,115,622 51,690,741 ----------- ------------ ------------ ----------- ----------- ----------- -- -- 124,239 910,461 -- -- -- 4,326,606 -- -- -- -- 266,939 647,921 653,912 257,504 143,708 178,186 22,520 58,994 58,183 23,144 13,919 15,299 3,171 3,116 3,674 2,583 2,925 3,415 62,762 63,241 58,254 55,253 31,232 40,159 ----------- ------------ ------------ ----------- ----------- ----------- 355,392 5,099,878 898,262 1,248,945 191,784 237,059 ----------- ------------ ------------ ----------- ----------- ----------- 29,978,104 71,956,432 76,010,006 29,777,613 18,001,185 20,227,559 ----------- ------------ ------------ ----------- ----------- ----------- $45,940,067 $101,738,147 $119,778,157 $48,042,037 $28,922,653 $31,226,123 =========== ============ ============ =========== =========== =========== $ 3,351 $ 7,974 $ 8,719 $ 3,310 $ 2,014 $ 2,267 47,456,833 113,125,098 123,687,058 46,855,682 28,481,327 32,074,540 558,336 (182,190) 219,079 458,990 311,348 291,378 120,138 (3,088,341) 632,421 405,141 7,775 121,320 (2,198,591) (8,124,394) (4,769,120) 318,914 120,189 (1,263,382) ----------- ------------ ------------ ----------- ----------- ----------- $45,940,067 $101,738,147 $119,778,157 $48,042,037 $28,922,653 $31,226,123 =========== ============ ============ =========== =========== =========== $13.71 $12.76 $13.74 $14.52 $14.36 $13.77 ====== ====== ====== ====== ====== ====== $76,415,409 $183,710,739 $198,273,305 $77,458,533 $46,067,787 $52,251,121 1,199 2,878 3,040 1,191 720 809 3,351,150 7,974,413 8,718,823 3,309,483 2,014,121 2,267,518
38 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) AUGUST 31, 2003 - --------------------------------------------------------------------------------
NEW YORK INSURED NEW YORK NEW YORK VIRGINIA MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL ASSETS INCOME TRUST BOND TRUST INCOME TRUST II BOND TRUST ------------- ----------- --------------- ----------- Investments at value(1) ............................. $ 140,774,085 $61,817,415 $ 109,156,474 $35,131,464 Cash ................................................ 525,735 -- 530,628 -- Interest receivable ................................. 1,692,446 850,294 1,402,896 468,342 Other assets ........................................ 21,397 13,430 9,966 4,959 ------------- ----------- ------------- ----------- 143,013,663 62,681,139 111,099,964 35,604,765 ------------- ----------- ------------- ----------- LIABILITIES Dividends payable -- common shares .................. 481,808 208,244 388,652 109,876 Investment advisory fee payable ..................... 42,307 18,579 37,532 10,530 Deferred Trustees fees .............................. 1,680 2,770 2,249 2,645 Other accrued expenses .............................. 53,167 41,754 64,906 12,404 ------------- ----------- ------------- ----------- 578,962 271,347 493,339 135,455 ------------- ----------- ------------- ----------- PREFERRED SHARES AT REDEMPTION VALUE $.001 par value per share and $25,000 liquidation value per share, including dividends payable(2) ... 56,003,686 24,202,552 44,653,919 13,525,445 ------------- ----------- ------------- ----------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS ............................. $ 86,431,015 $38,207,240 $ 65,952,706 $21,943,865 ============= =========== ============= =========== Composition of Net Assets Applicable to Common Shareholders: Par value ......................................... $ 6,424 $ 2,701 $ 4,935 $ 1,517 Paid-in capital in excess of par .................. 91,110,843 38,226,462 69,975,321 21,432,670 Undistributed (distributions in excess of) net investment income ........................... 95,731 312,841 (162,871) 307,522 Accumulated net realized gain (loss) .............. (58,039) (142,737) (722,685) 87,315 Net unrealized appreciation (depreciation) ........ (4,723,944) (192,027) (3,141,994) 114,841 ------------- ----------- ------------- ----------- Net assets applicable to common shareholders, August 31, 2003 ................................... $ 86,431,015 $38,207,240 $ 65,952,706 $21,943,865 ============= =========== ============= =========== Net asset value per common share(3) ................. $13.45 $14.15 $13.36 $14.46 ====== ====== ====== ====== (1)Investments at cost .............................. $ 145,498,029 $62,009,442 $ 112,298,468 $35,016,623 (2)Preferred shares outstanding ..................... 2,240 968 1,786 541 (3)Common shares outstanding ........................ 6,424,108 2,700,991 4,935,268 1,517,041
See Notes to Financial Statements. 39 STATEMENTS OF OPERATIONS FOR THE PERIOD(1) ENDED AUGUST 31, 2003 - --------------------------------------------------------------------------------
CALIFORNIA INSURED INSURED MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL INVESTMENT INCOME INCOME TRUST BOND TRUST INCOME TRUST II INCOME TRUST ------------ ----------- --------------- ------------ Interest Income .................................. $ 24,028,072 $14,235,120 $ 28,839,608 $ 4,725,419 ------------ ----------- ------------ ----------- EXPENSES Investment advisory .............................. 2,611,439 1,554,607 2,817,658 524,363 Transfer agent ................................... 14,642 16,055 16,030 13,637 Custodian ........................................ 89,322 69,958 102,333 30,378 Reports to shareholders .......................... 55,183 37,595 52,214 20,455 Trustees ......................................... 43,089 20,411 45,540 10,794 Registration ..................................... 26,408 30,640 15,572 18,862 Independent accountants .......................... 37,846 46,390 49,696 34,923 Legal ............................................ 26,589 26,236 30,483 8,862 Insurance ........................................ 30,526 23,703 51,223 8,379 Organization ..................................... 15,000 -- -- 15,000 Auction Agent .................................... 429,228 233,784 495,853 89,479 Miscellaneous .................................... 36,381 30,219 40,807 12,545 ------------ ----------- ------------ ----------- Total expenses ................................. 3,415,653 2,089,598 3,717,409 787,677 Less fees waived by Advisor .................... (949,614) (717,511) (768,452) (190,677) Less fees paid indirectly ...................... (55,587) (16,709) (22,351) (26,047) ------------ ----------- ------------ ----------- Net expenses ................................... 2,410,452 1,355,378 2,926,606 570,953 ------------ ----------- ------------ ----------- Net investment income .............................. 21,617,620 12,879,742 25,913,002 4,154,466 ------------ ----------- ------------ ----------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments .................................... (4,190,174) (844,614) (7,907,987) 73,698 Futures ........................................ -- 39,058 421,419 -- ------------ ----------- ------------ ----------- (4,190,174) (805,556) (7,486,568) 73,698 Net change in unrealized appreciation (depreciation) .................... (11,769,497) (6,670,938) (16,689,310) (6,110,796) ------------ ----------- ------------ ----------- Net realized and unrealized loss ................... (15,959,671) (7,476,494) (24,175,878) (6,037,098) ------------ ----------- ------------ ----------- DIVIDENDS AND DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM: Net investment income ............................ (1,705,605) (995,851) (2,206,764) (309,490) Net realized gains ............................... -- (68,481) -- -- ------------ ----------- ------------ ----------- Total dividends and distributions .................. (1,705,605) (1,064,332) (2,206,764) (309,490) ------------ ----------- ------------ ----------- NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS ........................ $ 3,952,344 $ 4,338,916 $ (469,640) $(2,192,122) ============ =========== ============ ===========
- ----------------- (1) Commencements of investment operations for the Insured Trusts were October 31, 2002. The statements for the Bond Trusts and the Income II Trusts are for one year. See Notes to Financial Statements. 40 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE PERIOD(1) ENDED AUGUST 31, 2003 - --------------------------------------------------------------------------------
CALIFORNIA FLORIDA CALIFORNIA MUNICIPAL INSURED FLORIDA MUNICIPAL INCOME MUNICIPAL MUNICIPAL INVESTMENT INCOME BOND TRUST TRUST II INCOME TRUST BOND TRUST ----------- ------------- ---------- ----------- Interest Income ................................... $ 4,445,079 $ 9,205,260 $7,513,053 $ 4,286,175 ----------- ------------- ---------- ----------- EXPENSES Investment advisory ............................... 514,030 980,615 871,287 517,987 Transfer agent .................................... 16,047 15,612 13,723 15,927 Custodian ......................................... 17,161 32,609 43,793 17,161 Reports to shareholders ........................... 17,054 22,766 24,324 17,408 Trustees .......................................... 12,593 17,497 14,249 12,563 Registration ...................................... 23,636 5,793 18,862 23,512 Independent accountants ........................... 44,530 47,356 35,376 44,420 Legal ............................................. 9,323 13,269 11,574 9,321 Insurance ......................................... 6,546 21,061 11,968 5,621 Organization ...................................... -- -- 15,000 -- Auction Agent ..................................... 78,297 174,646 143,119 78,057 Miscellaneous ..................................... 19,450 26,901 15,935 19,675 ----------- ------------- ---------- ----------- Total expenses .................................... 758,667 1,358,125 1,219,210 761,652 Less fees waived by Advisor ....................... (237,245) (267,440) (316,831) (239,071) Less fees paid indirectly ......................... -- (25,134) (38,459) -- ----------- ------------- ---------- ----------- Net expenses ...................................... 521,422 1,065,551 863,920 522,581 ----------- ------------- ---------- ----------- Net investment income ............................... 3,923,657 8,139,709 6,649,133 3,763,594 ----------- ------------- ---------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments ..................................... 333,162 (3,243,503) 632,254 617,109 Futures ......................................... -- 154,178 -- -- ----------- ------------- ---------- ----------- 333,162 (3,089,325) 632,254 617,109 Net change in unrealized appreciation (depreciation) ..................... (4,389,282) (8,940,916) (4,769,120) (2,067,781) ----------- ------------- ---------- ----------- Net realized and unrealized loss .................... (4,056,120) (12,030,241) (4,136,866) (1,450,672) ----------- ------------- ---------- ----------- DIVIDENDS AND DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM: Net investment income ............................. (285,766) (699,743) (563,529) (294,203) Net realized gains ................................ (36,465) -- -- (25,515) ----------- ------------- ---------- ----------- Total dividends and distributions ................... (322,231) (699,743) (563,529) (319,718) ----------- ------------- ---------- ----------- NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS ......................... $ (454,694) $ (4,590,275) $1,948,738 $ 1,993,204 =========== ============= ========== ===========
- ---------------------- (1) Commencements of investment operations for the Insured Trusts were October 31, 2002. The statements for the Bond Trusts and the Income II Trusts are for one year. See Notes to Financial Statements. 41 - --------------------------------------------------------------------------------
NEW YORK MARYLAND NEW JERSEY INSURED NEW YORK NEW YORK VIRGINIA MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL BOND TRUST BOND TRUST INCOME TRUST BOND TRUST INCOME TRUST II BOND TRUST ----------- ----------- ------------ ----------- --------------- ----------- $ 2,504,517 $ 2,964,552 $ 5,493,979 $ 3,479,091 $ 5,558,515 $1,922,192 ----------- ----------- ----------- ----------- ----------- ---------- 312,447 343,699 638,316 417,766 616,366 236,733 16,058 16,058 13,866 16,053 16,030 16,058 16,828 14,693 32,535 16,663 23,153 16,828 15,047 15,560 18,491 16,556 19,012 12,041 12,386 12,401 11,020 12,547 12,817 12,230 1,401 1,535 18,862 23,512 3,760 1,099 40,989 40,596 34,917 41,095 46,740 21,000 8,702 8,708 9,912 8,725 10,660 8,521 4,066 4,442 9,543 5,357 10,984 2,288 -- -- 15,000 -- -- -- 48,312 53,896 106,642 63,842 108,625 38,017 14,224 18,104 15,695 17,710 18,325 11,548 ----------- ----------- ----------- ----------- ----------- ---------- 490,460 529,692 924,799 639,826 886,472 376,363 (144,206) (158,630) (232,115) (192,815) (168,100) (109,262) -- -- (27,826) -- (17,014) -- ----------- ----------- ----------- ----------- ----------- ---------- 346,254 371,062 664,858 447,011 701,358 267,101 ----------- ----------- ----------- ----------- ----------- ---------- 2,158,263 2,593,490 4,829,121 3,032,080 4,857,157 1,655,091 ----------- ----------- ----------- ----------- ----------- ---------- 93,425 192,616 (58,730) (143,156) (722,685) 237,709 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ---------- 93,425 192,616 (58,730) (143,156) (722,685) 237,709 (1,028,809) (2,102,018) (4,723,944) (1,803,841) (3,853,513) (910,742) ----------- ----------- ----------- ----------- ----------- ---------- (935,384) (1,909,402) (4,782,674) (1,946,997) (4,576,198) (673,033) ----------- ----------- ----------- ----------- ----------- ---------- (192,706) (194,504) (420,505) (249,849) (476,593) (121,007) (11,022) (16,272) -- (21,352) -- (22,888) ----------- ----------- ----------- ----------- ----------- ---------- (203,728) (210,776) (420,505) (271,201) (476,593) (143,895) ----------- ----------- ----------- ----------- ----------- ---------- $ 1,019,151 $ 473,312 $ (374,058) $ 813,882 $ (195,634) $ 838,163 =========== =========== =========== =========== =========== ==========
42 STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED AUGUST 31, 2002 - --------------------------------------------------------------------------------
INSURED MUNICIPAL INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II ------------- ----------------------------- ----------------------------- INCREASE (DECREASE) IN NET ASSETS 2003 2003 2002 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS ------------- ------------- ------------- ------------- ------------- OPERATIONS: Net investment income ........................... $ 21,617,620 $ 12,879,742 $ 3,112,184 $ 25,913,002 $ 784,425 Net realized gain (loss) ........................ (4,190,174) (805,556) 367,062 (7,486,568) -- Net change in unrealized appreciation ........... (11,769,497) (6,670,938) 5,302,975 (16,689,310) 1,645,658 Dividends and distributions to preferred shareholders from: Net investment income ......................... (1,705,605) (995,851) (257,276) (2,206,764) -- Net realized gain ............................. -- (68,481) -- -- -- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations ................................. 3,952,344 4,338,916 8,524,945 (469,640) 2,430,083 ------------- ------------- ------------- ------------- ------------- DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM: Net investment income ........................... (18,333,305) (10,290,066) (2,557,095) (22,875,695) -- Net realized gain ............................... -- (529,092) -- -- -- ------------- ------------- ------------- ------------- ------------- Total dividends and distributions ................. (18,333,305) (10,819,158) (2,557,095) (22,875,695) -- ------------- ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS:(3) Net proceeds from the issuance of common shares.. 343,210,001 -- 133,612,802 -- 306,727,751 Net proceeds from the underwriters' over- allotment option exercised .................... 28,590,000 -- 10,743,750 4,288,500 14,325,000 Underwriting discounts and offering costs relating to the issuance of preferred shares .. (2,657,181) -- (1,265,738) (2,294,668) -- Reinvestment of common dividends ................ 1,675,800 178,549 193,896 205,295 -- ------------- ------------- ------------- ------------- ------------- Net proceeds from capital share transactions ...... 370,818,620 178,549 143,284,710 2,199,127 321,052,751 ------------- ------------- ------------- ------------- ------------- Total increase (decrease) ......................... 356,437,659 (6,301,693) 149,252,560 (21,146,208) 323,482,834 ------------- ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of period ............................... -- 149,252,560 -- 323,482,834 -- ------------- ------------- ------------- ------------- ------------- End of period ..................................... $ 356,437,659 $ 142,950,867 $ 149,252,560 $ 302,336,626 $ 323,482,834 ============= ============= ============= ============= ============= End of period undistributed (distributions in excess of) net investment income ............. $ 1,592,764 $ 1,899,905 $ 297,813 $ 1,629,878 $ 784,425
- --------------------- (1) Commencements of investment operations for the Insured Trusts were October 31, 2002. The statements for the Bond Trusts and the Income II Trusts are for one year. This information includes the initial investment by BlackRock Funding, Inc. (2) Commencements of investment operations for the Bond Trusts and the Income II Trusts were April 30, 2002, and July 30, 2002, respectively. This information includes the initial investment by BlackRock Funding, Inc. (3) Prior period amounts have been reclassified to conform to the current period's presentation. See Notes to Financial Statements. 43 - --------------------------------------------------------------------------------
CALIFORNIA FLORIDA INSURED INSURED MUNICIPAL CALIFORNIA CALIFORNIA MUNICIPAL INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II INCOME TRUST ------------ ------------------------------------ ------------------------------------- ------------- 2003 2003 2002 2003 2002 2003 ------------ ------------ ------------ ------------- ------------- ------------- $ 4,154,466 $ 3,923,657 $ 926,051 $ 8,139,709 $ 128,802 $ 6,649,133 73,698 333,162 101,627 (3,089,325) -- 632,254 (6,110,796) (4,389,282) 2,190,691 (8,940,916) 816,522 (4,769,120) (309,490) (285,766) (79,291) (699,743) -- (563,529) -- (36,465) -- -- -- -- ------------ ------------ ------------ ------------- ------------- ------------- (2,192,122) (454,694) 3,139,078 (4,590,275) 945,324 1,948,738 ------------ ------------ ------------ ------------- ------------- ------------- (3,551,261) (3,151,958) (784,357) (7,764,974) -- (5,881,358) -- (278,186) -- -- -- -- ------------ ------------ ------------ ------------- ------------- ------------- (3,551,261) (3,430,144) (784,357) (7,764,974) -- (5,881,358) ------------ ------------ ------------ ------------- ------------- ------------- 71,605,001 -- 42,994,952 -- 105,901,001 114,493,001 3,573,750 -- 4,798,875 2,144,250 5,730,000 10,006,500 (609,518) (21,849) (425,251) (849,475) -- (944,848) 84,057 12,499 110,958 222,296 -- 156,124 ------------ ------------ ------------ ------------- ------------- ------------- 74,653,290 (9,350) 47,479,534 1,517,071 111,631,001 123,710,777 ------------ ------------ ------------ ------------- ------------- ------------- 68,909,907 (3,894,188) 49,834,255 (10,838,178) 112,576,325 119,778,157 ------------ ------------ ------------ ------------- ------------- ------------- -- 49,834,255 -- 112,576,325 -- -- ------------ ------------ ------------ ------------- ------------- ------------- $ 68,909,907 $ 45,940,067 $ 49,834,255 $ 101,738,147 $ 112,576,325 $ 119,778,157 ============ ============ ============ ============= ============= ============= $ 308,708 $ 558,336 $ 62,403 $ (182,190) $ 128,802 $ 219,079
44 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED AUGUST 31, 2002 - --------------------------------------------------------------------------------
FLORIDA MARYLAND MUNICIPAL BOND TRUST MUNICIPAL BOND TRUST ------------------------------ ------------------------------- INCREASE (DECREASE) IN NET ASSETS 2003 2002 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS ------------ ------------- ------------- ------------- OPERATIONS: Net investment income ................................. $ 3,763,594 $ 851,789 $ 2,158,263 $ 506,802 Net realized gain (loss) .............................. 617,109 -- 93,425 (2,107) Net change in unrealized appreciation ................. (2,067,781) 2,386,695 (1,028,809) 1,148,998 Dividends and distributions to preferred shareholders from: Net investment income ............................... (294,203) (77,259) (192,706) (51,559) Net realized gain ................................... (25,515) -- (11,022) -- ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations ....................................... 1,993,204 3,161,225 1,019,151 1,602,134 ------------ ------------- ------------- ------------- DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM: Net investment income ................................. (3,038,237) (756,694) (1,696,742) (422,681) Net realized gain ..................................... (186,453) -- (72,550) -- ------------ ------------- ------------- ------------- Total dividends and distributions ....................... (3,224,690) (756,694) (1,769,292) (422,681) ------------ ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS:(3) Net proceeds from the issuance of common shares ....... -- 41,921,628 -- 25,271,852 Net proceeds from the underwriters' over- allotment option exercised .......................... -- 5,371,875 -- 3,509,625 Underwriting discounts and offering costs relating to the issuance of preferred shares ........ (28,492) (422,474) (50,675) (258,959) Reinvestment of common dividends ...................... 18,121 8,334 18,519 2,979 ------------ ------------- ------------- ------------- Net proceeds from capital share transactions ............ (10,371) 46,879,363 (32,156) 28,525,497 ------------ ------------- ------------- ------------- Total increase (decrease) ............................... (1,241,857) 49,283,894 (782,297) 29,704,950 ------------ ------------- ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of period ..................................... 49,283,894 -- 29,704,950 -- ------------ ------------- ------------- ------------- End of period ........................................... $ 48,042,037 $ 49,283,894 $ 28,922,653 $ 29,704,950 ============ ============= ============= ============= End of period undistributed (distributions in excess of) net investment income ...................... $ 458,990 $ 17,836 $ 311,348 $ 32,562
- -------------------- (1) Commencements of investment operations for the Insured Trusts were October 31, 2002. The statements for the Bond Trusts and the Income II Trusts are for one year. This information includes the initial investment by BlackRock Funding, Inc. (2) Commencements of investment operations for the Bond Trusts and the Income II Trusts were April 30, 2002, and July 30, 2002, respectively. This information includes the initial investment by BlackRock Funding, Inc. (3) Prior period amounts have been reclassified to conform to the current period's presentation. See Notes to Financial Statements. 45 - --------------------------------------------------------------------------------
NEW YORK INSURED NEW JERSEY MUNICIPAL NEW YORK NEW YORK MUNICIPAL BOND TRUST INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II ------------------------------- ------------ ------------------------------- ------------------------------- 2003 2002 2003 2003 2002 2003 2002 ------------ ------------ ------------ ------------ ------------ ------------ ------------- $ 2,593,490 $ 567,668 $ 4,829,121 $ 3,032,080 $ 679,537 $ 4,857,157 $ 103,447 192,616 88,643 (58,730) (143,156) 176,216 (722,685) -- (2,102,018) 838,636 (4,723,944) (1,803,841) 1,611,814 (3,853,513) 711,519 (194,504) (48,286) (420,505) (249,849) (64,545) (476,593) -- (16,272) (565) -- (21,352) (247) -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------- 473,312 1,446,096 (374,058) 813,882 2,402,775 (195,634) 814,966 ------------ ------------ ------------ ------------ ------------ ------------ ------------- (2,110,955) (519,382) (4,327,194) (2,475,984) (614,992) (4,661,882) -- (143,682) (6,073) -- (155,250) (2,354) -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------- (2,254,637) (525,455) (4,327,194) (2,631,234) (617,346) (4,661,882) -- ------------ ------------ ------------ ------------ ------------ ------------ ------------- -- 28,702,502 85,901,501 -- 35,135,552 -- 64,447,001 -- 3,581,250 5,718,000 -- 3,438,000 1,072,125 5,013,750 (48,427) (289,857) (711,970) (37,459) (345,056) (567,282) -- 75,007 66,332 224,736 -- 48,126 29,662 -- ------------ ------------ ------------ ------------ ------------ ------------ ------------- 26,580 32,060,227 91,132,267 (37,459) 38,276,622 534,505 69,460,751 ------------ ------------ ------------ ------------ ------------ ------------ ------------- (1,754,745) 32,980,868 86,431,015 (1,854,811) 40,062,051 (4,323,011) 70,275,717 ------------ ------------ ------------ ------------ ------------ ------------ ------------- 32,980,868 -- -- 40,062,051 -- 70,275,717 -- ------------ ------------ ------------ ------------ ------------ ------------ ------------- $ 31,226,123 $ 32,980,868 $ 86,431,015 $ 38,207,240 $ 40,062,051 $ 65,952,706 $ 70,275,717 ============ ============ ============ ============ ============ ============ ============= $ 291,378 $ (6,638) $ 95,731 $ 312,841 $ (2,601) $ (162,871) $ 103,447
46 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEAR ENDED AUGUST 31, 2003, AND FOR THE PERIOD(1) ENDED AUGUST 31, 2002 - --------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BOND TRUST ------------------------------- INCREASE (DECREASE) IN NET ASSETS 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS ------------ ------------ OPERATIONS: Net investment income ................................. $ 1,655,091 $ 412,690 Net realized gain ..................................... 237,709 23,871 Net change in unrealized appreciation ................. (910,742) 1,025,583 Dividends and distributions to preferred shareholders from: Net investment income ............................... (121,007) (39,206) Net realized gain ................................... (22,888) -- ------------ ------------ Net increase in net assets resulting from operations ....................................... 838,163 1,422,938 ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM: Net investment income ................................. (1,289,511) (320,535) Net realized gain ..................................... (151,377) -- ------------ ------------ Total dividends and distributions ....................... (1,440,888) (320,535) ------------ ------------ CAPITAL SHARE TRANSACTIONS:(2) Net proceeds from the issuance of common shares ....... -- 19,270,352 Net proceeds from the underwriters' overallotment option exercised .................................... -- 2,363,625 Underwriting discounts and offering costs relating to the issuance of preferred shares ........ (58,033) (196,816) Reinvestment of common dividends ...................... 60,042 5,017 ------------ ------------ Net proceeds from capital share transactions ............ 2,009 21,442,178 ------------ ------------ Total increase (decrease) ............................... (600,716) 22,544,581 ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of period ..................................... 22,544,581 -- ------------ ------------ End of period ........................................... $ 21,943,865 $ 22,544,581 ============ ============ End of period undistributed net investment income ....... $ 307,522 $ 52,949
- ------------------- (1) Commencements of investment operations for Virginia Bond was April 30, 2002. This information includes the initial investment by BlackRock Funding, Inc. (2) Prior period amounts have been reclassified to conform to the current period's presentation. See Notes to Financial Statements. 47 FINANCIAL HIGHLIGHTS FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED AUGUST 31, 2002 - --------------------------------------------------------------------------------
INSURED MUNICIPAL INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II ------------ ------------------------ ------------------------- 2003 2003 2002 2003 2002 ------------- -------- -------- ---------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ............. $ 14.33(3) $ 14.76 $ 14.33(3) $ 14.40 $ 14.33(3) -------- -------- -------- -------- -------- Investment operations: Net investment income .......................... 0.83 1.28 0.31 1.14 0.03 Net realized and unrealized gain (loss) ........ (0.62) (0.74) 0.52 (1.06) 0.07 Dividends to preferred shareholders: Net investment income ........................ (0.07) (0.10) (0.03) (0.10) -- Net realized gains ........................... -- (0.01) -- -- -- -------- -------- -------- -------- -------- Net increase (decrease) from investment operations 0.14 0.43 0.80 (0.02) 0.10 -------- -------- -------- -------- -------- Dividends to common shareholders: Net investment income .......................... (0.70) (1.02) (0.25) (1.00) -- Net realized gains ............................. -- (0.05) -- -- -- -------- -------- -------- -------- -------- Total dividends and distributions ................ (0.70) (1.07) (0.25) (1.00) -- -------- -------- -------- -------- -------- Capital charges with respect to issuance of: Common shares .................................. (0.03) -- (0.03) -- (0.03) Preferred shares ............................... (0.10) -- (0.09) (0.10) -- -------- -------- -------- -------- -------- Total capital charges ............................ (0.13) -- (0.12) (0.10) (0.03) -------- -------- -------- -------- -------- Net asset value, end of period ................... $ 13.64 $14.12 $14.76 $13.28 $ 14.40 ======== ======== ======== ======== ======== Market price, end of period ...................... $ 13.51 $13.66 $14.90 $13.11 $ 15.00 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(4) ....................... (5.39)% (1.20)% 1.07% (6.00)% 0.00% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(5) Expenses after fees waived and paid indirectly ... 0.77%(6) 0.91% 0.90%(6) 0.92% 0.65%(7) Expenses before fees waived and paid indirectly .. 1.10%(6) 1.41% 1.32%(6) 1.17% 0.80%(7) Net investment income after fees waived and paid indirectly and before preferred share dividends 6.95%(6) 8.66% 6.35%(6) 8.15% 2.82%(7) Preferred share dividends ........................ 0.55%(6) 0.67% 0.53%(6) 0.69% 0.00%(7) Net investment income available to common shareholders ............................ 6.40%(6) 7.99% 5.82%(6) 7.46% 2.82%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) .. $372,269 $148,670 $144,196 $318,014 $307,165 Portfolio turnover ............................... 46% 21% 22% 118% 0% Net assets of common shareholders, end of period (000) ............................ $356,438 $142,951 $149,253 $302,337 $323,483 Preferred shares value outstanding (000) ......... $228,975 $ 90,500 $ 90,500 $205,550 $ -- Asset coverage per preferred share, end of period $ 63,919 $ 64,491 $ 66,233 $ 61,774 $ --
- --------------- (1) Commencements of investment operations for the Insured Trusts were October 31, 2002. The statements for the Bond Trusts and the Income II Trusts are for one year. This information includes the initial investments by BlackRock Funding, Inc. (2) Commencements of investment operations for the Bond Trusts and the Income II Trusts were April 30, 2002, and July 30, 2002, respectively. This information includes the initial investments by BlackRock Funding, Inc. (3) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (4) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under each Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (5) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (6) Annualized. (7) These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Income II Trusts. Please refer to each Trust's prospectus for the estimated expense ratios. The information in these Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for each Trust's common shares. See Notes to Financial Statements. 48 FINANCIAL HIGHLIGHTS (CONTINUED) FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED AUGUST 31, 2002 - --------------------------------------------------------------------------------
CALIFORNIA INSURED MUNICIPAL CALIFORNIA CALIFORNIA INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II ------------- ------------------------- ------------------------- 2003 2003 2002 2003 2002 -------- -------- -------- -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ............. $ 14.33(3) $ 14.87 $ 14.33(3) $ 14.42 $ 14.33(3) -------- -------- -------- -------- -------- Investment operations: Net investment income .......................... 0.79 1.18 0.28 1.02 0.02 Net realized and unrealized gain (loss) ........ (1.15) (1.21) 0.63 (1.51) 0.10 Dividends to preferred shareholders: Net investment income ........................ (0.06) (0.09) (0.02) (0.09) -- Net realized gains ........................... -- (0.01) -- -- -- -------- -------- -------- -------- -------- Net increase (decrease) from investment operations (0.42) (0.13) 0.89 (0.58) (0.12) -------- -------- -------- -------- -------- Dividends to common shareholders: Net investment income .......................... (0.67) (0.94) (0.23) (0.97) -- Net realized gains ............................. -- (0.08) -- -- -- -------- -------- -------- -------- -------- Total dividends and distributions ................ (0.67) (1.02) (0.23) (0.97) -- -------- -------- -------- -------- -------- Capital charges with respect to issuance of: Common shares .................................. (0.03) -- (0.03) -- (0.03) Preferred shares ............................... (0.12) (0.01) (0.09) (0.11) -- -------- -------- -------- -------- -------- Total capital charges ............................ (0.15) (0.01) (0.12) (0.11) (0.03) -------- -------- -------- -------- -------- Net asset value, end of period ................... $ 13.09 $ 13.71 $ 14.87 $ 12.76 $ 14.42 ======== ======== ======== ======== ======== Market price, end of period ...................... $ 13.01 $ 13.15 $ 14.58 $ 13.01 $ 15.01 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(4) ....................... (8.98)% (2.92)% (1.23)% (6.94)% 0.07% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(5) Expenses after fees waived and paid indirectly ... 0.92%(6) 1.06% 1.12%(6) 0.97% 1.05%(7) Expenses before fees waived and paid indirectly .. 1.27%(6) 1.54% 1.53%(6) 1.23% 1.20%(7) Net investment income after fees waived and paid indirectly and before preferred share dividends 6.69%(6) 7.99% 5.75%(6) 7.38% 1.35%(7) Preferred share dividends ........................ 0.50%(6) 0.58% 0.49%(6) 0.63% 0.00%(7) Net investment income available to common shareholders ............................ 6.19%(6) 7.41% 5.26%(6) 6.75% 1.35%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) .. $ 74,302 $ 49,107 $ 47,390 $110,286 $105,895 Portfolio turnover ............................... 41% 22% 18% 85% 0% Net assets of common shareholders, end of period (000) ............................ $ 68,910 $ 45,940 $ 49,834 $101,738 $112,576 Preferred shares value outstanding (000) ......... $ 46,500 $ 29,975 $ 29,975 $ 71,950 $ -- Asset coverage per preferred share, end of period $ 62,052 $ 63,318 $ 66,569 $ 60,353 $ --
- ----------- (1) Commencements of investment operations for the Insured Trusts were October 31, 2002. The statements for the Bond Trusts and the Income II Trusts are for one year. This information includes the initial investments by BlackRock Funding, Inc. (2) Commencements of investment operations for the Bond Trusts and the Income II Trusts were April 30, 2002, and July 30, 2002, respectively. This information includes the initial investments by BlackRock Funding, Inc. (3) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (4) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under each Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (5) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (6) Annualized. (7) These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Income II Trusts. Please refer to each Trust's prospectus for the estimated expense ratios. The information in these Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for each Trust's common shares. See Notes to Financial Statements. 49 - --------------------------------------------------------------------------------
FLORIDA INSURED MUNICIPAL FLORIDA MARYLAND NEW JERSEY INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL BOND TRUST MUNICIPAL BOND TRUST - ------------ -------------------------- -------------------------- ---------------------- 2003 2003 2002 2003 2002 2003 2002 -------- ------- ------- ------- ------- ------- ------- $ 14.33(3) $ 14.90 $ 14.33(3) $ 14.76 $ 14.33(3) $ 14.58 $ 14.33(3) -------- ------- ------- ------- ------- ------- ------- 0.75 1.14 0.26 1.07 0.25 1.15 0.25 (0.47) (0.43) 0.68 (0.45) 0.53 (0.85) 0.37 (0.06) (0.09) (0.02) (0.10) (0.03) (0.09) (0.02) -- (0.01) -- (0.01) -- (0.01) -- ======== ======= ======= ======= ======= ======= ======= 0.22 0.61 0.92 0.51 0.75 0.20 0.60 ======== ======= ======= ======= ======= ======= ======= (0.67) (0.92) (0.23) (0.84) (0.21) (0.93) (0.23) -- (0.06) -- (0.04) -- (0.06) -- ======== ======= ======= ======= ======= ======= ======= (0.67) (0.98) (0.23) (0.88) (0.21) (0.99) (0.23) ======== ======= ======= ======= ======= ======= ======= (0.03) -- (0.03) -- (0.02) -- (0.03) (0.11) (0.01) (0.09) (0.03) (0.09) (0.02) (0.09) ======== ======= ======= ======= ======= ======= ======= (0.14) (0.01) (0.12) (0.03) (0.11) (0.02) (0.12) ======== ======= ======= ======= ======= ======= ======= $ 13.74 $ 14.52 $ 14.90 $ 14.36 $ 14.76 $ 13.77 $ 14.58 ======== ======= ======= ======= ======= ======= ======= $ 13.20 $ 13.55 $ 14.92 $ 13.90 $ 14.95 $ 13.64 $ 14.65 ======== ======= ======= ======= ======= ======= ======= (7.78)% (2.90)% 1.03% (1.32)% 1.10% (0.10)% (0.75)% ======== ======= ======= ======= ======= ======= ======= 0.83%(6) 1.05% 1.12%(6) 1.15% 1.12%(6) 1.14% 1.15% 1.17%(6) 1.53% 1.54%(6) 1.63% 1.54%(6) 1.62% 1.57% 6.39%(6) 7.54% 5.36%(6) 7.18% 5.30%(6) 7.94% 5.29% 0.54%(6) 0.59% 0.49%(6) 0.64% 0.54%(6) 0.60% 0.45% 5.85%(6) 6.95% 4.87%(6) 6.54% 4.76%(6) 7.34% 4.84% $124,543 $49,915 $46,792 $30,069 $28,153 $32,652 $31.611 50% 19% 0% 14% 1% 20% 17% $119,778 $48,042 $49,284 $28,923 $29,705 $31,226 $32,981 $ 76,000 $29,775 $29,775 $18,000 $18,000 $20,225 $20,225 $ 64,404 $65,340 $66,383 $65,172 $66,259 $63,602 $65,771
50 FINANCIAL HIGHLIGHTS (CONTINUED) FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED AUGUST 31, 2002 - --------------------------------------------------------------------------------
NEW YORK INSURED MUNICIPAL NEW YORK NEW YORK INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II ------------ ----------------------- ------------------------- 2003 2003 2002 2003 2002 ------- ------- ------- ------- ------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ................ $ 14.33(3) $ 14.83 $ 14.33(3) $ 14.47 $ 14.33(3) ------- ------- ------- ------- ------- Investment operations: Net investment income ............................. 0.75 1.12 0.25 0.98 0.02 Net realized and unrealized gain (loss) ........... (0.75) (0.71) 0.62 (0.94) 0.15 Dividends to preferred shareholders: Net investment income ........................... (0.07) (0.09) (0.02) (0.10) -- Net realized gains .............................. -- (0.01) -- -- -- ------- ------- ------- ------- ------- Net increase (decrease) from investment operations .. (0.07) 0.31 0.85 (0.06) 0.17 ------- ------- ------- ------- ------- Dividends to common shareholders: Net investment income ............................. (0.67) (0.92) (0.23) (0.94) -- Net realized gains ................................ -- (0.06) -- -- -- ------- ------- ------- ------- ------- Total dividends and distributions ................... (0.67) (0.98) (0.23) (0.94) -- ------- ------- ------- ------- ------- Capital charges with respect to issuance of: Common shares ..................................... (0.03) -- (0.03) -- (0.03) Preferred shares .................................. (0.11) (0.01) (0.09) (0.11) -- ------- ------- ------- ------- ------- Total capital charges ............................... (0.14) (0.01) (0.12) (0.11) (0.03) ------- ------- ------- ------- ------- Net asset value, end of period ...................... $ 13.45 $ 14.15 $ 14.83 $ 13.36 $ 14.47 ======= ======= ======= ======= ======= Market price, end of period ......................... $ 13.28 $ 13.35 $ 14.50 $ 13.12 $ 15.10 ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN(4) .......................... (7.13)% (1.26)% (1.78)% (6.93)% 0.67% ======= ======= ======= ======= ======= RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(5) Expenses after fees waived and paid indirectly ...... 0.87%(6) 1.12% 1.12%(6) 1.00% 1.43%(7) Expenses before fees waived and paid indirectly ..... 1.22%(6) 1.60% 1.54%(6) 1.27% 1.58%(7) Net investment income after fees waived and paid indirectly and before preferred share dividends .. 6.35%(6) 7.57% 5.24%(6) 6.95% 1.77%(7) Preferred share dividends ........................... 0.55%(6) 0.62% 0.50%(6) 0.68% 0.00%(7) Net investment income available to common shareholders ............................... 5.80%(6) 6.95% 4.74%(6) 6.27% 1.77%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ..... $90,967 $40,072 $38,183 $69,863 $64,673 Portfolio turnover .................................. 80% 7% 15% 40% 0% Net assets of common shareholders, end of period (000) ............................... $86,431 $38,207 $40,062 $65,953 $70,276 Preferred shares value outstanding (000) ............ $56,000 $24,200 $24,200 $44,650 $ -- Asset coverage per preferred share, end of period ... $63,587 $64,473 $66,390 $61,930 $ --
- --------------- (1) Commencements of investment operations for the Insured Trusts were October 31, 2002. The statements for the Bond Trusts and the Income II Trusts are for one year. This information includes the initial investments by BlackRock Funding, Inc. (2) Commencements of investment operations for the Bond Trusts and the Income II Trusts were April 30, 2002, and July 30, 2002, respectively. This information includes the initial investments by BlackRock Funding, Inc. (3) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (4) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under each Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (5) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (6) Annualized. (7) These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Income II Trusts. Please refer to each Trust's prospectus for the estimated expense ratios. The information in these Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for each Trust's common shares. See Notes to Financial Statements. 51 - -------------------------------------------------------------------------------- VIRGINIA MUNICIPAL BOND TRUST ----------------------- 2003 2002 ------- ------- $ 14.90 $ 14.33(3) ------- ------- 1.09 0.27 (0.44) 0.65 (0.08) (0.03) (0.02) -- ------- ------- 0.55 0.89 ------- ------- (0.85) (0.21) (0.10) -- ------- ------- (0.95) (0.21) ------- ------- -- (0.02) (0.04) (0.09) ------- ------- (0.04) (0.11) ------- ------- $ 14.46 $ 14.90 ======= ======= $ 14.40 $ 15.20 ======= ======= 0.94% 2.81% ======= ======= 1.17% 1.12%(6) 1.64% 1.54%(6) 7.23% 5.70%(6) 0.53% 0.54%(6) 6.70% 5.16%(6) $22,896 $21,321 18% 8% $21,944 $22,545 $13,525 $13,525 $65,562 $66,674 52 NOTES TO FINANCIAL STATEMENTS - --------------------------------------------------------------- NOTE 1. ORGANIZATION & ACCOUNTING POLICIES BlackRock Insured Municipal Income Trust ("Insured Municipal"), BlackRock California Insured Municipal Income Trust ("California Insured"), BlackRock Florida Insured Municipal Income Trust ("Florida Insured"), BlackRock New York Insured Municipal Income Trust ("New York Insured") (collectively the "Insured Trusts"), BlackRock Municipal Bond Trust ("Municipal Bond"), BlackRock California Municipal Bond Trust ("California Bond"), BlackRock Florida Municipal Bond Trust ("Florida Bond"), BlackRock Maryland Municipal Bond Trust ("Maryland Bond"), BlackRock NewJersey Municipal Bond Trust ("New Jersey Bond"), BlackRock New York Municipal Bond Trust ("New York Bond"), BlackRock Virginia Municipal Bond Trust ("Virginia Bond")(collectively the "Bond Trusts"), BlackRock Municipal Income Trust II("Municipal Income II"), BlackRock California Municipal Income Trust II("California Income II") and BlackRock New York Municipal Income Trust II("New York Income II") (collectively the "Income IITrusts")(collectively the "Trusts") are organized as Delaware statutory trusts. The Insured Trusts were organized on August 19, 2002. They had no transactions until October 19, 2002, when each of the Insured Trusts sold 8,028 common shares for $115,001 to BlackRock Funding, Inc. Investment operations for the Insured Trusts commenced on October 31, 2002. Insured Municipal, Municipal Bond and Municipal Income II are registered as diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. California Insured, California Bond, California Income II, Florida Insured, Florida Bond, Maryland Bond, New Jersey Bond, New York Insured, New York Bond, New York Income II and Virginia Bond are registered as non-diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. The following is a summary of significant accounting policies followed by the Trusts. SECURITIES VALUATION: Municipal securities (including commitments to purchase such securities on a "when-issued" basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust's Board of Trustees (the "Board"). In determining the value of a particular security, pricing services may use certain information with respect to transactions in such securities, quotations from bond dealers, market transactions in comparable securities and various relationships between securities. Short-term investments; securities maturing in less than 60 days are valued at amortized cost. Any securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust's Board. SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on trade date. Realized and unrealized gains and losses are calculated on the identified cost basis. Each Trust also records interest income on an accrual basis and amortizes premium and accretes discount to interest income on securities purchased using the interest method. FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by "marking-to-market" on a daily basis to reflect the market value of the contract at the end of each day's trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, a Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust's basis in the contract. Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly. At August 31, 2003, there were no open financial futures contracts in any of the Trusts. SEGREGATION: In cases in which the Investment Company Act of 1940, as amended, and the interpretive positions of the Securities and Exchange Commission ("SEC") require that each Trust segregate assets in connection with certain investments (e.g., when issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. FEDERAL INCOME TAXES: It is each Trust's intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net income to shareholders. For this reason and because substantially all of the gross income of each Trust consists of tax-exempt interest, no Federal income tax provisions are required. DIVIDENDS AND DISTRIBUTIONS: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 4. ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. DEFERRED COMPENSATION AND BLACKROCK CLOSED-END SHARE EQUIVALENT INVESTMENT PLAN: Under the revised deferred compensation plan approved by each Trust's Board, non-interested Trustees may elect to defer receipt of all or a portion of their annual compensation. As of January 1, 2003, the Board elected to require its non-interested members to defer a portion of their annual complex compensation pursuant to the plan. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end funds selected by the Trustees. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts. 53 The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations. RECLASSIFICATION OF CAPITAL ACCOUNTS: In order to present undistributed (distribution in excess of) net investment income ("UNII"), accumulated net realized gain ("Accumulated Gain") and paid-in capital in excess of par ("PIC") more closely to its tax character the following accounts, for each Trust, were increased (decreased): TRUST UNII ACCUMULATED GAIN PIC - ----- ------- ---------------- ----- Insured Municipal $14,054 $ 946 $(15,000) Municipal Bond 8,267 1,733 (10,000) Municipal Income II 14,910 90 (15,000) California Insured 14,993 7 (15,000) California Bond 10,000 -- (10,000) California Income II 14,016 984 (15,000) Florida Insured 14,833 167 (15,000) Florida Bond 10,000 -- (10,000) Maryland Bond 9,971 29 (10,000) New Jersey Bond 9,985 15 (10,000) New York Insured 14,309 691 (15,000) New York Bond 9,195 805 (10,000) New York Income II 15,000 -- (15,000) Virginia Bond 10,000 -- (10,000) NOTE 2. AGREEMENTS Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the "Advisor"), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to each Trust. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The investment management agreement covers both investment advisory and administration services. Each Trust's investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.55% for the Insured Trusts and Income II Trusts and 0.65% for the Bond Trusts, of each Trust's average weekly managed assets. "Managed assets" means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses of each Trust. With respect to the Insured Trusts the waiver, as a percentage of managed assets, is as follows: 0.20% for the first 5 years of each Trust's operations, 0.15% in year 6, 0.10% in year 7, and 0.05% in year 8. With respect to the Bond Trusts the waiver, as a percentage of managed assets, is as follows: 0.30% for the first 5 years of each Trust's operations, 0.25% in year 6, 0.20% in year 7, 0.15% in year 8, 0.10% in year 9 and 0.05% in year 10. With respect to the Income II Trusts the waiver, as a percentage of managed assets, is as follows: 0.15% for the first 5 years of each Trust's operations, 0.10% in year 6 through year 7, 0.05% in year 8 through year 10. Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for certain operational support services provided to each Trust. Pursuant to the terms of the custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees. NOTE 3. PORTFOLIO SECURITIES Purchases and sales of investment securities, other than short-term investments, for the period ended August 31, 2003, were as follows:
TRUST PURCHASES SALES TRUST PURCHASES SALES - -------- ------------ ------------ ----- ------------ ------------ Insured Municipal $818,968,802 $245,225,845 Florida Bond $ 16,032,082 $ 15,147,759 Municipal Bond 49,105,751 55,449,652 Maryland Bond 6,384,305 6,967,313 Municipal Income II 772,393,435 577,680,088 New Jersey Bond 10,296,102 10,586,513 California Insured 162,860,019 44,678,085 New York Insured 245,441,228 100,292,039 California Bond 17,114,065 18,708,323 New York Bond 4,927,250 4,692,700 California Income II 241,542,049 142,736,260 New York Income II 94,792,222 42,512,910 Florida Insured 284,740,366 87,367,096 Virginia Bond 6,361,760 6,684,485
54 At August 31, 2003, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by each Trust were as follows:
TRUST COST APPRECIATION DEPRECIATION NET - ----- ------------ ------------ ------------ ----------- Insured Municipal $573,649,817 $5,019,770 $16,917,988 $(11,898,218) Municipal Bond 228,667,847 3,605,944 4,972,414 (1,366,470) Municipal Income II 521,867,997 1,346,168 16,375,127 (15,028,959) California Insured 118,909,109 109,529 6,220,325 (6,110,796) California Bond 76,413,796 716,409 2,913,387 (2,196,978) California Income II 183,707,707 181,019 8,302,381 (8,121,362) Florida Insured 198,272,791 120,141 4,888,747 (4,768,606) Florida Bond 77,444,970 1,245,279 912,802 332,477 Maryland Bond 46,066,493 523,498 402,015 121,483 New Jersey Bond 52,245,446 644,502 1,902,209 (1,257,707) New York Insured 145,507,966 49,569 4,783,450 (4,733,881) New York Bond 62,009,010 1,063,591 1,255,186 (191,595) New York Income II 112,298,296 110,592 3,253,284 (3,142,692) Virginia Bond 34,997,690 548,461 414,687 133,774
For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year end. These amounts may be used to offset future realized capital gains, if any: PRIOR TAX CAPITAL LOSS TRUST YEAR END CARRYFORWARD AMOUNT EXPIRES - ----- --------- ------------------- ------- Municipal Income II 06/30/03 $1,338,302 06/11 California Income II 06/30/03 1,454,313 06/11 Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward amounts. NOTE 4. CAPITAL There are an unlimited number of $0.001 par value common shares of beneficial interest authorized for each Trust. Each Trust may classify or reclassify any unissued common shares into one or more series of Auction Market Preferred Shares ("preferred shares"). At August 31, 2003, the shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:
COMMON COMMON SHARES COMMON SHARES COMMON TRUST OUTSTANDING SHARES OWNED TRUST OUTSTANDING SHARES OWNED - ----- ----------- ------------ ----- ----------- ------------ Insured Municipal 26,125,458 8,029 Florida Bond 3,309,483 7,679 Municipal Bond 10,123,055 7,679 Maryland Bond 2,014,121 7,679 Municipal Income II 22,773,392 8,027 New Jersey Bond 2,267,518 7,679 California Insured 5,264,025 8,029 New York Insured 6,424,108 8,029 California Bond 3,351,150 7,679 New York Bond 2,700,991 7,679 California Income II 7,974,413 8,027 New York Income II 4,935,268 8,027 Florida Insured 8,718,823 8,029 Virginia Bond 1,517,041 7,679
55 Transactions in common shares of beneficial interest for the periods ended August 31, 2003 and 2002, were as follows:
SHARES FROM ----------------------------------------------------------------- INITIAL UNDERWRITERS' EXERCISING REINVESTMENT NET INCREASE IN TRUST PUBLIC OFFERING THE OVER-ALLOTMENT OPTION OF DIVIDENDS SHARES OUTSTANDING - ----- --------------- ------------------------- ------------ ------------------ Insured Municipal 24,008,028 2,000,000 117,430 26,125,458 Municipal Bond 9,347,679 750,000 25,376 10,123,055 Municipal Income II 21,458,028 1,300,000 15,364 22,773,392 California Insured 5,008,028 250,000 5,997 5,264,025 California Bond 3,007,679 335,000 8,471 3,351,150 California Income II 7,408,028 550,000 16,385 7,974,413 Florida Insured 8,008,028 700,000 10,795 8,718,823 Florida Bond 2,932,679 375,000 1,804 3,309,483 Maryland Bond 1,767,679 245,000 1,442 2,014,121 New Jersey Bond 2,007,679 250,000 9,839 2,267,518 New York Insured 6,008,028 400,000 16,080 6,424,108 New York Bond 2,457,679 240,000 3,312 2,700,991 New York Income II 4,508,028 425,000 2,240 4,935,268 Virginia Bond 1,347,679 165,000 4,362 1,517,041
Offering costs incurred in connection with the Trusts' offering of common shares have been charged against the proceeds from the initial common share offering of the common shares as follows: TRUST OFFERING COST TRUST OFFERING COST - ----- ------------- ----- ------------- Insured Municipal $765,000 Florida Bond $89,000 Municipal Bond 292,700 Maryland Bond 50,150 Municipal Income II 658,500 New Jersey Bond 57,500 California Insured 142,500 New York Insured 177,000 California Bond 90,050 New York Bond 70,700 California Income II 219,000 New York Income II 130,500 Florida Insured 246,000 Virginia Bond 35,150 On September 19, 2002, each of the Income II Trusts issued several series of preferred shares listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.
TRUST SERIES SHARES TRUST SERIES SHARES - ----- ------ ------ ----- ------ ------ Municipal Income II M7 2,055 California Income II T7 1,439 T7 2,056 R7 1,439 W7 2,055 New York Income II W7 1,786 R7 2,056
Underwriting discounts and offering costs incurred in connection with the preferred share offering have been charged to paid-in capital in excess of par of the common shares.
UNDERWRITING OFFERING UNDERWRITING OFFERING TRUST DISCOUNT COST TRUST DISCOUNT COST - ----- ------------ -------- ----- ------------ -------- Municipal Income II $2,055,500 $239,168 New York Income II $446,500 $120,782 California Income II 719,500 129,975
On December 11, 2002, the Insured Trusts issued several series of preferred shares listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.
TRUST SERIES SHARES TRUST SERIES SHARES - ----- ------ ------ ----- ------ ------ Insured Municipal M7 3,053 California Insured F7 1,860 R7 3,053 Florida Insured M7 3,040 F7 3,053 New York Insured R7 2,240
56 Underwriting discounts and offering costs incurred in connection with the preferred share offering have been charged to paid-in capital in excess of par of the common shares.
UNDERWRITING OFFERING UNDERWRITING OFFERING TRUST DISCOUNT COST TRUST DISCOUNT COST - ----- ------------ -------- ----- ------------ -------- Insured Municipal $2,289,750 $367,431 Florida Insured $760,000 $184,848 California Insured 465,000 144,518 New York Insured 560,000 151,970
As of August 31, 2003, the Bond Trusts had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.
TRUST SERIES SHARES TRUST SERIES SHARES - ----- ------ ------ ----- ------ ------ Municipal Bond T7 1,810 Maryland Bond R7 720 R7 1,810 New Jersey Bond M7 809 California Bond F7 1,199 New York Bond T7 968 Florida Bond W7 1,191 Virginia Bond R7 541
Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The dividend ranges on the preferred shares for each of the Trusts for the period ended August 31, 2003, were as follows:
TRUST LOW HIGH TRUST LOW HIGH - ----- ---- ---- ----- ---- ---- Insured Municipal 0.50% 1.70% Florida Bond 0.24% 1.68% Municipal Bond 0.40 3.69 Maryland Bond 0.51 2.80 Municipal Income II 0.65 1.75 New Jersey Bond 0.64 2.50 California Insured 0.50 1.20 New York Insured 0.70 1.50 California Bond 0.54 2.98 New York Bond 0.45 2.48 California Income II 0.40 1.73 New York Income II 0.80 1.75 Florida Insured 0.57 1.38 Virginia Bond 0.40 2.80
A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares would be less than 200%. The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated or unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust's Declaration of Trust, are not satisfied. The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the Investment Company Act of 1940, as amended, requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trust's subclassification as a closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company. NOTE 5. DIVIDENDS Subsequent to August 31, 2003, the Board of each Trust declared dividends from undistributed earnings per common share payable October 1, 2003, to shareholders of record on September 15, 2003. The per share common dividends declared were as follows: COMMON DIVIDEND COMMON DIVIDEND TRUST PER SHARE TRUST PER SHARE - ----- --------------- ----- --------------- Insured Municipal $0.078125 Florida Bond $0.077808 Municipal Bond 0.086375 Maryland Bond 0.071350 Municipal Income II 0.083750 New Jersey Bond 0.078582 California Insured 0.075000 New York Insured 0.075000 California Bond 0.079656 New York Bond 0.077099 California Income II 0.081250 New York Income II 0.078750 Florida Insured 0.075000 Virginia Bond 0.072428 57 The dividends declared on preferred shares for the period September 1, 2003 to September 30, 2003, for each of the Trusts were as follows: DIVIDENDS DIVIDENDS TRUST AND SERIES DECLARED TRUST AND SERIES DECLARED - ---------------- --------- ---------------- --------- Insured Municipal California Bond-F7 $18,213 M7 $64,235 California Income II R7 47,444 T7 20,578 F7 53,763 R7 24,981 Municipal Bond Florida Insured-M7 62,077 T7 21,792 Florida Bond-W7 19,592 R7 20,326 Maryland Bond-R7 11,736 Municipal Income II New Jersey Bond-M7 16,253 M7 37,175 New York Insured-R7 37,475 T7 32,094 New York Bond-T7 14,443 W7 33,106 New York Income II-W7 31,005 R7 35,322 Virginia Bond-R7 7,942 California Insured-F7 32,271 58 INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- To the Trustees and Shareholders of: BlackRock Municipal Bond Trust BlackRock California Municipal Bond Trust BlackRock Florida Municipal Bond Trust BlackRock Maryland Municipal Bond Trust BlackRock New Jersey Municipal Bond Trust BlackRock New York Municipal Bond Trust BlackRock Virginia Municipal Bond Trust (collectively the "Bond Trusts") BlackRock Municipal Income Trust II BlackRock California Municipal Income Trust II BlackRock New York Municipal Income Trust II (collectively the "Income II Trusts") BlackRock Insured Municipal Income Trust BlackRock California Insured Municipal Income Trust BlackRock Florida Insured Municipal Income Trust and BlackRock New York Insured Municipal Income Trust (collectively the "Insured Trusts") (collectively the "Trusts") We have audited the accompanying statements of assets and liabilities of the Trusts, including the portfolios of investments, as of August 31, 2003, and the related statements of operations, the statements of changes in net assets and financial highlights for the period then ended and the statements of changes in net assets and financial highlights for the period from April 30, 2002 (commencement of operations) through August 31, 2002, for the Bond Trusts, and the statements of changes in net assets and the financial highlights for the period from July 30, 2002 (commencement of operations) through August 31, 2002, for the Income II Trusts. These financial statements are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the Trusts as of August 31, 2003, the results of their operations, the changes in their net assets and the financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte + Touche LLP Boston, Massachusetts October 10, 2003 59 DIVIDEND REINVESTMENT PLANS - -------------------------------------------------------------------------------- Pursuant to each Trust's Dividend Reinvestment Plan (the "Plan"), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by EquiServe Trust Company, N.A. (the "Plan Agent") in the respective Trust's shares pursuant to the Plan. Shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent. The Plan Agent serves as agent for the shareholders in administering the Plan. After a Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants' accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust ("newly issued shares") or (ii) by purchase of outstanding shares on the open market, on the Trust's primary exchange or elsewhere ("open-market purchases"). If, on the dividend payment date, the net asset value per share ("NAV") is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as "market premium"), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant's account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as "market discount"), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. Participants in the Plan may withdraw from the Plan upon written notice to the Plan Agent and will receive certificates for whole Trust shares and a cash payment for any fraction of a Trust share. The Plan Agent's fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions. Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan, however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. All correspondence concerning the Plan should be directed to the Plan Agent at (800) 699-1BFM or 150 Royall Street, Canton, MA 02021. 60 TRUSTEES INFORMATION - --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------- INDEPENDENT TRUSTEES - --------------------------------------------------------------------------------------------------------------------------- Name, address, age Andrew F. Brimmer Richard E. Cavanagh Kent Dixon P.O. Box 4546 P.O. Box 4546 P.O. Box 4546 New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546 Age:77 Age: 57 Age: 66 - --------------------------------------------------------------------------------------------------------------------------- Current positions held with Lead Trustee Trustee Trustee the Trusts Audit Committee Chairman(2) Audit Committee Member Audit Committee Member(2) - --------------------------------------------------------------------------------------------------------------------------- Term of office and length 3 years(4)/ since inception 3 years(4)/ since inception 3 years(4)/ since inception of time served - --------------------------------------------------------------------------------------------------------------------------- Principal occupations President of Brimmer & President and Chief Consultant/Investor. Former during the past five years Company, Inc., a Executive Officer of The President and Chief Washington, D.C.-based Conference Board, Inc., a Executive Officer of Empire economic and financial leading global business Federal Savings Bank of consulting firm, also membership organization, America and Banc PLUS Wilmer D. Barrett Professor from 1995-present. Former Savings Association, former of Economics, University of Executive Dean of the John Chairman of the Board, Massachusetts - Amherst. F. Kennedy School of President and Chief Formerly member of the Government at Harvard Executive Officer of Board of Governors of the University from 1988-1995. Northeast Savings. Federal Reserve System. Acting Director, Harvard Former Chairman, District Center for Business and of Columbia Financial Government (1991-1993). Control Board. Formerly Partner (principal) of McKinsey & Company, Inc. (1980- 1988). Former Executive Director of Federal Cash Management, White House Office of Management and Budget (1977-1979). Co-author, THE WINNING PERFORMANCE (best selling management book published in 13 national editions). - --------------------------------------------------------------------------------------------------------------------------- Number of portfolios over- 48 48 48 seen within the fund com- plex - --------------------------------------------------------------------------------------------------------------------------- Other Directorships held Director of CarrAmerica Trustee: Airplanes Group, Former Director of ISFA outside of the fund Realty Corporation and Aircraft Finance Trust (the owner of INVEST, a complex Borg-Warner Automotive. (AFT) and Educational national securities Formerly Director of Testing Service (ETS). brokerage service designed Airborne Express, Director, Arch Chemicals, for banks and thrift BankAmerica Corporation Fremont Group and The institutions). (Bank of America), Bell Guardian Life Insurance South Corporation, College Company of America. Retirement Equities Fund (Trustee), Commodity Exchange, Inc. (Public Governor), Connecticut Mutual Life Insurance Company, E.I. du Pont de Nemours & Company, Equitable Life Assurance Society of the United States, Gannett Company, Mercedes-Benz of North America, MNC Financial Corporation (American Security Bank), NCM Capital Management, Navistar International Corporation, PHH Corp. and UAL Corporation (United Airlines). - --------------------------------------------------------------------------------------------------------------------------- For "Interested Director/ Trustee" Relationships, events or transactions by reason of which the Trustee is an interested person as defined in Section 2(a)(19)(1940 Act) - ---------------------------------------------------------------------------------------------------------------------------
(1) Interested Trustee as defined by Section 2(a)(19) of the Investment Company Act of 1940. (2) The Board of each Trust has determined that each Trust has two Audit Committee financial experts serving on its Audit Committee, Dr. Brimmer and Mr. Dixon, both of whom are independent for the purpose of the definition of Audit Committee financial expert as applicable to the Trusts. (3) Trustee since inception; appointed Chairman of the Board on August 22, 2002. (4) The Board is classified into three classes of which one class is elected annually. Each Trustee serves a three year term concurrent with the class from which he is elected. (5) Except during the period 10/31/02 through 11/11/02 for all of the Trusts. (6) Appointed Trustee on August 22, 2002, for the Bond Trusts and Income II Trusts. Trustee since inception for the Insured Trusts. 61
- ---------------------------------------------------------------------- ---------------------------------------------------- INDEPENDENT TRUSTEES (CONTINUED) INTERESTED TRUSTEES(1) - ---------------------------------------------------------------------- ---------------------------------------------------- Frank J. Fabozzi James Clayburn Walter F. Mondale Ralph L. Schlosstein Robert S. Kapito P.O. Box 4546 La Force, Jr. P.O. Box 4546 BlackRock,Inc. BlackRock,Inc. New York, NY P.O. Box 4546 New York, NY 40 East 52nd Street 40 East 52nd Street 10163-4546 New York, NY 10163-4546 10163-4546 New York, NY 10022 New York, NY 10022 Age: 55 Age: 74 Age: 75 Age: 52 Age: 46 - ---------------------------------------------------------------------- ---------------------------------------------------- Trustee Trustee Trustee Chairman of the President and Trustee Board(3) - ---------------------------------------------------------------------- ---------------------------------------------------- 3 years(4)/since 3 years(4)/since 3 years(4)/since 3 years(4)/since 3 years(4)/since August inception inception inception(5) inception 22, 2002(6) - ---------------------------------------------------------------------- ---------------------------------------------------- Consultant. Editor of Dean Emeritus of the Partner, Dorsey & Director since 1999 Vice Chairman of THE JOURNAL OF John E. Anderson Whitney, LLP., a law and President of BlackRock, Inc. Head of PORTFOLIO MANAGEMENT Graduate School of firm (December BlackRock, Inc. since the Portfolio Management and Frederick Frank Management, University 1996-present, its formation in 1998 Group. Also a member of Adjunct Professor of of California since September 1987-August and of BlackRock, the Management Committee, Finance at the School July 1, 1993. Acting 1993). Formerly U.S. Inc.'s predecessor the Investment Strategy of Management at Yale Dean of the School of Ambassador to Japan entities since 1988. Group, the Fixed Income University. Author Business, Hong Kong (1993-1996). Formerly Member of the and Global Operating and editor of several University of Science Vice President of the Management Committee Committees and the Equity books on fixed income and Technology United States, U.S. and Investment Investment Strategy portfolio management. 1990-1993. From 1978 Senator and Attorney Strategy Group of Group. Responsible for Visiting Professor of to September 1993, General of the State BlackRock, Inc. the portfolio management Finance and Dean of the John E. of Minnesota. 1984 Formerly, Managing of the Fixed Income, Accounting at the Anderson Graduate Democratic Nominee for Director of Lehman Domestic Equity and Sloan School of School of Management, President of the Brothers, Inc. and International Equity, Management, University of United States. Co-head of its Liquidity, and Massachusetts California. Mortgage and Savings Alternative Investment Institute of Institutions Group. Groups of BlackRock. Technology from 1986 Currently, Chairman Currently President and a to August 1992. and a Trustee of each Director/Trustee of each of the closed-end of the closed-end Trusts Trusts in which in which BlackRock BlackRock Advisors, Advisors, Inc. acts as Inc. acts as investment advisor. investment advisor. - ---------------------------------------------------------------------- ---------------------------------------------------- 48 48 48 48 48 - ---------------------------------------------------------------------- ---------------------------------------------------- Director, Guardian Payden & Rygel Chairman and President Chairman of the Hope and Mutual Funds Group Investment Trust, of the BlackRock Heroes Children's Cancer (18 portfolios). Provident Investment Provident Fund. President of the Counsel Funds, Institutional Funds Board of Directors of the Advisors Series Trust, (10 portfolios) and Periwinkle National Arena Pharmaceuticals, Director of several of Theatre for Young Inc. and CancerVax BlackRock's Audiences. Director of Corporation. alternative investment icruise.com, Corp. vehicles. Currently, a Member of the Visiting Board of Overseers of the John F. Kennedy School of Government at Harvard University, the Financial Institutions Center Board of the Wharton School of the University of Pennsylvania, a Trustee of Trinity School in New York City and a Trustee of New Visions for Public Education in New York City. Formerly, a Director of Pulte Corporation and a Member of Fannie Mae's Advisory Council. - ---------------------------------------------------------------------- ---------------------------------------------------- Director and President Vice Chairman of the of the Advisor. Advisor. - ---------------------------------------------------------------------- ----------------------------------------------------
62 ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- We are required by the Internal Revenue Code to advise you within 60 days of a Trust's tax year-end as to the Federal tax status of dividends paid by the Trusts during such tax year. Accordingly, during the tax year-ended September 30, 2003, all dividends paid by the Insured Trusts (the only Trusts with September 30th tax year-ends) were federally tax-exempt interest dividends. The Joint Annual Meeting of Shareholders was held on May 22, 2003, to elect Class I Trustees for each of the following Trusts to three year terms expiring in 2006. The election results were as follows:
RICHARD E. CAVANAGH JAMES CLAYBURN LA FORCE, JR. --------------------------- -------------------------------- TRUST VOTES FOR VOTES WITHHELD VOTES FOR VOTES WITHHELD - ----- --------- -------------- ------------- -------------- Insured Municipal 8,449 28 25,741,538 264,001 Municipal Bond 3,563 17 9,897,065 147,768 Municipal Income II 7,820 0 22,479,818 227,710 California Insured 1,847 0 5,113,547 104,558 California Bond 1,154 0 3,301,610 25,777 California Income II 2,792 0 7,865,205 72,316 Florida Insured 2,762 0 8,633,914 56,934 Florida Bond 1,170 1 3,257,604 21,668 Maryland Bond 720 0 1,951,649 24,243 New Jersey Bond 809 0 2,238,041 17,105 New York Insured 2,238 2 6,287,017 83,709 New York Bond 968 0 2,680,584 18,245 New York Income II 1,782 0 4,890,119 32,423 Virginia Bond 541 0 1,505,905 6,025
63 BlackRock Closed-End Funds Trustees Ralph L. Schlosstein, CHAIRMAN Andrew F. Brimmer Richard E. Cavanagh Kent Dixon Frank J. Fabozzi Robert S. Kapito James Clayburn La Force, Jr. Walter F. Mondale Officers Robert S. Kapito, PRESIDENT Henry Gabbay, TREASURER Anne Ackerley, VICE PRESIDENT Kevin M. Klingert, VICE PRESIDENT Richard M. Shea, VICE PRESIDENT/TAX James Kong, ASSISTANT TREASURER Vincent B. Tritto, SECRETARY Brian P. Kindelan, ASSISTANT SECRETARY Investment Advisor BlackRock Advisors, Inc. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM Sub-Advisor BlackRock Financial Management, Inc. 40 East 52nd Street New York, NY 10022 Custodian State Street Bank and Trust Company One Heritage Drive North Quincy, MA 02171 Transfer Agent EquiServe Trust Company, N.A. 150 Royall Street Canton, MA 02021 (800) 699-1BFM Auction Agent(1) Bank of New York 100 Church Street, 8th Floor New York, NY 10286 Auction Agent(2) Deutsche Bank Trust Company Americas 60 Wall Street, 27th Floor New York, NY 10005 Independent Accountants Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, NY 10036 Legal Counsel - Independent Trustees Debevoise & Plimpton 919 Third Avenue New York, NY 10022 - -------------- (1) For the Insured Trusts and Bond Trusts. (2) For the Income II Trusts. This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. BlackRock Closed-End Funds c/o BlackRock Advisors, Inc. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called "householding" and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 227-7BFM. The Trusts have adopted the Advisor's proxy voting policies and procedures to govern the voting of proxies relating to their voting securities. You may obtain a copy of these proxy voting procedures, without charge, by calling (800)699-1236. This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. [ BLACKROCK LOGO ] CEF-ANN-1 ITEM 2. CODE OF ETHICS. (a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. (b) Not applicable. (c) The Registrant has not amended its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. (d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. (e) Not applicable. (f) The Registrant's Code of Ethics is attached as an Exhibit hereto. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The Registrant's Board of Trustees has determined that it has two audit committee financial experts serving on its audit committee, each of whom is an "independent" Trustee: Dr. Andrew F. Brimmer and Mr. Kent Dixon. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable until annual reports for fiscal years ending after December 15, 2003. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable until annual reports for fiscal years ending on or after the Registrant's first annual shareholder meeting held after January 15, 2004 but to be included no later than October 31, 2004. ITEM 6. RESERVED. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The Registrant has delegated the voting of proxies relating to its voting securities to its investment advisor, BlackRock Advisors, Inc. (the "Advisor") and its sub-advisor, BlackRock Financial Management, Inc. (the "Sub-Advisor"). The Proxy Voting Policies and Procedures of the Advisor and Sub-Advisor (the "Proxy Voting Policies") are included as an Exhibit hereto. ITEM 8. RESERVED. ITEM 9. CONTROLS AND PROCEDURES. (a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the Registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely. (b) The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 10. EXHIBITS. (a)(1) Code of Ethics. (a)(2) Certifications of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (b) Certification of principal executive officer and principal financial officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002. (c) Proxy Voting Policies. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BlackRock New York Insured Municipal Income Trust By: /s/ Henry Gabbay --------------------------- Name: Henry Gabbay Title: Treasurer Date: October 29, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert S. Kapito --------------------------- Name: Robert S. Kapito Title: Principal Executive Officer Date: October 29, 2003 By: /s/ Henry Gabbay --------------------------- Name: Henry Gabbay Title: Principal Financial Officer Date: October 29, 2003 EX-99.CODE ETH 3 c29359_ex99code-eth.txt EXHIBIT 99.CODE.ETH JOINT CODE OF ETHICS FOR CHIEF EXECUTIVE AND SENIOR FINANCIAL OFFICERS OF THE BLACKROCK CLOSED-END FUNDS AS ADOPTED BY THE BOARDS OF TRUSTEES/DIRECTORS MAY 2003 Each BlackRock Closed-End Fund (each a "TRUST" and, collectively, the "TRUSTS")(1) is committed to conducting business in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate disclosure -- financial and otherwise -- in compliance with applicable law. This Code of Ethics, applicable to the Trust's Chief Executive Officer, President, Chief Financial Officer and Treasurer (or persons performing similar functions) (together, "SENIOR OFFICERS"), sets forth policies to guide you in the performance of your duties. As a Senior Officer, you must comply with applicable law. You also have a responsibility to conduct yourself in an honest and ethical manner. You have leadership responsibilities that include creating a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns. This Code of Ethics recognizes that the Senior Officers are subject to certain conflicts of interest inherent in the operation of investment companies, because the Senior Officers currently or may in the future serve as Senior Officers of each of the Trusts, as officers or employees of the Trust's investment advisor (the "ADVISOR") and/or affiliates of the Trust's investment advisor (collectively with the Advisor, "BLACKROCK") and as officers or trustees/directors of other registered investment companies and unregistered investment funds advised by BlackRock. This Code of Ethics also recognizes that certain laws and regulations applicable to, and certain policies and procedures adopted by, the Trust or BlackRock govern your conduct in connection with many of the conflict of interest situations that arise in connection with the operations of the Trust, including: - ---------- 1 This Joint Code of Ethics for Chief Executive and Senior Financial Officers has been adopted by the Board of Trustees/Directors for each Trust. Solely for the sake of clarity and simplicity, this Joint Code of Ethics has been drafted as if there is a single Trust, a single Governance Committee and a single Board of Trustees/Directors. The terms "Trustees," "Independent Trustees" and "Governance Committee" mean the Trustees, the Independent Trustees and the Governance Committee of each Trust, respectively, unless the context otherwise requires. The Trustees, the Independent Trustees and the Governance Committee of each Trust, however, shall act separately and in the best interests of its respective Trust. o the Investment Company Act of 1940, and the rules and regulation promulgated thereunder by the Securities and Exchange Commission (the "1940 ACT"); o the Investment Advisers Act of 1940, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission (the "ADVISERS ACT"); o the Code of Ethics adopted by the Trust and the other Trusts pursuant to Rule 17j-1(c) under the 1940 Act (collectively, the "TRUST'S 1940 ACT CODE OF ETHICS"); o one or more codes of ethics adopted by BlackRock that have been reviewed and approved by those trustees/directors (the "TRUSTEES") of the Trust that are not "interested persons" of the Trust (the "INDEPENDENT TRUSTEES") within the meaning of the 1940 Act (the "BLACKROCK'S 1940 ACT CODE OF ETHICS" and, together with the Trust's 1940 Act Code of Ethics, the "1940 ACT CODES OF Ethics"); o the policies and procedures adopted by the Trust and the other Trusts to address conflict of interest situations, such as procedures under Rule 10f-3 and Rule 17a-7 under the 1940 Act (collectively, the "TRUST POLICIES"); and o BlackRock's general policies and procedures to address, among other things, conflict of interest situations and related matters (collectively, the "BLACKROCK POLICIES"). The provisions of the 1940 Act, the Advisers Act, the 1940 Act Codes of Ethics, the Trust Policies and the BlackRock Policies are referred to herein collectively as the "ADDITIONAL CONFLICT RULES". This Code of Ethics is different from, and is intended to supplement, the Additional Conflict Rules. Accordingly, a violation of the Additional Conflict Rules by a Senior Officer is hereby deemed not to be a violation of this Code of Ethics, unless and until the Governance Committee of the Trustees (the "GOVERNANCE COMMITTEE") shall determine that any such violation of the Additional Conflict Rules is also a violation of this Code of Ethics. SENIOR OFFICERS SHOULD ACT HONESTLY AND CANDIDLY Each Senior Officer has a responsibility to the Trust to act with integrity. Integrity requires, among other things, being honest and candid. Deceit and subordination of principle are inconsistent with integrity. Each Senior Officer must: 2 o act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Additional Conflict Rules; o comply with the laws, rules and regulations that govern the conduct of the Trust's operations and report any suspected violations thereof in accordance with the section below entitled "Compliance With Code Of Ethics"; and o adhere to a high standard of business ethics. CONFLICTS OF INTEREST A conflict of interest for the purpose of this Code of Ethics occurs when your private interests interfere in any way, or even appear to interfere, with the interests of the Trust. Senior Officers are expected to use objective and unbiased standards when making decisions that affect the Trust, keeping in mind that Senior Officers are subject to certain inherent conflicts of interest because Senior Officers of a Trust also are or may be officers of other Trusts, BlackRock and other funds advised or serviced by BlackRock (as a result of which it is incumbent upon you to be familiar with and to seek to comply with the Additional Conflict Rules). You are required to conduct the business of the Trust in an honest and ethical manner, including the ethical handling of actual or apparent conflicts of interest between personal and business relationships. When making any investment, accepting any position or benefits, participating in any transaction or business arrangement or otherwise acting in a manner that creates or appears to create a conflict of interest with respect to the Trust where you are receiving a personal benefit, you should act in accordance with the letter and spirit of this Code of Ethics. If you are in doubt as to the application or interpretation of this Code of Ethics to you as a Senior Officer of the Trust, you should make full disclosure of all relevant facts and circumstances to the general counsel of BlackRock (the "GENERAL COUNSEL") and obtain the approval of the General Counsel prior to taking action. Some conflict of interest situations that should always be approved by the General Counsel, if material, include the following: o the receipt of any entertainment or non-nominal gift by the Senior Officer, or a member of his or her family, from any company with which the Trust has current or prospective business dealings (other than BlackRock), unless such entertainment or gift is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; 3 o any ownership interest in, or any consulting or employment relationship with, any of the Trust's service providers, other than BlackRock; or o a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Trust for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior Officer's employment by BlackRock, such as compensation or equity ownership. DISCLOSURES It is the policy of the Trust to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that the Trust files with, or submits to, the Securities and Exchange Commission or a national securities exchange and in all other public communications made by the Trust. As a Senior Officer, you are required to promote compliance with this policy and to abide by the Trust's standards, policies and procedures designed to promote compliance with this policy. Each Senior Officer must: o familiarize himself or herself with the disclosure requirements applicable to the Trust as well as the business and financial operations of the Trust; and o not knowingly misrepresent, or cause others to misrepresent, facts about the Trust to others, including to the Trustees, the Trust's independent auditors, the Trust's counsel, counsel to the Independent Trustees, governmental regulators or self-regulatory organizations. COMPLIANCE WITH CODE OF ETHICS If you know of or suspect a violation of this Code of Ethics or other laws, regulations, policies or procedures applicable to the Trust, you must report that information on a timely basis to the General Counsel or report it anonymously by following the "whistle blower" policies adopted by BlackRock from time to time. NO ONE WILL BE SUBJECT TO RETALIATION BECAUSE OF A GOOD FAITH REPORT OF A SUSPECTED VIOLATION. The Trust will follow these procedures in investigating and enforcing this Code of Ethics, and in reporting on this Code of Ethics: o the General Counsel will take all appropriate action to investigate any actual or potential violations reported to him or her; o violations and potential violations will be reported to the Governance Committee after such investigation; 4 o if the Governance Committee determines that a violation has occurred, it will take all appropriate disciplinary or preventive action; and o appropriate disciplinary or preventive action may include a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the Securities and Exchange Commission or other appropriate law enforcement authorities. WAIVERS OF CODE OF ETHICS Except as otherwise provided in this Code of Ethics, the General Counsel is responsible for applying this Code of Ethics to specific situations in which questions are presented to the General Counsel and has the authority to interpret this Code of Ethics in any particular situation. The General Counsel shall take all action he or she considers appropriate to investigate any actual or potential violations reported under this Code of Ethics. The General Counsel is authorized to consult, as appropriate, with the chair of the Governance Committee and with counsel to the Trust, BlackRock or the Independent Trustees, and is encouraged to do so. The Governance Committee is responsible for granting waivers of this Code of Ethics, as appropriate. Any changes to or waivers of this Code of Ethics will, to the extent required, be disclosed on Form N-CSR, or otherwise, as provided by Securities and Exchange Commission rules. RECORDKEEPING The Trust will maintain and preserve for a period of not less than six (6) years from the date an action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Governance Committee: o that provided the basis for any amendment or waiver to this Code of Ethics; and o relating to any violation of this Code of Ethics and sanctions imposed for such violation, together with a written record of the approval or action taken by the Governance Committee. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code of Ethics shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code of Ethics, such matters shall not be disclosed to anyone other than the Independent Trustees and their counsel, the Trust and its counsel, BlackRock and its counsel and any other advisors, consultants or counsel retained by the Trustees, the Independent Trustees or any committee of the Trustees. 5 AMENDMENTS This Code of Ethics may not be amended except in written form, which is specifically approved by a majority vote of the Trustees, including a majority of the Independent Trustees. NO RIGHTS CREATED This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern each of the Senior Officers in the conduct of the Trust's business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. 6 EX-99.CERT 4 c29359_ex99cert.txt Exhibit 99.Cert I, Robert Kapito, certify that: 1. I have reviewed this report on Form N-CSR of the BlackRock New York Insured Municipal Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 29, 2003 ---------------- /s/ Robert Kapito -------------------------- Robert Kapito Principal Executive Officer Exhibit 99.Cert I, Henry Gabbay, certify that: 1. I have reviewed this report on Form N-CSR of the BlackRock New York Insured Municipal Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 29, 2003 ---------------- /s/ Henry Gabbay -------------------------- Henry Gabbay Principal Financial Officer EX-99.906CERT 5 c29359_ex99906cert.txt Exhibit 99.906CERT SECTION 906 CERTIFICATION Pursuant to 18 U.S.C. ss. 1350, the undersigned officers of the BlackRock New York Insured Municipal Income Trust (the "Company"), hereby certifies, to the best of their knowledge, that the Company's Report on Form N-CSR for the fiscal year ended August 31, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: October 29, 2003 ---------------------------- /s/ Robert Kapito - ---------------------------------- Name: Robert Kapito Title: Principal Executive Officer /s/ Henry Gabbay - ---------------------------------- Name: Henry Gabbay Title: Principal Financial Officer EX-99.10C 6 c29359_ex9910c.txt Exhibit 99.10(c) PROXY VOTING POLICY ------------------- FOR BLACKROCK ADVISORS, INC. AND ITS AFFILIATED REGISTERED INVESTMENT ADVISERS INTRODUCTION This Proxy Voting Policy ("Policy") for BlackRock Advisors, Inc. and its affiliated registered investment advisers ("BlackRock") reflects our duty as a fiduciary under the Investment Advisers Act of 1940 (the "Advisers Act") to vote proxies in the best interests of our clients. In addition, the Department of Labor views the fiduciary act of managing ERISA plan assets to include the voting of proxies. Proxy voting decisions must be made solely in the best interests of the pension plan's participants and beneficiaries. The Department of Labor has interpreted this requirement as prohibiting a fiduciary from subordinating the retirement income interests of participants and beneficiaries to unrelated objectives. The guidelines in this Policy have been formulated to ensure decision-making consistent with these fiduciary responsibilities. Any general or specific proxy voting guidelines provided by an advisory client or its designated agent in writing will supercede the specific guidelines in this Policy. BlackRock will disclose to our advisory clients information about this Policy as well as disclose to our clients how they may obtain information on how we voted their proxies. Additionally, BlackRock will maintain proxy voting records for our advisory clients consistent with the Advisers Act. For those of our clients that are registered investment companies, BlackRock will disclose this Policy to the shareholders of such funds and make filings with the Securities and Exchange Commission and make available to fund shareholders the specific proxy votes that we cast in shareholder meetings of issuers of portfolio securities in accordance with the rules and regulations under the Investment Company Act of 1940. Registered investment companies that are advised by BlackRock as well as certain of our advisory clients may participate in securities lending programs, which may reduce or eliminate the amount of shares eligible for voting by BlackRock in accordance with this Policy if such shares are out on loan and cannot be recalled in time for the vote. Implicit in the initial decision to retain or invest in the security of a corporation is approval of its existing corporate ownership structure, its management, and its operations. Accordingly, proxy proposals that would change the existing status of a corporation will be reviewed carefully and supported only when it seems clear that the proposed changes are likely to benefit the corporation and its shareholders. Notwithstanding this favorable predisposition, management will be assessed on an ongoing basis both in terms of its business capability and its dedication to the shareholders to ensure that our continued confidence remains warranted. If it is determined that management is acting on its own behalf instead of for the well being of the corporation, we will vote to support shareholder proposals, unless other mitigating circumstances are present. Additionally, situations may arise that involve an actual or perceived conflict of interest. For example, we may manage assets of a pension plan of a company whose management is soliciting proxies, or a BlackRock employee involved with managing an account may have a close relative who serves as a director or executive of a company that is soliciting proxies regarding securities held in such account. In all cases, the manner in which we vote proxies must be based on our clients' best interests and not the product of a conflict. This Policy and its attendant recommendations attempt to generalize a complex subject. It should be clearly understood that specific fact situations, including differing voting practices in jurisdictions outside the United States, might warrant departure from these guidelines. In such instances, the relevant facts will be considered, and if a vote contrary to these guidelines is indicated it will be cast and the reasons therefor recorded in writing. Section I of the Policy describes proxy proposals that may be characterized as routine and lists examples of the types of proposals we would typically support. Section II of the Policy describes various types of non-routine proposals and provides general voting guidelines. These non-routine proposals are categorized as those involving: A. Social Issues, B. Financial/Corporate Issues, and C. Shareholder Rights. Finally, Section III of the Policy describes the procedures to be followed in casting a vote pursuant to these guidelines. 2 SECTION I ROUTINE MATTERS --------------- Routine proxy proposals, amendments, or resolutions are typically proposed by management and meet the following criteria: 1. They do not measurably change the structure, management control, or operation of the corporation. 2. They are consistent with industry standards as well as the corporate laws of the state of incorporation. VOTING RECOMMENDATION BlackRock will normally support the following routine proposals: 1. To increase authorized common shares. 2. To increase authorized preferred shares as long as there are not disproportionate voting rights per preferred share. 3. To elect or re-elect directors. 4. To appoint or elect auditors. 5. To approve indemnification of directors and limitation of directors' liability. 6. To establish compensation levels. 7. To establish employee stock purchase or ownership plans. 8. To set time and location of annual meeting. 3 SECTION II NON-ROUTINE PROPOSALS --------------------- A. SOCIAL ISSUES Proposals in this category involve issues of social conscience. They are typically proposed by shareholders who believe that the corporation's internally adopted policies are ill-advised or misguided. VOTING RECOMMENDATION If we have determined that management is generally socially responsible, we will generally vote AGAINST the following shareholder proposals: 1. To enforce restrictive energy policies. 2. To place arbitrary restrictions on military contracting. 3. To bar or place arbitrary restrictions on trade with other countries. 4. To restrict the marketing of controversial products. 5. To limit corporate political activities. 6. To bar or restrict charitable contributions. 7. To enforce a general policy regarding human rights based on arbitrary parameters. 8. To enforce a general policy regarding employment practices based on arbitrary parameters. 9. To enforce a general policy regarding animal rights based on arbitrary parameters. 10. To place arbitrary restrictions on environmental practices. B. FINANCIAL/CORPORATE ISSUES Proposals in this category are usually offered by management and seek to change a corporation's legal, business or financial structure. 4 VOTING RECOMMENDATION We will generally vote in favor of the following management proposals provided the position of current shareholders is preserved or enhanced: 1. To change the state of incorporation. 2. To approve mergers, acquisitions or dissolution. 3. To institute indenture changes. 4. To change capitalization. C. SHAREHOLDER RIGHTS Proposals in this category are made regularly both by management and shareholders. They can be generalized as involving issues that transfer or realign board or shareholder voting power. We typically would oppose any proposal aimed solely at thwarting potential takeover offers by requiring, for example, super-majority approval. At the same time, we believe stability and continuity promote profitability. The guidelines in this area seek to find a middle road, and they are no more than guidelines. Individual proposals may have to be carefully assessed in the context of their particular circumstances. VOTING RECOMMENDATION We will generally vote FOR the following management proposals: 1. To require majority approval of shareholders in acquisitions of a controlling share in the corporation. 2. To institute staggered board of directors. 3. To require shareholder approval of not more than 66 2/3% for a proposed amendment to the corporation's by-laws. 4. To eliminate cumulative voting. 5. To adopt anti-greenmail charter or by-law amendments or to otherwise restrict a company's ability to make greenmail payments. 5 9 6. To create a dividend reinvestment program. 7. To eliminate preemptive rights. 8. To eliminate any other plan or procedure designed primarily to discourage a takeover or other similar action (commonly known as a "poison pill"). We will generally vote AGAINST the following management proposals: 1. To require greater than 66 2/3% shareholder approval for a proposed amendment to the corporation's by-laws ("super-majority provisions"). 2. To require that an arbitrary fair price be offered to all shareholders that is derived from a fixed formula ("fair price amendments"). 3. To authorize a new class of common stock or preferred stock which may have more votes per share than the existing common stock. 4. To prohibit replacement of existing members of the board of directors. 5. To eliminate shareholder action by written consent without a shareholder meeting. 6. To allow only the board of directors to call a shareholder meeting or to propose amendments to the articles of incorporation. 7. To implement any other action or procedure designed primarily to discourage a takeover or other similar action (commonly known as a "poison pill"). 8. To limit the ability of shareholders to nominate directors. We will generally vote FOR the following shareholder proposals: 1. To rescind share purchases rights or require that they be submitted for shareholder approval, but only if the vote required for approval is not more than 66 2/3%. 2. To opt out of state anti-takeover laws deemed to be detrimental to the shareholder. 3. To change the state of incorporation for companies operating under the umbrella of anti-shareholder state corporation laws if another state is chosen with favorable laws in this and other areas. 6 4. To eliminate any other plan or procedure designed primarily to discourage a takeover or other similar action. 5. To permit shareholders to participate in formulating management's proxy and the opportunity to discuss and evaluate management's director nominees, and/or to nominate shareholder nominees to the board. 6. To require that the board's audit, compensation, and/or nominating committees be comprised exclusively of independent directors. 7. To adopt anti-greenmail charter or by-law amendments or otherwise restrict a company's ability to make greenmail payments. 8. To create a dividend reinvestment program. 9. To recommend that votes to "abstain" not be considered votes "cast" at an annual meeting or special meeting, unless required by state law. 10. To require that "golden parachutes" be submitted for shareholder ratification. We will generally vote AGAINST the following shareholder proposals: 1. To restore preemptive rights. 2. To restore cumulative voting. 3. To require annual election of directors or to specify tenure. 4. To eliminate a staggered board of directors. 5. To require confidential voting. 6. To require directors to own a minimum amount of company stock in order to qualify as a director or to remain on the board. 7. To dock director pay for failing to attend board meetings. 7 SECTION III VOTING PROCESS -------------- BlackRock has engaged a third-party service provider to assist us in the voting of proxies. These guidelines have been provided to this service provider, who then analyzes all proxy solicitations we receive for our clients and makes recommendations to us as to how, based upon our guidelines, the relevant votes should be cast. These recommendations are set out in a report that is provided to the relevant Portfolio Management Group team, who must approve the proxy vote in writing and return such written approval to the Operations Group. If any authorized member of a Portfolio Management Group team desires to vote in a manner that differs from the recommendations, the reason for such differing vote shall be noted in the written approval form. A copy of the written approval form is attached as an exhibit. The head of each relevant Portfolio Management Group team is responsible for making sure that proxies are voted in a timely manner. The Brokerage Allocation Committee shall receive regular reports of all proxy votes cast to review how proxies have been voted, including reviewing votes that differ from recommendations made by our third-party service provider and votes that may have involved a potential conflict of interest. The Committee shall also review these guidelines from time to time to determine their continued appropriateness and whether any changes to the guidelines or the proxy voting process should be made. IF THERE IS ANY POSSIBILITY THAT THE VOTE MAY INVOLVE A MATERIAL CONFLICT OF INTEREST BECAUSE, FOR EXAMPLE, THE ISSUER SOLICITING THE VOTE IS A BLACKROCK CLIENT OR THE MATTER BEING VOTED ON INVOLVES BLACKROCK, PNC OR ANY AFFILIATE (INCLUDING A PORTFOLIO MANAGEMENT GROUP EMPLOYEE) OF EITHER OF THEM, PRIOR TO APPROVING SUCH VOTE, THE BROKERAGE ALLOCATION COMMITTEE MUST BE CONSULTED AND THE MATTER DISCUSSED. The Committee, in consultation with the Legal and Compliance Department, shall determine whether the potential conflict is material and if so, the appropriate method to resolve such conflict, based on the particular facts and circumstances, the importance of the proxy issue, whether the Portfolio Management Group team is proposing a vote that differs from recommendations made by our third-party service provider with respect to the issue and the nature of the conflict, so as to ensure that the voting of the proxy is not affected by the potential conflict. If the conflict is determined not to be material, the relevant Portfolio Management Group team shall vote the proxy in accordance with this Policy. Determinations of the Committee with respect to votes involving material conflicts of interest shall be documented in writing and maintained for a period of at least six years. With respect to votes in connection with securities held on a particular record date but sold from a client account prior to the holding of the related meeting, BlackRock may take no action on proposals to be voted on in such meeting. With respect to voting proxies of non-U.S. companies, a number of logistical problems may arise that may have a detrimental effect on BlackRock's ability to vote such proxies in the best interests of our clients. These problems include, but are not limited to, (i) untimely and/or inadequate notice of shareholder meetings, (ii) restrictions on the ability of holders outside the issuer's jurisdiction of organization to exercise 8 votes, (iii) requirements to vote proxies in person, if not practicable, (iv) the imposition of restrictions on the sale of the securities for a period of time in proximity to the shareholder meeting, and (v) impracticable or inappropriate requirements to provide local agents with power of attorney to facilitate the voting instructions. Accordingly, BlackRock may determine not to vote proxies if it believes that the restrictions or other detriments associated with such vote outweigh the benefits that will be derived by voting on the company's proposal. * * * * * Any questions regarding this Policy may be directed to the General Counsel of BlackRock. Approved: October 21, 1998 Revised: May 27, 2003 9 -----END PRIVACY-ENHANCED MESSAGE-----