N-CSR 1 c31069_ncsr.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: 811-21181 ------------------------ BlackRock Municipal 2020 Term Trust -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 100 BELLEVUE PARKWAY, WILMINGTON, DE 19809 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Robert S. Kapito, President BlackRock Municipal 2020 Term Trust 40 EAST 52ND STREET, NEW YORK, NY 10022 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 302 797-2162 ----------------------------- Date of fiscal year end: DECEMBER 31, 2003 -------------------------------------------------------- Date of reporting period: DECEMBER 31, 2003 ------------------------------------------------------- ITEM 1. REPORTS TO SHAREHOLDERS 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 DECEMBER 31, 2003 ================================================================================ BlackRock Insured Municipal 2008 Term Trust (BRM) BlackRock Insured Municipal Term Trust (BMT) BlackRock Municipal 2018 Term Trust (BPK) BlackRock Municipal 2020 Term Trust (BKK) BlackRock Municipal Target Term Trust (BMN) BlackRock Strategic Municipal Trust (BSD) BlackRock California Insured Municipal 2008 Term Trust (BFC) BlackRock California Municipal 2018 Term Trust (BJZ) BlackRock Florida Insured Municipal 2008 Term Trust (BRF) BlackRock Florida Municipal 2020 Term Trust (BFO) BlackRock New York Insured Municipal 2008 Term Trust (BLN) BlackRock New York Municipal 2018 Term Trust (BLH) BlackRock Pennsylvania Strategic Municipal Trust (BPS) NOT FDIC INSURED MAY LOSE VALUE [LOGO] NO BANK GUARANTEE BLACKROCK TABLE OF CONTENTS Letter to Shareholders .................................................... 1 Trust Summaries ........................................................... 2 Portfolios of Investments ................................................. 15 Financial Statements Statements of Assets and Liabilities ................................... 53 Statements of Operations ............................................... 55 Statements of Changes in Net Assets .................................... 57 Financial Highlights ...................................................... 62 Notes to Financial Statements ............................................. 75 Independent Auditors' Report .............................................. 80 Directors/Trustees Information ............................................ 81 Dividend Reinvestment Plans ............................................... 83 Additional Information .................................................... 84 -------------------------------------------------------------------------------- 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 December 31, 2003 Dear Shareholder: We are pleased to report that during the annual period, the Trusts provided monthly income, as well as the opportunity to invest in various portfolios of municipal securities. This report contains the Trusts' 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 December 31, 2003.
-------------------------------------------------------------------------------------------------------------------------- TAX- CLOSING CURRENT EQUIVALENT MARKET TRUST (TICKER) YIELD(1) YIELD(1) PRICE NAV -------------------------------------------------------------------------------------------------------------------------- BlackRock Insured Municipal 2008 Term Trust (BRM) 4.60% 7.08% $17.27 $17.38 -------------------------------------------------------------------------------------------------------------------------- BlackRock Insured Municipal Term Trust (BMT) 5.20 8.00 11.06 11.40 -------------------------------------------------------------------------------------------------------------------------- BlackRock Municipal 2018 Term Trust (BPK) 5.43 8.36 14.36 15.53 -------------------------------------------------------------------------------------------------------------------------- BlackRock Municipal 2020 Term Trust (BKK) 6.25 9.62 15.00 14.51 -------------------------------------------------------------------------------------------------------------------------- BlackRock Municipal Target Term Trust (BMN) 5.25 8.08 10.95 10.97 -------------------------------------------------------------------------------------------------------------------------- BlackRock Strategic Municipal Trust (BSD) 6.50 10.00 14.69 15.91 -------------------------------------------------------------------------------------------------------------------------- BlackRock California Insured Municipal 2008 Term Trust (BFC) 4.52 6.95 17.09 17.19 -------------------------------------------------------------------------------------------------------------------------- BlackRock California Municipal 2018 Term Trust (BJZ) 5.48 8.43 13.42 14.77 -------------------------------------------------------------------------------------------------------------------------- BlackRock Florida Insured Municipal 2008 Term Trust (BRF) 4.63 7.13 16.19 16.43 -------------------------------------------------------------------------------------------------------------------------- BlackRock Florida Municipal 2020 Term Trust (BFO) 5.85 9.00 15.39 14.50 -------------------------------------------------------------------------------------------------------------------------- BlackRock New York Insured Municipal 2008 Term Trust (BLN) 4.42 6.80 16.96 17.13 -------------------------------------------------------------------------------------------------------------------------- BlackRock New York Municipal 2018 Term Trust (BLH) 5.00 7.69 14.70 15.53 -------------------------------------------------------------------------------------------------------------------------- BlackRock Pennsylvania Strategic Municipal Trust (BPS) 5.87 9.03 15.12 16.09 --------------------------------------------------------------------------------------------------------------------------
(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 December 31, 2003, BlackRock managed approximately $18 billion in municipal bonds, including six open-end and 37 closed-end municipal bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world's largest institutional investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly owned subsidiary of BlackRock. On behalf of BlackRock, we thank you for your continued trust and assure you that we remain committed to excellence in managing your assets. Sincerely, /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 DECEMBER 31, 2003 BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST (BRM) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BRM -------------------------------------------------------------------------------- Initial Offering Date: September 18, 1992 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2008 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $17.27 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $17.38 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($17.27):(1) 4.60% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.06625 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.79500 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 36% -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ----------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $17.27 $16.58 4.16% $17.80 $16.39 -------------------------------------------------------------------------------- NAV $17.38 $17.62 (1.36)% $18.31 $17.21 -------------------------------------------------------------------------------- The following chart shows the asset composition of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- City, County & State 29% 30% -------------------------------------------------------------------------------- Power 21 22 -------------------------------------------------------------------------------- Education 14 11 -------------------------------------------------------------------------------- Tax Revenue 9 8 -------------------------------------------------------------------------------- Transportation 7 10 -------------------------------------------------------------------------------- Industrial & Pollution Control 6 2 -------------------------------------------------------------------------------- Lease Revenue 5 4 -------------------------------------------------------------------------------- Hospital 4 7 -------------------------------------------------------------------------------- Water & Sewer 4 4 -------------------------------------------------------------------------------- Housing 1 2 -------------------------------------------------------------------------------- As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by Standard & Poor's ("S&P"), Moody's Investors Service ("Moody's") or Fitch Ratings ("Fitch"). 2 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK INSURED MUNICIPAL TERM TRUST (BMT) TRUST INFORMATION ------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BMT ------------------------------------------------------------------------------- Initial Offering Date: February 20, 1992 ------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2010 ------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $11.06 ------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $11.40 ------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($11.06):(1) 5.20% ------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.047917 ------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.575004 ------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 37% ------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ---------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $11.06 $10.94 1.10% $11.71 $10.40 -------------------------------------------------------------------------------- NAV $11.40 $11.29 0.97% $11.90 $10.91 -------------------------------------------------------------------------------- The following chart shows the asset composition of the Trust's long-term investments: SECTOR BREAKDOWN ------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 ------------------------------------------------------------------------------- City, County & State 35% 34% ------------------------------------------------------------------------------- Education 15 14 ------------------------------------------------------------------------------- Water & Sewer 14 13 ------------------------------------------------------------------------------- Power 12 15 ------------------------------------------------------------------------------- Hospital 10 11 ------------------------------------------------------------------------------- Lease Revenue 6 4 ------------------------------------------------------------------------------- Transportation 6 4 ------------------------------------------------------------------------------- Tax Revenue 2 3 ------------------------------------------------------------------------------- Housing -- 2 ------------------------------------------------------------------------------- As of December 31, 2003, 99.5% of all long-term investments had ratings of AAA/Aaa by S&P, Moody's or Fitch and the remaining 0.5% was rated A+. 3 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK MUNICIPAL 2018 TERM TRUST (BPK) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BPK -------------------------------------------------------------------------------- Initial Offering Date: October 26, 2001 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2018 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $14.36 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $15.53 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($14.36):(1) 5.43% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.065 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.780 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 36% -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: --------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $14.36 $13.43 6.92% $14.91 $13.17 -------------------------------------------------------------------------------- NAV $15.53 $14.66 5.93% $15.55 $14.16 -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- Industrial & Pollution Control 23% 25% -------------------------------------------------------------------------------- Hospital 21 18 -------------------------------------------------------------------------------- City, County & State 12 8 -------------------------------------------------------------------------------- Tobacco 12 12 -------------------------------------------------------------------------------- Housing 10 12 -------------------------------------------------------------------------------- Power 6 7 -------------------------------------------------------------------------------- Lease Revenue 3 4 -------------------------------------------------------------------------------- Education 4 4 -------------------------------------------------------------------------------- Transportation 4 3 -------------------------------------------------------------------------------- Tax Revenue 1 1 -------------------------------------------------------------------------------- Other 4 6 -------------------------------------------------------------------------------- CREDIT BREAKDOWN(4) -------------------------------------------------------------------------------- CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- AAA/Aaa 15% 21% -------------------------------------------------------------------------------- AA/Aa 5 4 -------------------------------------------------------------------------------- A 22 37 -------------------------------------------------------------------------------- BBB/Baa 40 24 -------------------------------------------------------------------------------- BB/Ba 2 4 -------------------------------------------------------------------------------- B 4 2 -------------------------------------------------------------------------------- Not Rated(5) 12 8 -------------------------------------------------------------------------------- ---------- (4) Using the higher of S&P's, Moody's or Fitch's rating. (5) The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of December 31, 2003, the market value of these securities was $18,920,780 representing 5.0% of the Trust's long-term investments. 4 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK MUNICIPAL 2020 TERM TRUST (BKK) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BKK -------------------------------------------------------------------------------- Initial Offering Date: September 30, 2003 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2020 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $15.00 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $14.51 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($15.00):(1) 6.25% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.078125 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.937500 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(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 Trust's market price and NAV: ------------------------------------ 12/31/03 HIGH LOW -------------------------------------------------------------------------------- Market Price $15.00 $15.03 $14.57 -------------------------------------------------------------------------------- NAV $14.51 $14.53 $14.13 -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 -------------------------------------------------------------------- City, County & State 26% -------------------------------------------------------------------- Hospitals 15 -------------------------------------------------------------------- Lease Revenue 14 -------------------------------------------------------------------- Industrial & Pollution Control 13 -------------------------------------------------------------------- Tobacco 9 -------------------------------------------------------------------- Education 6 -------------------------------------------------------------------- Power 6 -------------------------------------------------------------------- Tax Revenue 6 -------------------------------------------------------------------- Transportation 3 -------------------------------------------------------------------- Housing 2 -------------------------------------------------------------------- CREDIT BREAKDOWN(4) -------------------------------------------------------------------- CREDIT RATING DECEMBER 31, 2003 -------------------------------------------------------------------- AAA/Aaa 22% -------------------------------------------------------------------- AA/Aa 11 -------------------------------------------------------------------- A 18 -------------------------------------------------------------------- BBB/Baa 34 -------------------------------------------------------------------- BB/Ba 1 -------------------------------------------------------------------- B 5 -------------------------------------------------------------------- Not Rated 9 -------------------------------------------------------------------- ---------- (4) Using the higher of S&P's, Moody's or Fitch's rating. 5 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK MUNICIPAL TARGET TERM TRUST (BMN) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on the New York Stock Exchange: BMN -------------------------------------------------------------------------------- Initial Offering Date: September 27, 1991 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2006 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $10.95 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $10.97 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($10.95):(1) 5.25% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.047917 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.575004 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(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: ---------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $10.95 $11.01 (0.54)% $11.30 $10.75 -------------------------------------------------------------------------------- NAV $10.97 $11.16 (1.70)% $11.40 $10.88 -------------------------------------------------------------------------------- The following chart shows the asset composition of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- City, County & State 39% 38% -------------------------------------------------------------------------------- Power 13 13 -------------------------------------------------------------------------------- Transportation 11 9 -------------------------------------------------------------------------------- Education 10 9 -------------------------------------------------------------------------------- Lease Revenue 7 6 -------------------------------------------------------------------------------- Water & Sewer 7 10 -------------------------------------------------------------------------------- Housing 5 5 -------------------------------------------------------------------------------- Hospital 4 6 -------------------------------------------------------------------------------- Tax Revenue 3 3 -------------------------------------------------------------------------------- Industrial & Pollution Control 1 1 -------------------------------------------------------------------------------- As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by S&P, Moody's or Fitch. 6 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK STRATEGIC MUNICIPAL TRUST (BSD) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BSD -------------------------------------------------------------------------------- Initial Offering Date: August 25, 1999 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $14.69 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $15.91 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($14.69):(1) 6.50% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.079585 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.955020 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 35% -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) 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: --------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $14.69 $13.78 6.60% $15.10 $13.25 -------------------------------------------------------------------------------- NAV $15.91 $15.01 6.00% $16.10 $14.51 -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- Hospital 19% 17% -------------------------------------------------------------------------------- Industrial & Pollution Control 16 17 -------------------------------------------------------------------------------- City, County & State 11 13 -------------------------------------------------------------------------------- Tax Revenue 9 10 -------------------------------------------------------------------------------- Education 9 9 -------------------------------------------------------------------------------- Transportation 8 8 -------------------------------------------------------------------------------- Power 8 9 -------------------------------------------------------------------------------- Housing 5 5 -------------------------------------------------------------------------------- Water & Sewer 4 4 -------------------------------------------------------------------------------- Lease Revenue 4 -- -------------------------------------------------------------------------------- Tobacco 3 4 -------------------------------------------------------------------------------- Other 4 4 CREDIT BREAKDOWN(4) -------------------------------------------------------------------------------- CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- AAA/Aaa 43% 40% -------------------------------------------------------------------------------- AA/Aa 10 16 -------------------------------------------------------------------------------- A 12 12 -------------------------------------------------------------------------------- BBB/Baa 15 10 -------------------------------------------------------------------------------- BB/Ba 7 13 -------------------------------------------------------------------------------- B 7 3 -------------------------------------------------------------------------------- Not Rated(5) 6 6 -------------------------------------------------------------------------------- ---------- (4) Using the higher of S&P's, Moody's or Fitch's rating. (5) The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of December 31, 2003, the market value of these securities was $6,508,720 representing 3.7% of the Trust's long-term investments. 7 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST (BFC) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BFC -------------------------------------------------------------------------------- Initial Offering Date: September 18, 1992 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2008 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $17.09 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $17.19 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($17.09):(1) 4.52% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.064375 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.772500 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 37% -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: --------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $17.09 $16.44 3.95% $17.09 $16.02 -------------------------------------------------------------------------------- NAV $17.19 $17.34 (0.87)% $18.03 $16.75 -------------------------------------------------------------------------------- The following chart shows the asset composition of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- City, County & State 22% 32% -------------------------------------------------------------------------------- Power 18 18 -------------------------------------------------------------------------------- Lease Revenue 19 13 -------------------------------------------------------------------------------- Education 11 8 -------------------------------------------------------------------------------- Water & Sewer 10 7 -------------------------------------------------------------------------------- Tax Revenue 8 6 -------------------------------------------------------------------------------- Resource Recovery 5 1 -------------------------------------------------------------------------------- Transportation 4 9 -------------------------------------------------------------------------------- Hospital 3 3 -------------------------------------------------------------------------------- Industrial & Pollution Control -- 2 -------------------------------------------------------------------------------- Housing -- 1 -------------------------------------------------------------------------------- As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by S&P, Moody's or Fitch. 8 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST (BJZ) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BJZ -------------------------------------------------------------------------------- Initial Offering Date: October 26, 2001 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2018 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $13.42 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $14.77 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($13.42):(1) 5.48% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.06125 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.73500 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 37% -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: --------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW ------------------------------------------------------------------------------- Market Price $13.42 $13.40 0.15% $14.45 $12.87 ------------------------------------------------------------------------------- NAV $14.77 $14.59 1.23% $15.15 $13.55 ------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- Transportation 19% 17% -------------------------------------------------------------------------------- City, County & State 18 23 -------------------------------------------------------------------------------- Lease Revenue 15 15 -------------------------------------------------------------------------------- Tobacco 11 16 -------------------------------------------------------------------------------- Hospital 10 5 -------------------------------------------------------------------------------- Housing 7 7 -------------------------------------------------------------------------------- Education 5 5 -------------------------------------------------------------------------------- Power 5 3 -------------------------------------------------------------------------------- Industrial & Pollution Control 2 2 -------------------------------------------------------------------------------- Water & Sewer 1 -- -------------------------------------------------------------------------------- Tax Revenue -- 1 -------------------------------------------------------------------------------- Other 7 6 -------------------------------------------------------------------------------- CREDIT BREAKDOWN(4) -------------------------------------------------------------------------------- CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- AAA/Aaa 33% 34% -------------------------------------------------------------------------------- AA/Aa 4 4 -------------------------------------------------------------------------------- A 25 45 -------------------------------------------------------------------------------- BBB/Baa 28 10 -------------------------------------------------------------------------------- Not Rated(5) 10 7 -------------------------------------------------------------------------------- ---------- (4) Using the higher of S&P's, Moody's or Fitch's rating. (5) The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of December 31, 2003, the market value of these securities was $12,685,095 representing 9.0% of the Trust's long-term investments. 9 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST (BRF) TRUST INFORMATION ------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BRF ------------------------------------------------------------------------------- Initial Offering Date: September 18, 1992 ------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2008 ------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $16.19 ------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $16.43 ------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($16.19):(1) 4.63% ------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.0625 ------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.7500 ------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 37% ------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ----------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $16.19 $15.91 1.76% $16.66 $15.48 -------------------------------------------------------------------------------- NAV $16.43 $16.41 0.12% $17.24 $16.10 -------------------------------------------------------------------------------- The following chart shows the asset composition of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- Tax Revenue 33% 29% -------------------------------------------------------------------------------- Education 16 16 -------------------------------------------------------------------------------- Power 14 11 -------------------------------------------------------------------------------- Lease Revenue 11 11 -------------------------------------------------------------------------------- City, County & State 10 16 -------------------------------------------------------------------------------- Water & Sewer 7 7 -------------------------------------------------------------------------------- Transportation 6 3 -------------------------------------------------------------------------------- Resource Recovery 3 3 -------------------------------------------------------------------------------- Housing -- 3 -------------------------------------------------------------------------------- Other -- 1 -------------------------------------------------------------------------------- As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by S&P, Moody's or Fitch. 10 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUST (BFO) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BFO -------------------------------------------------------------------------------- Initial Offering Date: September 30, 2003 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2020 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $15.39 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $14.50 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($15.39):(1) 5.85% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.075 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.900 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(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 Trust's market price and NAV: ------------------------------------ 12/31/03 HIGH LOW ------------------------------------------------------------------------ Market Price $15.39 $15.56 $14.82 ------------------------------------------------------------------------ NAV $14.50 $14.57 $14.25 ------------------------------------------------------------------------ The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 -------------------------------------------------------------------- City, County & State 31% -------------------------------------------------------------------- Water & Sewer 21 -------------------------------------------------------------------- Tobacco 11 -------------------------------------------------------------------- Power 11 -------------------------------------------------------------------- Hospitals 10 -------------------------------------------------------------------- Industrial & Pollution Control 6 -------------------------------------------------------------------- Tax Revenue 6 -------------------------------------------------------------------- Transportation 3 -------------------------------------------------------------------- Lease Revenue 1 -------------------------------------------------------------------- CREDIT BREAKDOWN(4) -------------------------------------------------------------------- CREDIT RATING DECEMBER 31, 2003 -------------------------------------------------------------------- AAA/Aaa 50% -------------------------------------------------------------------- AA/Aa 1 -------------------------------------------------------------------- A 5 -------------------------------------------------------------------- BBB/Baa 17 -------------------------------------------------------------------- Not Rated(5) 27 -------------------------------------------------------------------- (4) Using the higher of S&P's, Moody's or Fitch's rating. (5) The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of December 31, 2003, the market value of these securities was $2,097,600 representing 2.0% of the Trust's long-term investments. 11 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST (BLN) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BLN -------------------------------------------------------------------------------- Initial Offering Date: September 18, 1992 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2008 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $16.96 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $17.13 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($16.96):(1) 4.42% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.0625 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.7500 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 36% -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ---------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $16.96 $16.22 4.56% $17.15 $15.85 -------------------------------------------------------------------------------- NAV $17.13 $17.09 0.23% $17.81 $16.65 -------------------------------------------------------------------------------- The following chart shows the asset composition of the Trust's long-term investments: SECTOR BREAKDOWN ------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 ------------------------------------------------------------------------------- Transportation 27% 27% ------------------------------------------------------------------------------- Education 19 18 ------------------------------------------------------------------------------- City, County & State 16 17 ------------------------------------------------------------------------------- Water & Sewer 11 11 ------------------------------------------------------------------------------- Hospital 10 11 ------------------------------------------------------------------------------- Tax Revenue 6 4 ------------------------------------------------------------------------------- Power 5 5 ------------------------------------------------------------------------------- Housing 3 4 ------------------------------------------------------------------------------- Lease Revenue 3 3 ------------------------------------------------------------------------------- As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by S&P, Moody's or Fitch. 12 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST (BLH) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BLH -------------------------------------------------------------------------------- Initial Offering Date: October 26, 2001 -------------------------------------------------------------------------------- Termination Date (on or about): December 31, 2018 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $14.70 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $15.53 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($14.70):(1) 5.00% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.06125 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.73500 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 36% -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ----------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $14.70 $13.46 9.21% $15.00 $13.23 -------------------------------------------------------------------------------- NAV $15.53 $15.11 2.78% $15.79 $14.22 -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- Education 22% 21% -------------------------------------------------------------------------------- Hospital 17 19 -------------------------------------------------------------------------------- City, County & State 11 11 -------------------------------------------------------------------------------- Transportation 11 14 -------------------------------------------------------------------------------- Tobacco 10 11 -------------------------------------------------------------------------------- Lease Revenue 7 7 -------------------------------------------------------------------------------- Industrial & Pollution Control 6 -- -------------------------------------------------------------------------------- Tax Revenue 6 6 -------------------------------------------------------------------------------- Housing 4 5 -------------------------------------------------------------------------------- Power 1 1 -------------------------------------------------------------------------------- Other 5 5 -------------------------------------------------------------------------------- CREDIT BREAKDOWN(4) -------------------------------------------------------------------------------- CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- AAA/Aaa 23% 25% -------------------------------------------------------------------------------- AA/Aa 37 40 -------------------------------------------------------------------------------- A 19 24 -------------------------------------------------------------------------------- BBB/Baa 13 3 -------------------------------------------------------------------------------- B -- 3 -------------------------------------------------------------------------------- CCC/Caa 3 -- -------------------------------------------------------------------------------- Not Rated(5) 5 5 -------------------------------------------------------------------------------- ---------- (4) Using the higher of S&P's, Moody's or Fitch's rating. (5) The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. 13 TRUST SUMMARIES DECEMBER 31, 2003 BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST (BPS) TRUST INFORMATION -------------------------------------------------------------------------------- Symbol on American Stock Exchange: BPS -------------------------------------------------------------------------------- Initial Offering Date: August 25, 1999 -------------------------------------------------------------------------------- Closing Market Price as of 12/31/03: $15.12 -------------------------------------------------------------------------------- Net Asset Value as of 12/31/03: $16.09 -------------------------------------------------------------------------------- Yield on Closing Market Price as of 12/31/03 ($15.12):(1) 5.87% -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.073965 -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.887580 -------------------------------------------------------------------------------- Leverage as of 12/31/03:(3) 35% -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) 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: ----------------------------------------------------------------- 12/31/03 12/31/02 CHANGE HIGH LOW -------------------------------------------------------------------------------- Market Price $15.12 $14.33 5.51% $15.58 $13.74 -------------------------------------------------------------------------------- NAV $16.09 $15.61 3.07% $16.57 $15.31 -------------------------------------------------------------------------------- The following charts show the asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN -------------------------------------------------------------------------------- SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- Education 21% 20% -------------------------------------------------------------------------------- Hospital 20 18 -------------------------------------------------------------------------------- Transportation 17 16 -------------------------------------------------------------------------------- Housing 12 12 -------------------------------------------------------------------------------- Water & Sewer 7 12 -------------------------------------------------------------------------------- City, County & State 5 4 -------------------------------------------------------------------------------- Lease Revenue 5 5 -------------------------------------------------------------------------------- Industrial & Pollution Control 4 4 -------------------------------------------------------------------------------- Other 9 9 -------------------------------------------------------------------------------- CREDIT BREAKDOWN(4) -------------------------------------------------------------------------------- CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002 -------------------------------------------------------------------------------- AAA/Aaa 52% 54% -------------------------------------------------------------------------------- AA/Aa 14 14 -------------------------------------------------------------------------------- A 7 6 -------------------------------------------------------------------------------- BBB/Baa 10 10 -------------------------------------------------------------------------------- BB/Ba 5 5 -------------------------------------------------------------------------------- Not Rated(5) 12 11 -------------------------------------------------------------------------------- ---------- (4) Using the higher of S&P's, Moody's or Fitch's rating. (5) The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of December 31, 2003, the market value of these securities was $4,322,000 representing 9.5% of the Trust's long-term investments. 14 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST (BRM)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--155.1% ALABAMA--2.1% AAA $ 2,410 Auburn Univ., 5.00%, 4/01/09, AMBAC ....................................... No Opt. Call $ 2,682,089 AAA 6,555 Birmingham Jefferson Civic Ctr. Auth., Ser. A, 4.25%, 1/01/09, FSA ........ No Opt. Call 7,049,509 ------------ 9,731,598 ------------ ALASKA--0.9% AAA 4,000 Anchorage, GO, Ser. B, 3.75%, 7/01/09, MBIA ............................... No Opt. Call 4,195,320 ------------ ARIZONA--1.9% AAA 4,000 Chandler, GO, Zero Coupon, 7/01/08, FGIC .................................. No Opt. Call 3,549,440 AAA 1,000 Phoenix Str. & Hwy., 4.25%, 7/01/09, FGIC ................................. No Opt. Call 1,081,010 AAA 4,200 Pima Cnty. Str. & Hwy., 4.125%, 7/01/09, FGIC ............................. 07/08 @ 101 4,496,142 ------------ 9,126,592 ------------ CALIFORNIA--2.6% California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, AAA 5,000 3.125%, 5/01/08, FSA .................................................... No Opt. Call 5,160,250 AAA 5,000 3.375%, 5/01/09, MBIA ................................................... No Opt. Call 5,197,600 AAA 1,890 California Hlth. Facs. Fin. Auth., Marin Gen. Hosp., Ser. A, 5.75%, 8/01/09, FSA ............................................................ 01/04 @ 102 1,933,980 ------------ 12,291,830 ------------ COLORADO--2.4% AAA 2,000 E-470 Pub. Hwy. Auth., Ser. B, Zero Coupon, 9/01/11, MBIA ................. No Opt. Call 1,499,160 AAA 1,000 El Paso Cnty., COP, Detention Fac. Proj., Ser. B, 3.20%, 12/01/08, AMBAC .. No Opt. Call 1,032,720 AAA 6,965 Regl. Transp. Dist., COP, Transp. Vehicles Proj., Ser. A, 5.00%, 6/01/08, MBIA ........................................................... 06/07 @ 101 7,680,027 AAA 1,000 Thornton, COP, 3.25%, 12/01/08, AMBAC ..................................... No Opt. Call 1,035,010 ------------ 11,246,917 ------------ DELAWARE--0.1% AAA 650 Delaware River & Bay Auth., 3.25%, 1/01/09, MBIA .......................... No Opt. Call 669,130 ------------ DISTRICT OF COLUMBIA--3.6% Dist. of Columbia, GO, AAA 195 Ser. B, 5.50%, 6/01/09, FSA ............................................. ETM 224,388 AAA 2,605 Ser. B, 5.50%, 6/01/09, FSA ............................................. No Opt. Call 2,954,852 AAA 10,000 Ser. B-1, 5.50%, 6/01/08, AMBAC ......................................... No Opt. Call 11,226,200 AAA 2,750 Ser. E, 5.875%, 6/01/08, MBIA ........................................... ETM 2,825,873 ------------ 17,231,313 ------------ FLORIDA--4.6% AAA 2,280 Broward Cnty. Sch. Brd., COP, Ser. B, 4.25%, 7/01/09, FSA ................. No Opt. Call 2,465,911 AAA 13,890 Florida Dept. of Env. Protection Presvtn., Ser. B, 5.00%, 7/01/09, MBIA ... No Opt. Call 15,574,302 AAA 1,300 Palm Beach, Restoration Proj., Ser. A, 5.00%, 1/01/09, FSA ................ No Opt. Call 1,450,488 AAA 2,080 Tampa Wtr. & Swr., 5.50%, 10/01/08, FSA ................................... No Opt. Call 2,365,355 ------------ 21,856,056 ------------ GEORGIA--3.5% AAA 5,000 Georgia, GO, Ser. E, 5.25%, 2/01/10 ....................................... No Opt. Call 5,685,000 AAA 10,000 Monroe Cnty., PCR, Pwr. Co. Plant Vogtle Proj., 4.20%, 1/01/12, AMBAC ..... No Opt. Call 10,700,300 ------------ 16,385,300 ------------ HAWAII--3.7% Hawaii, GO, FSA, AAA 6,510 Ser. CY, 4.00%, 2/01/09 ................................................. No Opt. Call 6,941,613 AAA 8,045 Ser. CZ, 3.25%, 7/01/09 ................................................. No Opt. Call 8,271,547 AAA 1,880 Honolulu City and Cnty., Ser. A, 5.00%, 3/01/09, MBIA ..................... No Opt. Call 2,096,745 ------------ 17,309,905 ------------ ILLINOIS--21.4% AAA 14,205 Chicago O'Hare Intl. Arpt., Ser. A, 6.25%, 1/01/08, MBIA .................. 01/05 @ 102 15,110,853 Chicago Park Dist., Parking Rev., GO, AAA 3,290 Ser. A, 3.00%, 1/01/08, FGIC ............................................ No Opt. Call 3,375,968 AAA 1,750 Ser. A, 3.50%, 1/01/09, FGIC ............................................ No Opt. Call 1,817,690 AAA 1,000 Ser. C, 3.00%, 1/01/09, AMBAC ........................................... No Opt. Call 1,015,460
See Notes to Financial Statements. 15
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== ILLINOIS (CONTINUED) AAA $ 2,930 Chicago Proj. & Refunding, Ser. A, 5.00%, 1/01/09, AMBAC .................. No Opt. Call $ 3,247,407 AAA 3,105 Chicago Pub. Bldg., Ser. A, Zero Coupon, 1/01/07, MBIA .................... ETM 2,906,032 Chicago Sch. Fin. Auth., GO, Ser. A, FGIC, AAA 13,000 6.25%, 6/01/07 .......................................................... 01/04 @ 101.5 13,239,590 AAA 9,150 6.25%, 6/01/09 .......................................................... 01/04 @ 101.5 9,318,634 Cook Cnty. High Sch., GO, AAA 5,980 J. Sterling Morton Twnshp., Zero Coupon, 12/01/09, FGIC ................. No Opt. Call 4,944,862 AAA 2,000 Arlington Heights, 4.50%, 12/01/08, FSA ................................. No Opt. Call 2,181,920 AAA 8,985 Du Page Cnty. Forest Presvtn. Dist., Zero Coupon, 11/01/08 ................ No Opt. Call 7,798,531 Illinois, GO, Ser. 1, MBIA, AAA 6,750 3.50%, 7/01/08 .......................................................... No Opt. Call 7,052,602 AAA 5,000 3.75%, 7/01/09 .......................................................... No Opt. Call 5,267,600 AAA 13,000 Illinois Dev. Fin. Auth., Gas Sply., 3.05%, 2/01/33, AMBAC ................ No Opt. Call 13,221,910 AAA 1,455 Kane & Du Page Cntys. Sch. Dist., GO, Ser. A, 3.75%, 1/01/09, FSA ......... No Opt. Call 1,528,172 Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., FGIC, AAA 8,385 Zero Coupon, 6/15/08 .................................................... ETM 7,469,526 AAA 215 Zero Coupon, 6/15/08 .................................................... No Opt. Call 189,088 AAA 1,570 Ser. A, Zero Coupon, 6/15/08 ............................................ ETM 1,398,587 ------------ 101,084,432 ------------ INDIANA--1.5% Indiana Hlth. Fac. Fin. Auth., Hosp. Rev. & Impvt., Ancilla Sys. Inc., MBIA, AAA 3,860 Ser. A, 6.25%, 7/01/08 .................................................. 01/04 @ 101 3,958,006 AAA 2,965 Ser. B, 6.25%, 7/01/08 .................................................. 01/04 @ 101 3,040,281 ------------ 6,998,287 ------------ KANSAS--0.2% AAA 1,000 Kansas Dev. Fin. Auth., Pub. Wtr. Sply., 4.00%, 4/01/09, AMBAC ............ No Opt. Call 1,064,820 ------------ KENTUCKY--0.7% AAA 3,890 Owensboro Elec. Lt. & Pwr., Ser. B, Zero Coupon, 1/01/09, AMBAC ........... No Opt. Call 3,341,821 ------------ LOUISIANA--1.3% AAA 5,770 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. A, 3.50%, 5/15/09, MBIA ........................................................... No Opt. Call 5,971,085 ------------ MASSACHUSETTS--1.1% AAA 4,465(3) Chelsea Sch. Proj. Loan, 6.00%, 6/15/04, AMBAC ............................ N/A 4,651,994 AAA 565 Massachusetts Hsg. Fin. Agcy. Hsg. Projs., Ser. A, 5.95%, 10/01/08, AMBAC . 01/04 @ 102 572,198 ------------ 5,224,192 ------------ MICHIGAN--6.4% AAA 1,665 Detroit, GO, 3.50%, 4/01/09, MBIA ......................................... No Opt. Call 1,738,276 AAA 6,315 Detroit City Sch. Dist., GO, Sch. Bldg. & Site Impvt., Ser. A, 4.00%, 5/01/09, FGIC ............................................................. No Opt. Call 6,753,261 Lake Orion, Cmnty. Sch. Dist., AMBAC, AAA 3,290(3) 6.60%, 5/01/05 .......................................................... N/A 3,558,300 AAA 3,285(3) 6.70%, 5/01/05 .......................................................... N/A 3,557,162 AAA 3,000 Michigan Trunk Line, Ser. A, 4.125%, 11/01/08, FSA ........................ No Opt. Call 3,228,960 AAA 2,535 Washtenaw Cmnty. Coll., 4.00%, 4/01/09, MBIA .............................. No Opt. Call 2,714,706 AAA 2,695 West Ottawa Pub. Sch. Dist., GO, Ser. B, 3.50%, 5/01/09, FGIC ............. No Opt. Call 2,822,285 AAA 2,000 Western Twnshps. Util. Auth. Sewage Disp. Sys., 5.00%, 1/01/09, FGIC ...... No Opt. Call 2,228,540 AAA 3,400 Wyandotte Elec., 6.25%, 10/01/08, MBIA .................................... No Opt. Call 3,769,002 ------------ 30,370,492 ------------ MISSISSIPPI--0.5% Aaa 2,175 De Soto Cnty. Sch. Dist., GO, 3.25%, 2/01/09, FSA ......................... No Opt. Call 2,248,428 ------------ NEVADA--5.2% AAA 16,270 Clark Cnty. Sch. Dist, Ser. A, 4.00%, 6/01/09, FGIC ....................... No Opt. Call 17,373,594 AAA 2,245 Las Vegas Clark Cnty. Library Dist., 4.75%, 2/01/09, FGIC ................. No Opt. Call 2,467,771 Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC, AAA 2,085 Zero Coupon, 1/01/09 .................................................... No Opt. Call 1,773,668 AAA 3,585 Zero Coupon, 1/01/10 .................................................... No Opt. Call 2,909,873 ------------ 24,524,906 ------------ NEW JERSEY--7.9% Monmouth Cnty. Impvt. Auth., Gov't. Loan, AAA 1,220 3.10%, 4/15/09, AMBAC ................................................... No Opt. Call 1,252,586 AAA 1,000 5.00%, 12/01/08, FSA .................................................... No Opt. Call 1,117,820
See Notes to Financial Statements. 16
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== NEW JERSEY (CONTINUED) New Jersey Econ. Dev. Auth., Ser. A, MBIA, AAA 1,220 Econ. Recovery Fund, 4.50%, 3/15/09 ..................................... No Opt. Call $ 1,331,569 AAA $30,275(3) Mkt. Transp. Fac. Rev., 5.80%, 7/01/04 .................................. N/A 31,580,458 AAA 1,750 New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. C, 5.25%, 12/15/08, AMBAC ........................................................... No Opt. Call 1,969,328 ------------ 37,251,761 ------------ NEW MEXICO--1.1% AAA 2,030 Farmington Util. Sys., Ser. A, 3.50%, 5/15/09, FSA ........................ No Opt. Call 2,121,350 AAA 3,285 New Mexico Fin. Auth., Pub. Proj., Ser. A, 3.80%, 6/01/08, MBIA ........... No Opt. Call 3,118,664 ------------ 5,240,014 ------------ NEW YORK--14.7% AAA 2,000 Erie Cnty., Public Impvt., Ser. A, 4.50%, 3/15/09, FGIC ................... No Opt. Call 2,191,060 AAA 15,915 New York, GO, Ser. F, 5.25%, 9/15/09, MBIA ................................ 09/08 @ 101 17,811,909 New York City, GO, MBIA, AAA 5,000 Ser. E, 6.125%, 8/01/06 ................................................. No Opt. Call 5,524,600 AAA 15,500 Ser. E, 6.20%, 8/01/07 .................................................. No Opt. Call 17,577,000 AAA 5,000 Ser. G, 5.75%, 2/01/08 .................................................. 02/06 @ 101.5 5,457,650 AAA 4,250 New York City Hlth. & Hosp. Corp., Hlth. Sys. Svcs., Ser. A, 3.50%, 2/15/09, AMBAC ............................................................ No Opt. Call 4,407,887 New York Env. Fac. Corp., PCR, Ser. D, AAA 7,080(3) 6.50%, 11/15/04 ......................................................... N/A 7,549,051 AAA 1,110 6.50%, 5/15/07 .......................................................... 11/04 @ 102 1,180,240 AAA 3,395 New York Thruway Auth., Svc. Contract Rev., Local Hwy. & Brdg., Ser. A, 5.40%, 1/01/09, MBIA ............................................ 01/05 @ 102 3,588,583 AAA 4,000 Port Auth. of NY & NJ, Ser. 129, 2.875%, 11/01/08, FSA .................... No Opt. Call 4,093,760 ------------ 69,381,740 ------------ NORTH CAROLINA--8.4% AAA 1,000(3) Cumberland Cnty., COP, Civic Ctr. Proj., Ser. A, 6.375%, 12/01/04, AMBAC .. N/A 1,067,520 No. Carolina Eastn. Mun. Pwr. Agcy., Sys. Rev., Ser. B, AAA 13,500 6.125%, 1/01/09, FGIC ................................................... No Opt. Call 15,715,620 AAA 5,000 7.00%, 1/01/08, CAPMAC .................................................. No Opt. Call 5,875,550 AAA 14,675 7.25%, 1/01/07, CAPMAC .................................................. No Opt. Call 16,879,038 ------------ 39,537,728 ------------ OHIO--1.2% AAA 2,410(3) Cleveland, GO, 6.40%, 11/15/04, MBIA ...................................... N/A 2,567,614 Ohio Bldg. Auth., Ser. A, AAA 1,000(3) Juvenile Correctional Proj., 6.50%, 10/01/04, AMBAC ..................... N/A 1,060,070 AAA 2,000 Workers Comp. Facs., 5.00%, 4/01/09, FGIC ............................... No Opt. Call 2,239,300 ------------ 5,866,984 ------------ OREGON--1.9% AAA 1,285 Lane Cnty. Sch. Dist., No. 4, 3.00%, 1/01/09, FSA ......................... No Opt. Call 1,315,159 Oregon Dept. of Admin. Svcs., FSA, AAA 2,905 COP, 5.00%, 11/01/08 .................................................... No Opt. Call 3,201,310 AAA 2,255 Lottery Rev., Ser. C, 3.125%, 4/01/09 ................................... No Opt. Call 2,318,659 AAA 2,000 Washington & Clackamas Cntys. Sch. Dist., GO, 3.75%, 6/15/08, MBIA ........ No Opt. Call 2,122,740 ------------ 8,957,868 ------------ PENNSYLVANIA--12.1% Aaa 1,460 Bensalem Twp. Sch. Dist., GO, 3.25%, 8/15/09, FGIC ........................ No Opt. Call 1,501,990 AAA 1,500 Bristol Twnshp. Sch. Dist., 4.25%, 2/15/09, FGIC .......................... No Opt. Call 1,618,005 Dauphin Cnty. Gen. Auth., HAPSCO-Western Pennsylvania Hosp. Proj., MBIA, AAA 8,480 Ser. A, 6.25%, 7/01/08 .................................................. 01/04 @ 101 8,587,272 AAA 4,290 Ser. B, 6.25%, 7/01/08 .................................................. ETM 4,710,334 AAA 3,500 Indiana Cnty. Indl. Dev. Auth., PCR, Elec. & Gas Corp., Ser. A, 6.00%, 6/01/06, MBIA ........................................................... No Opt. Call 3,854,550 AAA 16,250 Lehigh Cnty. Indl. Dev. Auth., PCR, 3.125%, 11/01/08, AMBAC ............... No Opt. Call 16,755,050 Pennsylvania Dept. of Gen. Svcs., COP, FSA, AAA 2,075 4.50%, 5/01/08 .......................................................... No Opt. Call 2,258,140 AAA 2,120 4.50%, 11/01/08 ......................................................... No Opt. Call 2,317,754 AAA 2,165 4.50%, 5/01/09 .......................................................... No Opt. Call 2,368,726 AAA 2,220 4.50%, 11/01/09 ......................................................... No Opt. Call 2,434,785 AAA 3,175 Philadelphia, GO, 4.10%, 9/15/08, FSA ..................................... No Opt. Call 3,407,632 AAA 3,125 Pittsburgh Pub. Parking Auth., Parking Rev., 3.25%, 12/01/08, AMBAC ....... No Opt. Call 3,241,750
See Notes to Financial Statements. 17
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== PENNSYLVANIA (CONTINUED) AAA $ 3,955 West Chester Area Sch. Dist., GO, Ser. AA, 3.65%, 1/15/09, MBIA ........... 07/07 @ 100 $ 4,122,494 ------------ 57,178,482 ------------ SOUTH CAROLINA--0.8% AAA 2,020 Chester Cnty. Sch. Dist., 3.25%, 2/01/09, FSA ............................. No Opt. Call 2,093,063 AAA 1,705 Lexington Cnty. Sch. Dist. 1, COP, 3.50%, 3/01/09, AMBAC .................. No Opt. Call 1,788,153 ------------ 3,881,216 ------------ TENNESSEE--0.2% AAA 1,000 Clarksville Wtr., Swr & Gas Rev., 4.30%, 2/01/09, FSA ..................... No Opt. Call 1,080,470 ------------ TEXAS--24.1% AAA 5,380 Austin, GO, Pub. Impvt., 3.50%, 9/01/08, FSA .............................. No Opt. Call 5,641,898 Austin Util. Sys., AAA 11,515 Ser. A, Zero Coupon, 11/15/08, MBIA ..................................... No Opt. Call 10,021,504 AAA 5,000 Ser. A, Zero Coupon, 11/15/09, AMBAC .................................... No Opt. Call 4,162,000 AAA 5,000 Ser. A, Zero Coupon, 11/15/09, MBIA ..................................... No Opt. Call 4,162,000 AAA 5,000 6.625%, 11/15/08, AMBAC ................................................. No Opt. Call 5,941,700 Coppell Indpt. Sch. Dist., MBIA, AAA 1,430 6.10%, 8/15/09 .......................................................... ETM 1,690,246 AAA 620 6.10%, 8/15/09 .......................................................... 02/04 @ 100 623,143 AAA 2,500 Dallas Wtrwks. & Swr. Sys., 3.50%, 4/01/09, FSA ........................... No Opt. Call 2,603,800 AAA 2,000 Houston, Pub. Impvt., Ser. A-1, 5.00%, 3/01/09, MBIA ...................... No Opt. Call 2,232,640 AAA 4,390 Houston Indpt. Sch. Dist., Zero Coupon, 8/15/09, AMBAC .................... No Opt. Call 3,682,727 Lower Colorado River Auth., AAA 2,010 3.50%, 5/15/09, MBIA .................................................... No Opt. Call 2,095,325 AAA 2,690 5.25%, 5/15/09, FSA ..................................................... No Opt. Call 3,038,086 AAA 1,650 Lubbock Cnty., 3.50%, 2/15/09, FGIC ....................................... No Opt. Call 1,722,534 AAA 1,500 North Texas Tollway Auth., Ser. C, 5.00%, 1/01/09, FSA .................... No Opt. Call 1,663,965 AAA 6,000 San Antonio Elec. & Gas, Ser. B, Zero Coupon, 2/01/10, FGIC ............... ETM 4,894,560 AAA 9,050 Tarrant Regl. Wtr. Dist., Impvt., 3.50%, 3/01/09, FSA ..................... No Opt. Call 9,420,055 Texas Mun. Pwr. Agcy., AAA 820 Zero Coupon, 9/01/08, AMBAC ............................................. ETM 722,805 AAA 14,180 Zero Coupon, 9/01/08, AMBAC ............................................. No Opt. Call 12,412,889 AAA 875 Zero Coupon, 9/01/09, AMBAC ............................................. ETM 739,445 AAA 15,300 Zero Coupon, 9/01/09, AMBAC ............................................. No Opt. Call 12,817,422 AAA 7,000 5.00%, 9/01/10, FGIC .................................................... 09/04 @ 100 7,164,010 Texas Pub. Fin. Auth., AAA 2,270 3.50%, 2/01/09, FGIC .................................................... No Opt. Call 2,361,390 AAA 3,000 Ser. A, 5.50%, 2/01/09, AMBAC ........................................... 02/08 @ 101 3,378,210 AAA 5,900 Ser. B, 6.25%, 2/01/09, AMBAC ........................................... No Opt. Call 6,903,000 AAA 1,825 Williamson Cnty., GO, Ser. B, 5.00%, 2/15/09, FSA ......................... No Opt. Call 2,035,550 AAA 2,275 Ysleta Indpt. Sch. Dist., GO, Zero Coupon, 8/15/08 ........................ No Opt. Call 1,994,015 ------------ 114,124,919 ------------ UTAH--3.6% Intermountain Pwr. Agcy., Sply., Ser. B, MBIA, AAA 2,215 6.00%, 7/01/07 .......................................................... ETM 2,521,534 AAA 1,285 6.00%, 7/01/07 .......................................................... No Opt. Call 1,455,391 AAA 1,550(3) Salt Lake Cnty. Mun. Bldg. Auth., Ser. A, 6.05%, 10/01/04, MBIA ........... N/A 1,622,617 AAA 10,300(3) Utah, GO, Ser. F, 5.00%, 7/01/07 .......................................... N/A 11,379,440 ------------ 16,978,982 ------------ WASHINGTON--10.3% AAA 1,250 Clark Cnty. Pub. Util. Dist., No. 1 Elec. Rev., 5.00%, 1/01/09, MBIA ...... No Opt. Call 1,386,637 King Cnty., GO, AAA 3,060 Pub. Transp. Sales Tax, 3.50%, 12/01/08, FSA ............................ No Opt. Call 3,202,259 AAA 12,850 Ser. D, 5.55%, 12/01/08, MBIA ........................................... 12/07 @ 102 14,619,574 AAA 5,710 Seattle Impvt. Ltd. Tax, 4.00%, 7/01/08, FSA .............................. No Opt. Call 6,099,251 Washington Hlth. Care Fac. Auth., Catholic Hlth. Initiatives, Ser. A, MBIA, AAA 1,010 5.30%, 12/01/08 ......................................................... No Opt. Call 1,135,462 AAA 1,000 5.40%, 12/01/10 ......................................................... 06/10 @ 101 1,142,710 AAA 2,045 Washington Motor Vehicle Fuel Tax, GO, 4.00%, 7/01/09, MBIA ............... No Opt. Call 2,172,547 Washington Pub. Pwr. Sply., AAA 11,000 Ser. A, 5.80%, 7/01/07, FSA ............................................. No Opt. Call 12,365,210 AAA 5,550 Nuclear Proj. No. 3, Zero Coupon, 7/01/07, MBIA ......................... No Opt. Call 5,051,166 AAA 2,000 Nuclear Proj. No. 3, Zero Coupon, 7/01/08, MBIA ......................... No Opt. Call 1,745,860 ------------ 48,920,676 ------------
See Notes to Financial Statements. 18
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== WEST VIRGINIA--1.4% AAA $ 1,550 West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., Ser. A, 4.25%, 6/01/08, MBIA .................................................... No Opt. Call $ 1,669,862 West Virginia Higher Ed. Policy Comm. Rev., Ser. A, MBIA, AAA 2,455 State College Fac., 5.00%, 4/01/09 ...................................... No Opt. Call 2,735,974 AAA 2,135 Univ. Facs., 5.00%, 4/01/09 ............................................. No Opt. Call 2,379,351 ------------ 6,785,187 ------------ WISCONSIN--3.1% Wisconsin, GO, AAA 7,705 Ser. A, 4.00%, 5/01/09, FGIC ............................................ No Opt. Call 8,214,763 AAA 6,080 Ser. C, 4.00%, 5/01/09, MBIA ............................................ No Opt. Call 6,482,253 ------------ 14,697,016 ------------ WYOMING--0.6% Albany Cnty. Impvts. Statutory Trust, COP, MBIA, AAA 1,270 3.75%, 1/15/09 .......................................................... No Opt. Call 1,335,557 AAA 1,395 3.75%, 7/15/09 .......................................................... No Opt. Call 1,466,494 ------------ 2,802,051 ------------ TOTAL LONG-TERM INVESTMENTS (COST $ 680,127,340) .......................... 733,557,518 ------------ SHORT-TERM INVESTMENTS--0.1% VIRGINIA--0.1% A1+ 400(4) Loudoun Cnty. Indl. Dev. Auth., Howard Hughes Med., Ser. C, 1.30%, 1/02/04, FRDD (cost $400,000) ........................................... N/A 400,000 ------------ TOTAL INVESTMENTS--155.2% (COST $680,527,340) ............................. $733,957,518 Other assets in excess of liabilities--2.1% ............................... 9,907,797 Preferred shares at redemption value, including dividends payable--(57.3)% (271,080,787) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $472,784,528 ============
(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. 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 95.1% of the Trust's total investments. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation CAPMAC -- Capital Markets Assurance Company COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company FRDD -- Floating Rate Daily Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue -------------------------------------------------------------------------------- See Notes to Financial Statements. 19 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK INSURED MUNICIPAL TERM TRUST (BMT)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--155.0% ALABAMA--0.9% AAA $ 1,410 Alabama Fed. Hwy. Fin. Auth., Grant Antic., Ser. A, 4.50%, 3/01/11, MBIA .. No Opt. Call $ 1,539,635 AAA 1,000 Birmingham Jefferson Civic Ctr. Auth., Ser. A, 4.375%, 1/01/11, FSA ....... No Opt. Call 1,082,200 ------------ 2,621,835 ------------ ALASKA--7.8% Anchorage, GO, Ser. B, AAA 14,345 4.125%, 7/01/11, MBIA ................................................... No Opt. Call 15,194,368 AAA 6,000 4.625%, 7/01/10, FGIC ................................................... No Opt. Call 6,567,000 AAA 1,260 Univ. of Alaska, Ser. K, 3.75%, 10/01/10, FGIC ............................ No Opt. Call 1,316,410 ------------ 23,077,778 ------------ ARIZONA--4.4% AAA 1,000 Arizona St. Univ., 4.20%, 7/01/11, FGIC ................................... No Opt. Call 1,073,120 AAA 1,030 Mesa, GO, Ser. A, 3.75%, 7/01/10, FGIC .................................... No Opt. Call 1,082,633 AAA 6,340 Pima Cnty. Str. & Hwy., 4.25%, 7/01/11, FGIC .............................. 07/08 @ 101 6,684,959 AAA 4,180 Univ. of Arizona Med. Ctr., Hosp. Rev., 6.25%, 7/01/10, MBIA .............. 01/04 @ 101 4,232,877 ------------ 13,073,589 ------------ ARKANSAS--0.5% AAA 1,500 Little Rock, Cap. Impvt., 4.00%, 4/01/11, FSA ............................. No Opt. Call 1,586,970 ------------ CALIFORNIA--8.3% California, GO, FGIC, AAA 4,355(3) 6.80%, 11/01/04 ......................................................... N/A 4,645,043 AAA 145 6.80%, 11/01/10 ......................................................... 11/04 @ 102 154,196 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, AAA 5,000 3.60%, 5/01/10, AMBAC ................................................... No Opt. Call 5,185,600 AAA 3,500 3.70%, 5/01/11, MBIA .................................................... No Opt. Call 3,613,540 AAA 6,100 Contra Costa Trans. Auth., Sales Tax Rev., 6.50%, 3/01/09, FGIC ........... ETM 7,107,903 AAA 3,065 Los Angeles Cnty., Asset Leasing Corp., 6.05%, 12/01/10, AMBAC ............ No Opt. Call 3,654,767 ------------ 24,361,049 ------------ COLORADO--1.2% AAA 3,245 Weld Cnty. Sch. Dist. No. 6, 3.75%, 12/01/10, FSA ......................... No Opt. Call 3,418,543 ------------ DELAWARE--0.4% AAA 1,015 Delaware River & Bay Auth., 3.75%, 1/01/11, MBIA .......................... No Opt. Call 1,060,086 ------------ DISTRICT OF COLUMBIA--3.9% AAA 10,000 Dist. of Columbia, GO, Ser. B, 5.50%, 6/01/11, FSA ........................ No Opt. Call 11,457,000 ------------ FLORIDA--0.9% AAA 2,320 Tampa Wtr. & Swr., 5.50%, 10/01/10, FSA ................................... No Opt. Call 2,682,152 ------------ GEORGIA--1.7% AAA 5,000 Henry Cnty. Hosp. Auth., Ser. B, 6.375%, 7/01/09, FGIC .................... 01/04 @ 101 5,063,550 ------------ HAWAII--4.5% AAA 11,080 Hawaii, GO, Ser. CN, 5.25%, 3/01/11, FGIC ................................. 03/07 @ 102 12,252,818 AAA 1,000 Univ. of Hawaii, Univ. Sys., 3.875%, 7/15/10, FGIC ........................ No Opt. Call 1,057,550 ------------ 13,310,368 ------------ ILLINOIS--16.1% Chicago, GO, Ser. A, AAA 4,000 4.375%, 1/01/11, AMBAC .................................................. No Opt. Call 4,326,200 AAA 1,790 5.00%, 1/01/11, MBIA .................................................... No Opt. Call 2,005,892 Chicago Park Dist., Parking Rev., GO, Ser. A, FGIC, AAA 3,120 3.50%, 1/01/10 .......................................................... No Opt. Call 3,230,448 AAA 3,695 4.00%, 1/01/11 .......................................................... No Opt. Call 3,909,716 AAA 1,000 Du Page & Cook Cntys. Sch. Dist., GO, 4.50%, 1/01/11, FGIC ................ No Opt. Call 1,089,360 AAA 1,750 Du Page & Will Cntys. Sch. Dist., GO, 4.25%, 12/30/10, FGIC ............... No Opt. Call 1,892,730 Du Page Cnty. Forest Presvtn. Dist., AAA 5,000 Zero Coupon, 11/01/10 ................................................... No Opt. Call 3,932,300 AAA 11,965 Zero Coupon, 11/01/11 ................................................... No Opt. Call 8,947,188
See Notes to Financial Statements. 20
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== ILLINOIS (CONTINUED) Illinois, GO, Ser. 1, AAA $ 1,500 4.50%, 2/01/11, FGIC .................................................... No Opt. Call $ 1,632,480 AAA 2,000 4.50%, 4/01/11, FSA ..................................................... No Opt. Call 2,174,960 AAA 4,000 5.25%, 2/01/11, FGIC .................................................... No Opt. Call 4,542,560 AAA 5,000 Illinois Edl. Fac. Auth., 5.70%, 7/01/13, FGIC ............................ 01/04 @ 102 5,128,150 AAA 2,265 Kane & Du Page Cntys. Sch. Dist., GO, Ser. A, 4.00%, 1/01/11, FSA ......... No Opt. Call 2,396,619 AAA 1,025 Orland Park, GO, Ser. A, 3.50%, 12/01/10, FGIC ............................ No Opt. Call 1,059,973 AAA 1,075 Rockford Sch. Dist., GO, 4.30%, 2/01/11, FGIC ............................. No Opt. Call 1,158,506 ------------ 47,427,082 ------------ INDIANA--3.8% AAA 2,635 Indiana Mun. Pwr. Agcy., Pwr. Sply. Sys., Ser. A, 4.50%, 1/01/11, AMBAC ... No Opt. Call 2,867,012 Indianapolis Loc. Pub. Impvt. Bond Bank, Wtr. Wtrwks. Proj., Ser. A, MBIA, AAA 2,085 4.25%, 7/01/10 .......................................................... No Opt. Call 2,242,605 AAA 2,815 4.375%, 1/01/11 ......................................................... No Opt. Call 3,040,876 AAA 2,950 4.375%, 7/01/11 ......................................................... No Opt. Call 3,181,545 ------------ 11,332,038 ------------ KANSAS--0.7% Kansas Dev. Fin. Auth., Pub. Wtr. Sply., AMBAC, AAA 1,025 4.125%, 4/01/10 ......................................................... No Opt. Call 1,101,506 AAA 1,000 4.25%, 4/01/11 .......................................................... No Opt. Call 1,078,130 ------------ 2,179,636 ------------ KENTUCKY--3.4% AAA 12,675 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/10, MBIA .................................................. No Opt. Call 10,050,641 ------------ LOUISIANA--2.1% AAA 6,010 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. B, 4.00%, 5/15/11, MBIA ........................................................... No Opt. Call 6,319,335 ------------ MASSACHUSETTS--3.4% AAA 7,865(3) Massachusetts, GO, Ser. C, 6.70%, 11/01/04, FGIC .......................... N/A 8,304,418 AAA 1,725 Massachusetts Hlth. & Edl. Facs. Auth., So. Shore Hosp., Ser. D, 6.50%, 7/01/10, MBIA ........................................................... 01/04 @ 101 1,765,365 ------------ 10,069,783 ------------ MICHIGAN--4.1% Detroit, GO, MBIA, AAA 1,580 4.00%, 4/01/10 .......................................................... No Opt. Call 1,677,391 AAA 1,955 4.00%, 4/01/11 .......................................................... No Opt. Call 2,057,970 Michigan Mun. Bd. Auth., AAA 900 Ser. A, 6.50%, 11/01/12, MBIA ........................................... 01/04 @ 101 912,600 AAA 730 Ser. B, 6.45%, 11/01/07, AMBAC .......................................... 11/04 @ 102 774,472 AAA 730 Ser. B, 6.65%, 11/01/09, AMBAC .......................................... 11/04 @ 102 775,654 AAA 1,310(3) Ser. G, 6.45%, 11/01/04, AMBAC .......................................... N/A 1,393,526 AAA 1,320(3) Ser. G, 6.65%, 11/01/04, AMBAC .......................................... N/A 1,406,301 AAA 2,810 Wyandotte City Sch. Dist., Bldg. & Site, 4.00%, 5/01/11, FSA .............. No Opt. Call 2,967,079 ------------ 11,964,993 ------------ MINNESOTA--1.8% AAA 2,800 Hopkins Indpt. Sch. Dist. No. 270, GO, Ser. B, 4.00%, 2/01/11, FSA ........ No Opt. Call 2,968,112 A+ 2,180 So. Minnesota Mun. Pwr. Agcy., Ser. B, 5.75%, 1/01/11 ..................... ETM 2,246,446 ------------ 5,214,558 ------------ NEVADA--3.2% AAA 4,185(3) Clark Cnty. Sch. Dist., GO, 6.75%, 12/15/04, FGIC ......................... N/A 4,449,325 Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC, AAA 3,795 Zero Coupon, 1/01/11 .................................................... No Opt. Call 2,930,765 AAA 2,870 Zero Coupon, 1/01/12 .................................................... No Opt. Call 2,094,755 ------------ 9,474,845 ------------ NEW JERSEY--0.3% AAA 1,000 Monmouth Cnty. Impvt. Auth., Govt. Loan, 3.375%, 12/01/10, FSA ............ No Opt. Call 1,026,990 ------------ NEW MEXICO--3.9% AAA 1,750 Las Cruces Sch. Dist. No. 002, GO, 5.25%, 8/01/11, FSA .................... 08/09 @ 100 1,953,105 New Mexico Fin. Auth., Pub. Proj., Ser. A, MBIA, AAA 1,444 3.40%, 6/01/11 .......................................................... No Opt. Call 1,463,927 AAA 1,625 4.20%, 6/01/10 .......................................................... No Opt. Call 1,747,541 AAA 3,625 4.30%, 6/01/11 .......................................................... No Opt. Call 3,893,722 AAA 2,230 New Mexico Hwy. Comn., Ser. B, 4.75%, 6/15/11, AMBAC ...................... No Opt. Call 2,462,232 ------------ 11,520,527 ------------
See Notes to Financial Statements. 21
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== NEW YORK--15.6% AAA $ 8,950 Long Island Pwr. Auth., Elec. Sys. Rev., Ser. A, 5.50%, 12/01/10, AMBAC ... No Opt. Call $ 10,336,355 AAA 4,500(3) New York City, GO, Ser. B1, 6.95%, 8/15/04, MBIA .......................... N/A 4,706,640 New York Env. Fac. Corp., PCR, Ser. D, AAA 5,145(3) 6.70%, 11/15/04 ......................................................... N/A 5,494,654 AAA 1,010 6.70%, 5/15/09 .......................................................... 11/04 @ 102 1,075,630 AAA 4,180(3) 6.80%, 11/15/04 ......................................................... N/A 4,467,625 AAA 785 6.80%, 5/15/10 .......................................................... 11/04 @ 102 836,677 New York Med. Care Fac. Fin., New York Hosp., Ser. A, AMBAC, AAA 9,715(3) 6.60%, 2/15/05 .......................................................... N/A 10,498,321 AAA 2,695(3) 6.625%, 2/15/05 ......................................................... N/A 2,913,052 AAA 5,000 New York St. Thruway Auth., St. Personal Income Tax Rev., Ser. A, 5.00%, 3/15/11, FSA ..................................................... No Opt. Call 5,618,900 ------------ 45,947,854 ------------ OHIO--0.7% AAA 1,000 Akron, GO, 4.00%, 12/01/10, MBIA .......................................... No Opt. Call 1,067,740 AAA 1,015 Univ. of Cincinnati, Ser. G, 3.50%, 6/01/09, AMBAC ........................ No Opt. Call 1,063,669 ------------ 2,131,409 ------------ OREGON--3.8% AAA 1,995 Lane Cnty. Sch. Dist. No. 4, 3.75%, 1/01/11, FSA .......................... No Opt. Call 2,079,767 AAA 1,000 Oregon Dept. of Admin. Svcs., Lottery Rev., Ser. C, 3.50%, 4/01/11, FSA ... No Opt. Call 1,024,470 Washington & Clackamas Cntys. Sch. Dist., GO, MBIA, AAA 3,820 4.00%, 6/15/10 .......................................................... No Opt. Call 4,085,987 AAA 3,720 4.00%, 6/15/11 .......................................................... No Opt. Call 3,949,003 ------------ 11,139,227 ------------ PENNSYLVANIA--9.5% AAA 2,430 Central York Sch. Dist., GO, 4.125%, 6/01/11, FGIC ........................ No Opt. Call 2,597,184 AAA 4,285 Dauphin Cnty. Gen. Auth., HAPSCO-Western Pennsylvania Hosp. Proj., Ser. B, 6.25%, 7/01/08, MBIA ............................................ ETM 4,704,844 AAA 7,500 Pennsylvania Higher Edl. Facs. Auth., Univ. of Pennsylvania Hlth. Svcs., Ser. A, 5.25%, 8/01/10, FSA ............................................. 08/09 @ 101 8,397,225 AAA 2,100 Philadelphia Wtr. & Wst., 5.625%, 6/15/08, AMBAC .......................... No Opt. Call 2,389,611 AAA 7,000 Pittsburgh, GO, Ser. A, 5.20%, 3/01/10, FGIC .............................. 09/05 @ 100 7,401,030 AAA 1,075 State Pub. Sch. Bldg. Auth., York Sch. Dist. Proj., 4.75%, 5/01/11, FSA ... No Opt. Call 1,191,939 AAA 1,250 Wilson Sch. Dist., GO, 4.00%, 5/15/10, FSA ................................ No Opt. Call 1,332,212 ------------ 28,014,045 ------------ RHODE ISLAND--1.9% AAA 5,000 Rhode Island & Providence Plantations, GO, Ser. B, 4.20%, 6/01/10, FGIC ... ETM 5,425,900 AAA 235 Rhode Island Clean Wtr. Protection Fin. Agcy., PCR, Ser. A, 6.70%, 10/01/10, MBIA .......................................................... 04/04 @ 101 240,271 ------------ 5,666,171 ------------ SOUTH CAROLINA--5.1% AAA 14,925 Piedmont Mun. Pwr. Agcy., Elec. Rev., 6.30%, 1/01/11, MBIA ................ 01/04 @ 101 15,114,100 ------------ TENNESSEE--0.8% Clarksville Wtr., Swr. & Gas, FSA, AAA 1,005 4.45%, 2/01/10 .......................................................... No Opt. Call 1,093,350 AAA 1,100 4.65%, 2/01/11 .......................................................... No Opt. Call 1,209,032 ------------ 2,302,382 ------------ TEXAS--14.0% AAA 1,090 Addison, GO, 3.375%, 2/15/11, FGIC ........................................ No Opt. Call 1,108,301 Bexar Met. Wtr. Dist., Wtrwrks. Sys., FSA, AAA 1,085 3.70%, 5/01/10 .......................................................... No Opt. Call 1,134,042 AAA 1,090 3.80%, 5/01/11 .......................................................... No Opt. Call 1,137,491 AAA 2,500 Dallas Ft. Worth Regl. Arpt., Ser. A, 7.375%, 11/01/10, FGIC .............. 05/04 @ 102 2,593,475 AAA 2,000 Dallas Rapid Transit, 4.30%, 12/01/10, AMBAC .............................. No Opt. Call 2,159,780 Harris Cnty., GO, AAA 1,500 Ser. A, 5.00%, 10/01/10, FSA ............................................ No Opt. Call 1,683,690 AAA 330 Ser. B, Zero Coupon, 8/15/08, FGIC ...................................... ETM 292,697 AAA 2,255 Ser. B, Zero Coupon, 8/15/08, FGIC ...................................... No Opt. Call 1,976,485 AAA 2,000 Houston, GO, Ser. A1, 5.00%, 3/01/11, MBIA ................................ No Opt. Call 2,240,880 AAA 2,490 Houston Area Wtr. Corp., Northeast Wtr. Purification Proj., 4.50%, 3/01/11, FGIC ........................................................... No Opt. Call 2,707,228 AAA 10,440 Houston Wtr. & Swr. Sys., Ser. C, Zero Coupon, 12/01/10, AMBAC ............ No Opt. Call 8,231,314
See Notes to Financial Statements. 22
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== TEXAS (CONTINUED) AAA $ 5,550 Katy Indpt. Sch. Dist., GO, Ser. A, Zero Coupon, 2/15/11 .................. No Opt. Call $ 4,293,757 AAA 4,000 Texas Mun. Pwr. Agcy., 5.50%, 9/01/10, MBIA ............................... No Opt. Call 4,596,480 AAA 2,245 Texas Pub. Fin. Auth., 4.00%, 2/01/11, FGIC ............................... No Opt. Call 2,368,071 AAA 1,250 Texas Tech. Univ. Revs., Ser. 9, 5.00%, 2/15/11, AMBAC .................... No Opt. Call 1,398,025 AAA 1,630 Texas Univ. Sys. Fin., 3.50%, 3/15/11, FSA ................................ No Opt. Call 1,668,598 AAA 1,500 Univ. of Houston, Ser. A, 4.00%, 2/15/10, FSA ............................. No Opt. Call 1,590,705 ------------ 41,181,019 ------------ UTAH--2.7% AAA 3,470 Intermountain Pwr. Agcy., Sply., Ser. A, 5.25%, 7/01/11, MBIA ............. 07/09 @ 101 3,911,766 AAA 1,450(3) Salt Lake Cnty. Mun. Bldg. Auth., Ser. A, 6.15%, 10/01/04, MBIA ........... N/A 1,518,991 AAA 3,175 Salt Lake Cnty. Wtr. Conservancy Dist., Ser. A, Zero Coupon, 10/01/10, AMBAC ................................................................... No Opt. Call 2,525,998 ------------ 7,956,755 ------------ WASHINGTON--12.5% AAA 7,345 Benton Cnty. Sch. Dist. No. 17, GO, Kennewick Sch., 4.50%, 12/01/10, FSA .. No Opt. Call 8,022,723 AAA 1,000 Chelan Cnty. Sch. Dist., GO, 4.50%, 12/01/10, FSA ......................... No Opt. Call 1,092,270 AAA 3,000 Clark Cnty. Pub. Util. Dist. No. 1, Elec. Rev., 4.50%, 1/01/11, AMBAC ..... No Opt. Call 3,256,290 AAA 2,040 Clark Cnty. Sch. Dist. No. 114, Evergreen, GO, 4.125%, 12/01/10, FSA ...... No Opt. Call 2,180,842 AAA 1,010 Tacoma, GO, 4.625%, 12/01/10, FGIC ........................................ No Opt. Call 1,111,020 Washington, GO, MBIA, AAA 5,000 Ser. A, 5.50%, 7/01/11 .................................................. 07/09 @ 100 5,653,300 AAA 1,505 Ser. R, 3.125%, 1/01/11 ................................................. No Opt. Call 1,504,518 Washington Pub. Pwr. Sply. Sys., MBIA, AAA 1,300 Ser. B, Zero Coupon, 7/01/10 ............................................ No Opt. Call 1,032,434 AAA 9,160 Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10 ....................... ETM 7,483,995 AAA 3,745 Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10 ....................... No Opt. Call 2,974,204 AAA 2,280 Whatcom Cnty. Sch. Dist. No. 503, GO, 4.50%, 12/01/10, FSA ................ No Opt. Call 2,490,376 ------------ 36,801,972 ------------ WEST VIRGINIA--3.4% West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., Ser. A, MBIA, AAA 3,705 4.50%, 6/01/10 .......................................................... No Opt. Call 4,046,675 AAA 4,420 4.50%, 6/01/11 .......................................................... No Opt. Call 4,817,844 AAA 1,170 West Virginia Sch. Bldg. Auth., 4.00%, 7/01/11, AMBAC ..................... No Opt. Call 1,237,603 ------------ 10,102,122 ------------ WISCONSIN--5.6% AAA 1,045 Appleton Wtrwks., 4.375%, 1/01/11, FGIC ................................... No Opt. Call 1,126,124 Wisconsin Clean Wtr., Ser. 2, MBIA, AAA 4,640 4.00%, 6/01/10 .......................................................... No Opt. Call 4,933,202 AAA 9,850 4.00%, 6/01/11 .......................................................... No Opt. Call 10,413,124 ------------ 16,472,450 ------------ WYOMING--2.1% Albany Cnty. Impvts. Statutory Trust, COP, MBIA, AAA 1,325 4.00%, 1/15/10 .......................................................... No Opt. Call 1,404,129 AAA 1,450 4.00%, 7/15/10 .......................................................... No Opt. Call 1,534,404 AAA 1,480 4.00%, 1/15/11 .......................................................... No Opt. Call 1,560,690 AAA 1,510 4.00%, 7/15/11 .......................................................... No Opt. Call 1,587,282 ------------ 6,086,505 ------------ TOTAL LONG-TERM INVESTMENTS (COST $421,798,697) ........................... 457,209,359 ------------
See Notes to Financial Statements. 23
SHARES (000) DESCRIPTION VALUE ================================================================================================================================== MONEY MARKET FUND--1.4% 4,050 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $4,050,000) ...... $ 4,050,000 ------------ TOTAL INVESTMENTS--156.3% (COST $425,848,697) ............................. $461,259,359 Other assets in excess of liabilities--1.4% ............................... 4,192,338 Preferred shares at redemption value, including dividends payable--(57.8)% (170,424,011) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $295,027,686 ============
(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. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 93.3% of the Trust's total investments. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue -------------------------------------------------------------------------------- See Notes to Financial Statements. 24 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK MUNICIPAL 2018 TERM TRUST (BPK)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--153.1% ALABAMA--4.9% Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Baa2 $ 5,000 6.15%, 6/01/19 .......................................................... 06/05 @ 102 $ 5,185,200 BBB 1,000 Proj. A, 5.90%, 2/01/17 ................................................. 02/04 @ 102 1,019,610 A2 5,845 Huntsville Hlth. Care Auth., Ser. A, 5.625%, 6/01/22 ...................... 06/12 @ 101 5,999,834 ------------ 12,204,644 ------------ ARIZONA--1.5% AA 5,000 Glendale Cnty., 2.00%, 7/01/18 ............................................ 07/13 @ 100 3,832,100 ------------ CALIFORNIA--2.1% A 1,750 Agua Caliente Band of Cahuilla Indians, 5.60%, 7/01/13 .................... No Opt. Call 1,758,050 B- 3,460 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 ................................................. 12/12 @ 102 3,427,199 ------------ 5,185,249 ------------ CONNECTICUT--2.9% Baa3 3,750(3) Mashantucket Western Pequot Tribe, Spec. Rev., Ser. B, 5.75%, 9/01/18 ..... 09/07 @ 102 3,930,862 BBB- 3,150 Mohegan Tribe Indians, Pub. Impvt. Priority Dist., 6.00%, 1/01/16 ......... 01/11 @ 101 3,330,401 ------------ 7,261,263 ------------ DELAWARE--6.0% NR 14,000(3) Charter Mac Equity Issuer Trust, Ser. A-3, 6.80%, 10/01/52 ................ 10/14 @ 100 14,811,860 ------------ FLORIDA--7.6% Baa1 1,585 Capital Trust Agy. Mult. Fam., American Opp., Ser. A, 5.75%, 6/01/23 ...... 06/13 @ 102 1,536,293 NR 4,750 Live Oak Cmnty. Dev. Dist., No. 1, Spl. Assmt., Ser. B, 5.30%, 5/01/08 .... No Opt. Call 4,787,002 NR 5,150 Stevens Plantation Cmnty. Dist., Spl. Assmt. Rev., Ser. B, 6.375%, 5/01/13 No Opt. Call 5,197,792 NR 1,030 Sumter Landing Cmnty. Dev. Dist., 6.25%, 5/01/13 .......................... No Opt. Call 1,046,233 NR 6,005 Village Cmnty. Dev., Assmt. Rev., Ser. B, 5.40%, 5/01/07 No Opt. Call 6,088,169 ------------ 18,655,489 ------------ GEORGIA--2.3% Gainesville & Hall Cnty. Hosp. Auth., Northeast Georgia Hlth. Sys. Inc. Proj., A 2,700 5.25%, 5/15/18 .......................................................... 05/11 @ 100 2,744,199 A 2,800 5.50%, 5/15/21 .......................................................... 05/11 @ 100 2,867,704 ------------ 5,611,903 ------------ ILLINOIS--20.5% AAA 5,000 Chicago O'Hare Intl. Arpt., Ser. A, 5.75%, 1/01/18, MBIA .................. 01/12 @ 100 5,468,800 Illinois Dev. Fin. Auth., A 12,500 Adventist Hlth. Sys. Sunbelt Obl., 5.50%, 11/15/20 ...................... 11/09 @ 101 12,699,125 A2 10,000 PCR, Ser. C, 5.95%, 8/15/26 ............................................. 12/06 @ 101 10,261,300 BBB 5,980 Illinois Edl. Facs. Auth., Student Hsg., Edl. Adv. Fund, Univ. Ctr. Proj., 6.00%, 5/01/22 .......................................................... 05/12 @ 101 6,086,145 A2 5,000 Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22 ...... 01/13 @ 100 5,174,000 Illinois Sports Facs. Auth., Dedicated St. Tax Supported Rev., AMBAC, AAA 1,885 Zero Coupon, 6/15/19 .................................................... 06/15 @ 101 1,467,755 AAA 1,985 Zero Coupon, 6/15/20 .................................................... 06/15 @ 101 1,540,658 AAA 2,090 Zero Coupon, 6/15/21 .................................................... 06/15 @ 101 1,609,614 Kane & Du Page Cntys. Sch. Dist., GO, Ser. B, FSA, AAA 4,625 Zero Coupon, 1/01/18 .................................................... 01/12 @ 72.424 2,406,017 AAA 4,100 Zero Coupon, 1/01/19 .................................................... 01/12 @ 67.935 2,008,918 AAA 2,950 Zero Coupon, 1/01/21 .................................................... 01/12 @ 60.037 1,262,895 AAA 1,700 Zero Coupon, 1/01/22 .................................................... 01/12 @ 56.453 680,255 ------------ 50,665,482 ------------ INDIANA--7.6% AA 13,970 Indiana Hlth. Fac. Fin. Auth., Sisters of St. Francis, 5.75%, 11/01/21 .... 11/11 @ 101 14,765,871 Baa2 4,000 Petersburg, PCR, Pwr. & Lt. Conv., 5.75%, 8/01/21 ......................... 08/11 @ 102 3,950,560 ------------ 18,716,431 ------------ LOUISIANA--1.7% NR 4,000 Louisiana Pub. Facs. Auth., Dept. of Pub. Safety, 5.875%, 6/15/14 ......... 06/10 @ 100 4,108,920 ------------
See Notes to Financial Statements. 25
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== MICHIGAN--8.9% BBB $ 5,000 Dickinson Cnty. Econ. Dev. Corp., PCR, Champion Intl. Corp. Proj., 5.85%, 10/01/18 ................................................................ 01/04 @ 102 $ 5,109,800 A1 5,450 Michigan Hosp. Fin. Auth., Henry Ford Hlth. Sys., Ser. A, 6.00%, 11/15/19 . 11/09 @ 101 5,776,291 BB 9,000 Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 ......................... 07/07 @ 101 9,388,080 Pontiac Tax Increment Fin. Auth., ACA, A 700 Dev. Area 2, 5.625%, 6/01/22 ............................................ 06/12 @ 101 741,832 A 1,000 Dev. Area 3, 5.375%, 6/01/17 ............................................ 06/12 @ 101 1,055,760 ------------ 22,071,763 ------------ MISSISSIPPI--4.2% BBB 9,000 Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22 .......................................................... No Opt. Call 10,472,850 ------------ NEVADA--2.5% NR 1,100 Las Vegas Spec. Imp. Dist. No. 809, Summerlin Area, 5.35%, 6/01/17 ........ 06/04 @ 103 1,073,886 BBB+ 5,000 Nevada Dept. of Bus. & Ind., Republic Svc. Inc. Proj., 5.625%, 12/01/26 ... No Opt. Call 5,200,800 ------------ 6,274,686 ------------ NEW HAMPSHIRE--4.0% AAA 7,000 New Hampshire Bus. Fin. Auth., PCR, Pub. Svc. Co. Proj., Ser. C, 5.45%, 5/01/21, MBIA .................................................... 05/12 @ 101 7,690,830 A+ 2,025 New Hampshire Hlth. & Ed. Facs. Auth., Exeter Hosp. Proj., 6.00%, 10/01/24 10/11 @ 101 2,131,495 ------------ 9,822,325 ------------ NEW JERSEY--13.0% New Jersey Econ. Dev. Auth., B 4,065 Continental Airlines Inc. Proj., 7.00%, 11/15/30 ........................ 11/10 @ 101 3,737,605 B 6,750 Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........................ 11/10 @ 101 6,358,770 Baa3 8,410 Kapkowski Road Landfill Proj., 5.50%, 4/01/16 ........................... No Opt. Call 8,614,531 BBB 15,000 Tobacco Settlement Fin. Corp., 6.00%, 6/01/37 ............................. 06/12 @ 100 13,404,450 ------------ 32,115,356 ------------ NEW YORK--1.1% BBB 2,750 New York Cntys. Tobacco Trust III, Tobacco Settlement Rev., 5.00%, 6/01/27 No Opt. Call 2,746,508 ------------ NORTH CAROLINA--1.7% A3 4,000 Wake Cnty. Ind. Facs., PCR, Carolina Pwr. & Lt. Co. Proj., 5.375%, 2/01/17 02/12 @ 101 4,183,200 ------------ OHIO--2.2% Baa1 5,000 Ohio, PCR, Gen. Motors Corp. Proj., 5.625%, 3/01/15 ....................... No Opt. Call 5,322,350 ------------ PENNSYLVANIA--6.7% Philadelphia Auth. for Ind. Dev., Ser. B, FSA, AAA 5,000 5.50%, 10/01/18 ......................................................... 10/11 @ 101 5,556,800 AAA 5,000 5.50%, 10/01/19 ......................................................... 10/11 @ 101 5,521,500 West Cornwall Twnshp., Mun. Auth. Coll., Elizabethtown Coll. Proj., BBB+ 2,500 5.90%, 12/15/18 ......................................................... 12/11 @ 100 2,712,700 BBB+ 2,650 6.00%, 12/15/22 ......................................................... 12/11 @ 100 2,847,293 ------------ 16,638,293 ------------ SOUTH CAROLINA--3.5% NR 3,500 Lancaster Cnty., Assmnt. Rev., Edgewater Imp. Dist., Ser. B, 6.125%, 11/01/14 No Opt. Call 3,542,035 BBB 5,000 South Carolina Jobs Econ. Dev. Auth., Hosp. Fac. Rev., Palmetto Hlth. Alliance, Ser. A, 6.125%, 8/01/23 ....................................... 08/13 @ 100 5,112,700 ------------ 8,654,735 ------------ SOUTH DAKOTA--5.8% BBB 15,000 Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32 ... 06/12 @ 101 14,272,800 ------------ TENNESSEE--2.2% AAA 12,000 Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/19, FSA .................................................... 01/13 @ 71.667 5,464,320 ------------ TEXAS--23.4% BBB 2,000 Alliance Arpt. Auth. Inc., Fed. Express Corp. Proj., 6.375%, 4/01/21 ...... 04/06 @ 102 2,133,980 Birdville Indpt. Sch. Dist., GO, AAA 1,615 Zero Coupon, 2/15/18 .................................................... No Opt. Call 838,847 AAA 1,815 Zero Coupon, 2/15/19 .................................................... No Opt. Call 888,098 AAA 2,625 Zero Coupon, 2/15/20 .................................................... No Opt. Call 1,207,867 AAA 2,500 Zero Coupon, 2/15/21 .................................................... No Opt. Call 1,079,875 BBB 12,625 Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 5.75%, 5/01/36 ...... No Opt. Call 13,199,059 NR 4,305 Dallas Cnty. Flood Control, 6.75%, 4/01/16 ................................ 04/13 @ 100 4,386,106 Dallas Ft. Worth Intl. Arpt. Fac. Impvt., Ser. A, FGIC, AAA 5,000 5.875%, 11/01/17 ........................................................ 11/11 @ 100 5,585,600 AAA 5,000 5.875%, 11/01/18 ........................................................ 11/11 @ 100 5,564,350
See Notes to Financial Statements. 26
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== TEXAS (CONTINUED) Texas Affordable Hsg. Corp., Mult. Fam. Hsg. Rev., Arborstone/Baybrook Oaks, Ser. A, Baa1 $12,695 5.55%, 11/01/18 ......................................................... 11/11 @ 102 $ 12,915,005 Baa1 9,800 5.75%, 11/01/22 ......................................................... 11/11 @ 102 9,960,818 ------------ 57,759,605 ------------ WASHINGTON--4.8% Energy Northwest Wind Proj., A- 5,000 Ser. A, 6.00%, 7/01/23 .................................................. 01/07 @ 103 5,277,050 A- 6,175 Ser. B, 5.875%, 7/01/20 ................................................. 01/07 @ 103 6,539,757 ------------ 11,816,807 ------------ WISCONSIN--12.0% BBB 14,500 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 .......................... 06/12 @ 100 13,623,620 Wisconsin Hlth. & Edl. Facs. Auth., A+ 5,000 Froedert & Cmnty. Hlth. Oblig., 5.375%, 10/01/21 ........................ 10/11 @ 101 5,097,200 A 10,000 Wheaton Franciscan Svcs., 6.25%, 8/15/22 ................................ 02/12 @ 101 10,866,300 ------------ 29,587,120 ------------ TOTAL LONG-TERM INVESTMENTS (COST $365,093,288) 378,256,059 ------------ SHORT-TERM INVESTMENTS--1.0% CALIFORNIA--0.8% VMIG1 2,000(4) Long Beach Unified Sch. Dist., COP, Cap. Impvt. Refdg. Proj., 1.25%, 1/02/04, AMBAC, FRWD .................................................... N/A 2,000,000 ------------ ---------- SHARES (000) ---------- MONEY MARKET FUND--0.2% 550 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ N/A 550,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $2,550,000) ............................ 2,550,000 ------------ TOTAL INVESTMENTS--154.1% (COST $367,643,288) ............................. $380,805,916 Other assets in excess of liabilities--1.6% ............................... 3,851,872 Preferred shares at redemption value, including dividends payable--(55.7)% (137,625,996) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $247,031,792 ============
(1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of December 31, 2003, the Trust held 7.6% of its net assets, with a current market value of $18,742,722, in securities restricted as to resale. (4) For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FRWD -- Floating Rate Weekly Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue -------------------------------------------------------------------------------- See Notes to Financial Statements. 27 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK MUNICIPAL 2020 TERM TRUST (BKK)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--136.3% CALIFORNIA--21.2% AAA $ 5,000 California Hlth. Fac. Fin. Auth., Cottage Hlth. Sys., Ser. B, 5.00%, 11/01/23, MBIA .......................................................... 11/13 @ 100 $ 5,146,050 California St, GO, Baa1 12,000 5.00%, 11/01/22 ......................................................... 11/13 @ 100 11,955,120 Baa1 12,500 5.125%, 11/01/23 ........................................................ 11/13 @ 100 12,536,125 Golden St. Tobacco Sec. Corp., BBB 3,000 Ser. A-1, 6.625%, 6/01/40 ............................................... 06/13 @ 100 2,905,950 BBB 975 Ser. A-3, 7.875%, 6/01/42 ............................................... 06/13 @ 100 1,049,129 BBB 1,500 Ser. A-5, 7.875%, 6/01/42 ............................................... 06/13 @ 100 1,614,045 BBB 20,000 Ser. B, 5.375%, 6/01/28 ................................................. 06/10 @ 100 19,727,600 BBB 2,000 Tobacco Settlement Rev., Ser. A-1, 6.75%, 6/01/39 ....................... 06/13 @ 100 1,970,820 B- 3,035 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 ................................................. 12/12 @ 102 3,006,228 AAA 6,865 Riverside Cnty., Riverside Cnty. Hosp. Proj., Zero Coupon, 6/01/25, MBIA .. No Opt. Call 2,185,473 ------------ 62,096,540 ------------ COLORADO--0.6% AAA 4,500 E-470 Pub. Hwy. Auth., Cap. Apprec., Ser. B, Zero Coupon, 9/01/22, MBIA ... No Opt. Call 1,750,140 ------------ CONNECTICUT--0.9% BBB- 2,500 Mohegan Tribe Indians Gaming Auth., Pub. Impvt., 5.125%, 1/01/23 .......... 01/14 @ 100 2,492,350 ------------ DISTRICT OF COLUMBIA--3.5% Dist. of Columbia, Friendship Pub. Charter Sch. Inc., ACA A 3,320 5.00%, 6/01/23 .......................................................... 06/14 @ 100 3,321,029 A 2,680 5.75%, 6/01/18 .......................................................... 06/14 @ 100 2,929,052 BBB 4,215 Tobacco Settlement Fin. Corp., 6.50%, 5/15/33 ............................. No Opt. Call 4,049,435 ------------ 10,299,516 ------------ FLORIDA--8.7% NR 4,445 Grand Hampton Cmnty. Dev. District, Cap. Impvt., 6.10%, 5/01/24 ........... 05/13 @ 101 4,467,269 NR 3,000 Sterling Hill Cmnty. Dev. Dist., Ser. B, 5.50%, 11/01/10 .................. No Opt. Call 3,035,640 NR 8,000 Stevens Plantation Cmnty. Dist., Spl. Assmt. Rev., Ser. B, 6.375%, 5/01/13 No Opt. Call 8,074,240 NR 4,000 Village Cmnty. Dev. Dist. No. 5, Spl. Assmt. Rev., Ser. A, 6.00%, 5/01/22 . 05/13 @ 101 4,035,600 NR 6,000 Westchester Comnty. Dev. Dist No. 1, Spl. Assmt, 6.00%, 5/01/23 ........... 05/13 @ 101 5,988,960 ------------ 25,601,709 ------------ GEORGIA--3.9% BBB 2,350 Richmond Cnty. Dev. Auth., Env. Impvt., 5.75%, 11/01/27 ................... 11/13 @ 100 2,382,689 AA 8,620 Savannah Hosp. Auth., St. Joseph/Chandler Hlth. Sys., 5.25%, 7/01/23, RAA . 01/14 @ 100 8,969,627 ------------ 11,352,316 ------------ ILLINOIS--8.3% AAA 14,000 Illinois Dev. Fin. Auth., Gas Supply Rev., Ser. E, 4.875%, 11/01/38, AMBAC 11/13 @ 101 14,211,260 AA+ 4,800 Illinois Edl. Fac. Auth., Northwestern Univ., 5.00%, 12/01/21 ............. 12/13 @ 100 5,011,200 AAA 13,455 Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., Ser. A, Zero Coupon, 6/15/22, MBIA ..................... No Opt. Call 5,213,274 ------------ 24,435,734 ------------ KANSAS--1.0% AAA 6,440 Wyandotte Cnty., Unified Gov't. Spl. Oblig., Intl. Speedway, Zero Coupon, 12/01/20, MBIA .................................................. No Opt. Call 2,850,666 ------------ KENTUCKY--3.5% B 6,635 Kenton Cnty. Arpt. Brd., Delta Airlines, 7.125%, 2/01/21 .................. 02/04 @ 101 6,368,207 BBB 3,750 Maysville Solid Wst. Disp., Inland Container Corp. Proj., 6.90%, 9/01/22 .. 09/13 @ 102 3,946,200 ------------ 10,314,407 ------------ LOUISIANA--0.7% BBB 2,000 De Soto Parish, Env. Impvt. Rev., Ser. A, 5.85%, 11/01/27 ................. 11/13 @ 100 2,027,660 ------------ MARYLAND--1.1% NR 3,000 Frederick Cnty. Spec. Oblig., Urbana Cmnty. Dev. Auth., 6.625%, 7/01/25 ... 07/07 @ 102 3,133,260 ------------ MICHIGAN--1.8% BB 5,000 Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 ......................... 07/07 @ 101 5,215,600 ------------
See Notes to Financial Statements. 28
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== MISSISSIPPI--1.0% BBB $ 3,000 Warren Cnty. Env. Impvt, Intl. Paper, Ser. A, 5.85%, 11/01/27 ............. 11/13 @ 100 $ 3,041,490 ------------ NEW HAMPSHIRE--1.7% BBB+ 5,000 New Hampshire Hlth., Elliot Hosp., Ser. B, 5.60%, 10/01/22 ................ 10/13 @ 100 4,969,800 ------------ NEW JERSEY--14.9% New Jersey Econ. Dev. Auth., B 10,000 Continental Airlines Inc. Proj., 7.00%, 11/15/30 ........................ 11/10 @ 101 9,194,600 B 1,500 Continental Airlines Inc. Proj., 9.00%, 6/01/33 ......................... 06/13 @ 101 1,606,185 Baa3 7,500 Kapkowski Road Landfill Proj., 6.50%, 4/01/31 ........................... No Opt. Call 8,380,050 Baa1 4,000 New Jersey Hlth. Care Fac. Fin. Auth., Cap. Hlth. Sys. Oblig. Grp., Ser. A, 5.75%, 7/01/23 .................................................. 07/13 @ 100 4,134,880 BBB 20,325 Tobacco Settlement Fin. Corp., 7.00%, 6/01/41 ............................. 06/13 @ 100 20,506,502 ------------ 43,822,217 ------------ NEW YORK--18.5% Battery Park City Auth., Ser. A, AAA 8,000 5.00%, 11/01/23 ......................................................... 11/13 @ 100 8,349,440 AAA 5,000 5.00%, 11/01/24 ......................................................... 11/13 @ 100 5,190,100 BBB 3,750 New York Cntys. Tobacco Trust III, Tobacco Settlement Rev., 5.00%, 6/01/27 No Opt. Calll 3,745,238 Tobacco Settlement Fin. Corp., AAA 20,000 Ser. A-1, 5.25%, 6/01/22, AMBAC ......................................... 06/13 @ 100 21,161,000 AA- 4,000 Ser. C-1, 5.50%, 6/01/20 ................................................ 06/13 @ 100 4,273,400 AA- 7,000 Ser. C-1, 5.50%, 6/01/21 ................................................ 06/13 @ 100 7,456,400 AA- 4,000 Ser. C-1, 5.50%, 6/01/22 ................................................ 06/13 @ 100 4,254,520 ------------ 54,430,098 ------------ OHIO--4.8% Cuyahoga Cnty., Cleveland Clinic Hlth. Sys., A1 3,000 6.00%, 1/01/19 .......................................................... 07/13 @ 100 3,295,440 A1 10,000 6.00%, 1/01/20 .......................................................... 07/13 @ 100 10,936,700 ------------ 14,232,140 ------------ PENNSYLVANIA--5.9% A- 10,000 Lancaster Cnty. Hosp. Auth., Gen. Hosp. Proj., 5.75%, 3/15/20 ............. 09/13 @ 100 10,544,700 BBB+ 6,680 Pennsylvania St. Higher Edl. Fac., La Salle Univ., 5.50%, 5/01/26 ......... 05/13 @ 100 6,812,665 ------------ 17,357,365 ------------ RHODE ISLAND--0.7% BBB 2,000 St. Hlth. & Edl. Bldg. Corp., Hosp. Fin., Ser. A, 5.875%, 9/15/23 ......... 09/08 @ 100 1,984,420 ------------ TEXAS--8.2% BBB 1,100 Brazos River Auth., PCR, TXU Energy Co. LLC Proj., Ser. A, 6.75%, 4/01/38 . No Opt. Call 1,214,136 BBB 3,500 Port Corpus Christi Indl. Dev. Corp., Valero Convertible, Ser. C, 5.40%, 4/01/18 ................................................................. 04/08 @ 102 3,546,445 Baa1 5,000 Texas Affordable Hsg. Corp., Mult. Fam. Hsg. Rev., Arborstone/Baybrook Oaks, Ser. A, 5.85%, 11/01/31 ................................................. 11/11 @ 102 5,012,100 Texas St. Tpke. Auth., Central Texas Tpke. Sys., Ser. A, AMBAC, AAA 7,990 Zero Coupon, 8/15/21 .................................................... No Opt. Call 3,338,782 AAA 18,450 Zero Coupon, 8/15/24 .................................................... No Opt. Call 6,267,465 Weatherford Indpt. Sch. Dist., AAA 6,945 Zero Coupon, 2/15/23 .................................................... 02/11 @ 50.236 2,460,961 AAA 6,945 Zero Coupon, 2/15/24 .................................................... 02/11 @ 47.435 2,311,990 ------------ 24,151,879 ------------ VIRGINIA--4.3% NR 5,000 Celebrate North Cmnty. Dev. Auth., Spl. Assmt. Rev., Ser. B, 6.60%, 3/01/25 03/14 @ 102 5,016,000 BBB- 7,500 Mecklenburg Cnty Ind. Dev. Auth., Exempt FAC-UAE LP Proj, 6.50%, 10/15/17 . 10/12 @ 100 7,641,000 ------------ 12,657,000 ------------ WASHINGTON--2.3% Washington St., AAA 10,000 Ser. S-5, Zero Coupon, 1/01/19, FGIC .................................... No Opt. Call 4,885,500 AAA 4,630 Motor Vehicle, Ser. F, Zero Coupon, 12/01/21, MBIA ...................... No Opt. Call 1,903,393 ------------ 6,788,893 ------------ WISCONSIN--2.2% St. Hlth. & Ed. Fac. Auth., Wheaton Franciscan Svcs., A 2,880 5.50%, 8/15/17 .......................................................... 08/13 @ 100 3,046,867 A 3,190 5.50%, 8/15/18 .......................................................... 08/13 @ 100 3,359,676 ------------ 6,406,543 ------------
See Notes to Financial Statements. 29
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== U. S. VIRGIN ISLANDS--4.5% AA $12,980 Public Fin. Auth., 5.00%, 10/01/24, RAA ................................... 10/14 @ 100 $ 13,233,240 ------------ PUERTO RICO--12.1% Puerto Rico Comnwlth., Pub. Impvt., Ser. A, A- 5,000 5.25%, 7/01/22 .......................................................... 07/13 @ 100 5,280,700 A- 11,000 5.25%, 7/01/23 .......................................................... 07/13 @ 100 11,565,400 A- 7,000 5.25%, 7/01/24 .......................................................... 07/13 @ 100 7,321,370 A- 10,900 Puerto Rico Elec. Pwr. Auth., Ser. NN, 5.125%, 7/01/24 .................... 07/13 @ 100 11,296,760 ------------ 35,464,230 ------------ TOTAL LONG-TERM INVESTMENTS (COST $392,885,423) ........................... 400,109,213 ------------ SHORT-TERM INVESTMENTS--23.4% CALIFORNIA--6.6% A1+ 13,000(3) MET. WTR. DIST., SO. CALIFORNIA WTR. WKS., SER. C-2, 1.20%, 1/02/04,FRDD .. N/A 13,000,000 A1+ 6,200(3) Orange Cnty. Sanitation Dist., COP, Ser. B, 1.27%, 1/02/04, FRDD .......... N/A 6,200,000 ------------ 19,200,000 ------------ FLORIDA--0.8% A1+ 2,460(3) Orange Cnty. Sch. Brd., COP, Ser. B, 1.30%, 1/02/04, MBIA, FRDD ........... N/A 2,460,000 ------------ NEW JERSEY--1.3% A1+ 3,750(3) New Jersey St. Edl. Facs. Auth., Princeton Univ., Ser. B, 1.27%, 1/02/04, FRDD N/A 3,750,000 ------------ NEW YORK--5.2% New York City Mun. Wtr. Fin. Auth., A1+ 8,860(3) Ser. F, 1.17%, 1/02/04, FRDD ............................................ N/A 8,859,946 A1+ 6,500(3) Wtr. & Swr. Sys. Rev., Ser. C, 1.17%, 1/02/04, FRDD ..................... N/A 6,500,000 ------------ 15,359,946 ------------ PENNSYLVANIA--3.9% A1+ 11,540(3) Delaware Cnty. Ind. Dev. Auth., Arpt. Facs., 1.14%, 1/02/04, FRDD ......... N/A 11,540,000 ------------ SOUTH CAROLINA--4.1% A1+ 12,000(3) Piedmont Mun. Pwr., 1.20%, 1/07/04, MBIA, FRWD ............................ N/A 12,000,000 ------------ TEXAS--1.5% A1+ 4,500(3) Brownsville Util. Sys., Ser. A, 1.10%, 1/07/04, MBIA, FRWD ................ N/A 4,500,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $68,809,946) ........................... 68,809,946 ------------ TOTAL INVESTMENTS--159.7% (COST $461,695,369) ............................. $468,919,159 Other assets in excess of liabilities--0.8% ............................... 2,301,870 Preferred shares at redemption value, including dividends payable--(60.5)% (177,623,122) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $293,597,907 ============
(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. (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 GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue RAA -- Fadian Asset Assurance -------------------------------------------------------------------------------- See Notes to Financial Statements. 30 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK MUNICIPAL TARGET TERM TRUST (BMN)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--151.0% ALABAMA--3.3% AAA $ 9,450 Alabama Fed. Hwy. Fin. Auth., Grant Antic., Ser. A, 4.125%, 3/01/07, MBIA . No Opt. Call $ 10,081,355 AAA 5,000 Jefferson Cnty., Capital Imprvt., GO, Ser. A, 5.00%, 4/01/07, MBIA ........ No Opt. Call 5,462,700 AAA 1,000 Mobile, GO, 4.00%, 2/15/07, AMBAC ......................................... No Opt. Call 1,062,140 ------------ 16,606,195 ------------ ALASKA--4.2% Anchorage, GO, AAA 1,750 Ser. A, 4.125%, 6/01/06, FGIC ........................................... No Opt. Call 1,850,327 AAA 2,245 Ser. A, 4.25%, 6/01/07, FGIC ............................................ No Opt. Call 2,408,032 AAA 1,335 Ser. B, 3.20%, 7/01/07, MBIA ............................................ No Opt. Call 1,382,740 AAA 5,000 Ser. B, 3.25%, 7/01/07, MBIA ............................................ No Opt. Call 5,187,200 AAA 1,000 Ser. B, 4.25%, 7/01/07, FGIC ............................................ No Opt. Call 1,070,860 AAA 9,000 No. Slope Boro., Ser. B, Zero Coupon, 6/30/04, FSA ........................ No Opt. Call 8,948,520 ------------ 20,847,679 ------------ ARIZONA--2.4% AAA 5,000 Arizona Trans. Brd., Grant Antic., 4.125%, 1/01/07, MBIA .................. No Opt. Call 5,325,950 AAA 6,255 Maricopa Cnty. Pub. Fin. Corp., Lease Rev., 4.25%, 7/01/07, AMBAC ......... No Opt. Call 6,711,302 ------------ 12,037,252 ------------ ARKANSAS--1.1% AAA 5,000 Univ. of Arkansas, Athl. Fac. Rev., Razorback Stadium Proj., 3.55%, 12/01/21, FSA ........................................................... 12/06 @ 100 5,244,900 ------------ CALIFORNIA--7.6% AAA 6,000 California, GO, 6.30%, 9/01/06, AMBAC ..................................... No Opt. Call 6,702,840 AAA 30,000 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 3.50%, 5/01/07, MBIA No Opt. Call 31,388,400 ------------ 38,091,240 ------------ COLORADO--8.7% AAA 17,150 Denver City & Cnty., GO, Ser. B, 5.625%, 8/01/07, MBIA .................... No Opt. Call 19,224,464 AAA 1,015 El Paso Cnty., COP, Detention Fac. Proj., Ser. B, 2.50%, 12/01/06, AMBAC .. No Opt. Call 1,036,152 AAA 9,700 Met. Football Stad. Dist., Sales Tax Rev., Ser. A, Zero Coupon, 1/01/07, MBIA ........................................................... No Opt. Call 9,011,688 Regl. Transp. Dist., COP, Transp. Vehicle Proj., Ser. A, MBIA, AAA 6,215 5.00%, 6/01/06 .......................................................... No Opt. Call 6,701,883 AAA 5,470 5.00%, 6/01/07 .......................................................... No Opt. Call 6,009,014 AAA 1,100 Thornton, COP, 2.50%, 12/01/06, AMBAC ..................................... No Opt. Call 1,122,924 ------------ 43,106,125 ------------ DELAWARE--0.2% AAA 1,050 Delaware River & Bay Auth., 2.50%, 1/01/07, MBIA .......................... No Opt. Call 1,068,207 ------------ DISTRICT OF COLUMBIA--1.7% AAA 8,250 Dist. of Columbia, GO, Ser. B, 5.90%, 6/01/06, MBIA ....................... 06/04 @ 102 8,576,288 ------------ FLORIDA--3.4% Delray Beach, FSA, AAA 1,255 Decade of Excellence Prog., GO, 3.50%, 2/01/07 .......................... No Opt. Call 1,313,056 AAA 1,740 Utils. Tax, 3.50%, 6/01/07 .............................................. No Opt. Call 1,831,890 AAA 1,645 Florida Mun. Loan Council, Ser. A, 4.00%, 5/01/07, MBIA ................... No Opt. Call 1,753,389 AAA 6,185 Jacksonville Hosp., Univ. Med. Ctr. Inc. Proj., 6.50%, 2/01/07, CONNIE LEE 02/04 @ 100 6,208,936 AAA 1,765 Orange Cnty. Tourist Dev., Tax Rev., Ser. A, 6.375%, 10/01/06, AMBAC ...... ETM 1,800,229 AAA 2,000 Sarasota Wtr. & Swr. Sys., 4.25%, 10/01/06, MBIA .......................... No Opt. Call 2,131,300 AAA 1,865 Tampa Wtr. & Swr., 5.50%, 10/01/06, FSA ................................... No Opt. Call 2,049,430 ------------ 17,088,230 ------------ GEORGIA--1.4% AAA 1,990 Burke Cnty. Dev. Auth., PCR, Oglethorpe Pwr. Corp., Ser. B, 6.45%, 1/01/05, MBIA ........................................................... 01/04 @ 101 1,990,000 AAA 4,805 Columbus Wtr. & Swr., 4.00%, 5/01/07, FSA ................................. No Opt. Call 5,113,625 ------------ 7,103,625 ------------
See Notes to Financial Statements. 31
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== HAWAII--4.7% Hawaii, GO, AAA $ 5,675 Ser. CP, 5.50%, 10/01/06, FGIC .......................................... No Opt. Call $ 6,236,201 AAA 9,000 Ser. CS, 5.25%, 4/01/06, MBIA ........................................... No Opt. Call 9,702,000 AAA 1,265 Ser. CW, 3.60%, 8/01/06, FGIC ........................................... No Opt. Call 1,322,557 Honolulu City & Cnty., GO, Ser. A, AAA 2,275 4.00%, 9/01/06, FSA ..................................................... No Opt. Call 2,405,267 AAA 3,500 5.80%, 1/01/07, FGIC .................................................... No Opt. Call 3,894,415 ------------ 23,560,440 ------------ ILLINOIS--19.4% Champaign Cnty. Cmnty. Unit Sch. Dist., No. 116, Ser. C, FGIC, AAA 1,065 Zero Coupon, 1/01/07 .................................................... No Opt. Call 987,968 AAA 2,760 Zero Coupon, 1/01/08 .................................................... No Opt. Call 2,466,557 AAA 12,000 Chicago, GO, Ser. A, 4.25%, 1/01/07, MBIA ................................. No Opt. Call 12,800,400 AAA 2,665 Chicago Park Dist., Parking Rev., GO, Ser. A, 3.00%, 1/01/07, FGIC ........ No Opt. Call 2,746,576 AAA 1,565 Chicago Wstwtr. Trans., Ser. A, 3.50%, 1/01/07, AMBAC ..................... No Opt. Call 1,635,503 AAA 7,220 Cook Cnty. Cmnty. Sch. Dist., Zero Coupon, 12/01/07, FGIC ................. No Opt. Call 6,507,530 Du Page Cnty., Trans. Rev., FSA, AAA 4,815 4.50%, 1/01/07 .......................................................... No Opt. Call 5,170,925 AAA 5,390 4.50%, 1/01/09 .......................................................... No Opt. Call 5,848,743 Illinois, GO, Ser. I, AAA 15,080 3.25%, 11/01/06, FGIC ................................................... No Opt. Call 15,678,224 AAA 4,000 4.00%, 4/01/07, FSA ..................................................... No Opt. Call 4,246,800 AAA 12,625 4.25%, 4/01/07, MBIA .................................................... No Opt. Call 13,502,311 AAA 10,915 Illinois Hlth. Facs. Auth., Sisters Svcs. Inc., Ser. C, 6.625%, 6/01/06, MBIA .................................................................... 01/04 @ 101 11,046,526 Illinois Sales Tax, Ser. O, AAA 5,900 Zero Coupon, 6/15/07 .................................................... No Opt. Call 5,398,087 AAA 5,635 Zero Coupon, 6/15/08 .................................................... No Opt. Call 4,951,531 AAA 1,000 Kane Cnty., GO, 3.75%, 1/01/07, FGIC ...................................... No Opt. Call 1,052,260 AAA 2,000 Will Cnty. Cmnty. Sch. Dist., 7.05%, 12/01/08, AMBAC ...................... No Opt. Call 2,415,900 ------------ 96,455,841 ------------ INDIANA--2.8% AAA 5,000 Indiana Bond Bank, Sch. Fund, 4.00%, 2/01/07, AMBAC ....................... No Opt. Call 5,287,050 AAA 9,000 Indiana Univ., Student Fee Rev., Zero Coupon, 8/01/06, AMBAC .............. No Opt. Call 8,495,010 ------------ 13,782,060 ------------ IOWA--0.8% AAA 3,940 West Des Moines Cmnty. Sch. Dist., 4.00%, 6/01/07, AMBAC .................. No Opt. Call 4,196,573 ------------ KENTUCKY--3.9% AAA 12,610 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/07, MBIA ............................................. No Opt. Call 11,420,372 Kentucky Ppty. & Bldgs. Auth., Proj. No. 69, FSA, AAA 2,035 Ser. B, 4.00%, 8/01/06 .................................................. No Opt. Call 2,149,001 AAA 5,560 Ser. C, 4.00%, 8/01/06 .................................................. No Opt. Call 5,871,471 ------------ 19,440,844 ------------ LOUISIANA--4.3% AAA 3,555 Louisiana Off. Facs. Corp. Lease, Cap. Complex Prg., 4.00%, 5/01/07, AMBAC .......................................................... No Opt. Call 3,777,472 AAA 4,565 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. A, 3.00%, 5/15/07, MBIA .................................................... No Opt. Call 4,691,496 AAA 7,630(3) MuniMae Trust, Ser. 7, Cl. A, 4.40%, 12/16/08 ............................. N/A 7,803,430 AAA 5,250 New Orleans, GO, Zero Coupon, 9/01/06, AMBAC .............................. No Opt. Call 4,947,442 ------------ 21,219,840 ------------ MASSACHUSETTS--2.6% AAA 11,760 Massachusetts, GO, Ser. A, 5.25%, 1/01/09, FSA ............................ No Opt. Call 13,152,972 ------------ MICHIGAN--3.7% AAA 1,270 Detroit, GO, 3.00%, 4/01/07, MBIA ......................................... No Opt. Call 1,309,980 AAA 2,100 Grand Rapids Wtr. Sply., 4.00%, 1/01/07, FGIC ............................. No Opt. Call 2,224,908 Michigan Mun. Bd. Auth., AAA 5,000 Zero Coupon, 5/15/06, MBIA .............................................. No Opt. Call 4,771,850 AAA 1,165(3) Ser. G, 6.35%, 11/01/04, AMBAC .......................................... N/A 1,238,325 AAA 675 Ser. G, 6.35%, 11/01/06, AMBAC .......................................... 11/04 @ 102 715,574
See Notes to Financial Statements. 32
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== MICHIGAN (CONTINUED) Michigan Pub. Pwr. Agcy., Belle River Proj., Ser. A, MBIA, AAA $ 1,000 2.70%, 1/01/07 .......................................................... No Opt. Call $ 1,021,940 AAA 2,000 5.00%, 1/01/07 .......................................................... No Opt. Call 2,176,720 AAA 4,850 Michigan Trunk Line, Ser. A, 4.00%, 11/01/06, FSA ......................... No Opt. Call 5,144,686 ------------ 18,603,983 ------------ MINNESOTA--2.1% AAA 5,075 Met. Council Minneapolis-St. Paul, GO, 5.25%, 12/01/06 .................... No Opt. Call 5,572,502 Minneapolis Spec. Sch. Dist. No. 1, COP, FSA, AAA 1,150 Ser. A, 3.00%, 2/01/07 .................................................. No Opt. Call 1,187,191 AAA 840 Ser. B, 3.25%, 2/01/07 .................................................. No Opt. Call 873,390 AAA 2,610 Minnesota Hsg. Fin. Auth., Ser. D, 5.35%, 8/01/06, MBIA ................... 02/05 @ 102 2,724,005 ------------ 10,357,088 ------------ MISSISSIPPI--0.4% AAA 1,935 Vicksburg, GO, 4.00%, 4/01/07, MBIA ....................................... No Opt. Call 2,053,132 ------------ NEBRASKA--0.8% AAA 3,850 Douglas Cnty. Sch. Dist. No. 17 Millard, GO, 3.20%, 11/15/06, FSA ......... No Opt. Call 4,001,652 ------------ NEVADA--1.4% AAA 2,975 Clark Cnty., Library Dist., GO, 4.00%, 2/01/07, FGIC ...................... No Opt. Call 3,156,743 AAA 2,005 Las Vegas, GO, Pub. Safety Bonds, 4.00%, 4/01/07, FSA ..................... No Opt. Call 2,130,653 Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC, AAA 800 Zero Coupon, 1/01/07 .................................................... No Opt. Call 742,576 AAA 1,295 Zero Coupon, 1/01/08 .................................................... No Opt. Call 1,159,129 ------------ 7,189,101 ------------ NEW JERSEY--3.7% AAA 205 Elizabeth, GO, 6.60%, 8/01/06, MBIA ....................................... 01/04 @ 100 205,793 AAA 1,000 Monmouth Cnty. Impvt. Auth., Gov't. Loan, 2.34%, 12/01/06, FSA ............ No Opt. Call 1,015,480 AAA 8,565 New Jersey Hwy. Auth., Garden St. Pkwy., 5.00%, 1/01/07, FGIC ............. ETM 9,337,478 AAA 5,000 New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 5.125%, 6/15/07, AMBAC .......................................................... 06/05 @ 102 5,342,650 AAA 1,065 No. Jersey Dist. Wtr. Sply., Wanaque So. Proj., 6.50%, 7/01/06, MBIA ...... ETM 1,136,206 AAA 1,250 Warren Cnty. Fin. Auth., PCR, 6.55%, 12/01/06, MBIA ....................... 06/04 @ 101 1,288,275 ------------ 18,325,882 ------------ NEW MEXICO--1.2% AAA 3,535 Gallup, PCR, Plains Elec. Generation, 6.50%, 8/15/07, MBIA ................ 01/04 @ 101 3,589,792 AAA 2,405 New Mexico Fin. Auth., Pub. Proj., Ser. A, 3.50%, 6/01/07, MBIA ........... No Opt. Call 2,456,974 ------------ 6,046,766 ------------ NEW YORK--10.5% AAA 1,040 Malone Ctrl. Sch. Dist., GO, Ser. B, 2.875%, 1/15/07, FGIC ................ No Opt. Call 1,069,047 AAA 2,800 Nassau Cnty., GO, Ser. Y, 5.00%, 3/01/06, FGIC ............................ No Opt. Call 2,996,280 New York City, GO, AAA 13,000 Ser. A, 7.00%, 8/01/07, FSA ............................................. 08/06 @ 101.5 14,710,020 AAA 10,000 Ser. E, 6.125%, 8/01/06, MBIA ........................................... No Opt. Call 11,049,200 AAA 2,000 New York City Hlth. & Hosp. Corp., Hlth. Sys. Svcs., Ser. A, 3.20%, 2/15/07, FSA ............................................................ No Opt. Call 2,068,280 AAA 2,460 New York Dorm. Auth., Hosp. Rev., 3.00%, 2/15/07, XLCA .................... No Opt. Call 2,529,249 New York Env. Fac. Corp., PCR, AAA 3,690(3) Ser. D, 6.40%, 11/15/04 ................................................. N/A 3,931,326 AAA 810 Ser. D, 6.40%, 5/15/06 .................................................. 11/04 @ 102 860,568 AAA 9,220 New York Hsg. Fin. Agcy., Hsg. Proj. Mtge., Ser. A, 5.50%, 11/01/06, FSA .. 05/06 @ 102 9,861,528 Rochester, Ser. B, MBIA, AAA 1,805 4.00%, 2/15/07 .......................................................... ETM 1,922,794 AAA 1,465 4.00%, 2/15/07 .......................................................... No Opt. Call 1,554,673 ------------ 52,552,965 ------------ NORTH CAROLINA--1.3% AAA 6,000 No. Carolina Eastn. Mun. Pwr. Agcy., Sys. Rev., Ser. B, 6.00%, 1/01/06, CAPMAC ......................................................... No Opt. Call 6,516,540 ------------ OHIO--5.3% AAA 1,000 Amer. Muni. Pwr. Inc., Omega JU2 Proj., 4.00%, 1/01/07, AMBAC ............. No Opt. Call 1,060,980 AAA 2,170 Cincinnati City Sch. Dist., GO, Sch. Impvt., 4.00%, 12/01/06, MBIA ........ No Opt. Call 2,308,837 AAA 1,285 Milford Sch. Dist., GO, Sch. Impvt., 3.25%, 12/01/06, FSA ................. No Opt. Call 1,340,049
See Notes to Financial Statements. 33
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== OHIO (CONTINUED) Ohio Bldg. Auth., Ser. A, FSA, AAA $ 4,585 Admin. Bldg. Fd., 5.00%, 10/01/06 ....................................... No Opt. Call $ 4,983,849 AAA 10,000 Correction Facs., 5.00%, 10/01/06 ....................................... No Opt. Call 10,869,900 AAA 5,400 Ohio Wtr. Dev. Auth., Pure Wtr., 3.00%, 6/01/07, AMBAC .................... No Opt. Call 5,587,542 ------------ 26,151,157 ------------ OKLAHOMA--1.5% AAA 6,660 Oklahoma Trans. Auth., Tpke. Sys. Rev., Ser. B, 5.00%, 1/01/07, AMBAC ..... No Opt. Call 7,258,601 ------------ OREGON--1.3% AAA 2,020 Oregon Dept. of Admin. Svcs., COP, Ser. A, 5.00%, 11/01/06, FSA ........... No Opt. Call 2,180,651 AAA 2,065 Portland Swr. Sys., Ser. A, 5.00%, 6/01/07, FSA ........................... No Opt. Call 2,272,057 AAA 2,000 Washington & Clackamas Cntys. Sch. Dist., GO, 3.125%, 6/15/07, MBIA ....... No Opt. Call 2,078,520 ------------ 6,531,228 ------------ PENNSYLVANIA--5.0% AAA 1,500 Delaware Cnty. Regl. Wtr. Qual. Ctrl. Auth., Swr. Rev., 4.00%, 5/01/07, FGIC No Opt. Call 1,596,345 AAA 1,345 Fleetwood Area Sch. Dist., GO, 4.00%, 4/01/07, FGIC ....................... No Opt. Call 1,429,291 AAA 1,615 Oxford Area Sch. Dist., GO, Ser. A, 4.00%, 2/15/07, FGIC .................. No Opt. Call 1,714,856 AAA 1,900 Pennsylvania Dept. of Gen. Svcs., COP, 4.25%, 5/01/06, FSA ................ No Opt. Call 2,010,580 AAA 2,375 Pennsylvania Tpke. Comm., Ser. T, 4.125%, 12/01/06, FGIC .................. No Opt. Call 2,531,845 Philadelphia, GO, FSA, AAA 1,000 4.00%, 9/15/06 .......................................................... No Opt. Call 1,058,070 AAA 3,100 4.05%, 9/15/07 .......................................................... No Opt. Call 3,314,706 AAA 2,950 Philadelphia Wtr. & Wst., 5.50%, 6/15/06, MBIA ............................ No Opt. Call 3,218,450 AAA 3,620 Pittsburgh Pub. Parking Auth., Parking Rev., 2.75%, 12/01/06, AMBAC ....... No Opt. Call 3,718,862 Pocono Mtn. Sch. Dist., GO, FSA, AAA 875 4.50%, 4/01/07 .......................................................... No Opt. Call 943,477 AAA 3,025 4.50%, 10/01/07 ......................................................... No Opt. Call 3,285,604 ------------ 24,822,086 ------------ RHODE ISLAND--1.1% AAA 1,865 Providence, GO, Ser. C, 3.75%, 1/15/07, FGIC .............................. No Opt. Call 1,963,696 AAA 3,400 Rhode Island & Providence Plantations, GO, Ser. A, 4.00%, 12/01/06, FSA ... No Opt. Call 3,612,568 ------------ 5,576,264 ------------ SOUTH CAROLINA--0.8% AAA 1,715 Lexington Cnty. Sch. Dist. No. 1, COP, 3.00%, 3/01/07, AMBAC .............. No Opt. Call 1,772,967 AAA 2,070 Pickens Cnty. Sch. Dist., GO, Ser. B, 2.25%, 3/01/07, FGIC ................ No Opt. Call 2,092,687 ------------ 3,865,654 ------------ TEXAS--15.9% AAA 6,575 Austin Wtr. & Wstwtr. Sys., Ser. C, 3.75%, 11/15/06, FSA .................. No Opt. Call 6,930,510 AAA 2,400 Corpus Christi, Gen. Impvt., GO, Ser. A, 5.00%, 3/01/07, FSA .............. No Opt. Call 2,621,184 AAA 1,095 Corpus Christi Bus. & Job Dev., Corp. Sales Tax Rev., 4.00%, 3/01/07, AMBAC No Opt. Call 1,161,915 AAA 8,500 Cypress-Fairbanks Indpt. Sch. Dist., GO, Zero Coupon, 8/01/06, AMBAC ...... No Opt. Call 8,049,670 AAA 6,355 Dallas Rapid Transit, 3.70%, 12/01/06, AMBAC .............................. No Opt. Call 6,694,929 AAA 1,305 Dallas Wtrwrks. & Swr. Sys., 3.00%, 4/01/07, FSA .......................... No Opt. Call 1,344,020 AAA 2,280 Denton Util. Sys., Mult. Util. Impvt., 4.25%, 12/01/06, AMBAC ............. No Opt. Call 2,437,274 AAA 3,445 El Paso Cnty., GO, 4.00%, 2/15/07, FSA .................................... No Opt. Call 3,654,801 AAA 1,000 Houston Area Wtr. Corp., Northeast Wtr. Purification Proj., 4.00%, 3/01/07, FGIC ........................................................... No Opt. Call 1,061,110 AAA 6,285(3) MuniMae Trust, Ser. 10, Cl. A, 4.40%, 7/25/08 ............................. N/A 6,427,858 AAA 2,915 Odessa Texas Wtr. & Swr., 4.25%, 4/01/07, FSA ............................. No Opt. Call 3,115,669 Round Rock Indpt. Sch. Dist., GO, Ser. A, AAA 2,465 4.25%, 8/01/06 .......................................................... No Opt. Call 2,619,161 AAA 1,000 4.25%, 8/01/07 .......................................................... No Opt. Call 1,074,620 AAA 8,115 San Antonio Elec. & Gas, Ser. B, Zero Coupon, 2/01/08, FGIC ............... ETM 7,299,361 AAA 1,000 Sugar Land, GO, 2.50%, 2/15/07, FGIC ...................................... No Opt. Call 1,015,890 AAA 5,000 Tarrant Regl. Wtr. Dist., Impvt., 3.00%, 3/01/07, FSA ..................... No Opt. Call 5,153,500 AAA 15,000 Texas Mun. Pwr. Agcy., Zero Coupon, 9/01/06, AMBAC ........................ No Opt. Call 14,198,850 AAA 1,000 Texas Pub. Fin. Auth., 3.00%, 2/01/07, FGIC ............................... No Opt. Call 1,029,920 AAA 3,000 Texas Tech. Univ., Ser. 6, 4.25%, 2/15/07, AMBAC .......................... No Opt. Call 3,203,340 ------------ 79,093,582 ------------
See Notes to Financial Statements. 34
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== UTAH--5.6% Utah, GO, Ser. B, AAA $ 5,950 4.50%, 7/01/06 .......................................................... No Opt. Call $ 6,353,886 AAA 20,000 4.50%, 7/01/07 .......................................................... No Opt. Call 21,640,400 ------------ 27,994,286 ------------ WASHINGTON--9.6% AAA 1,325 Benton Cnty. Pub. Util. Dist., Elec. Rev., 3.75%, 11/01/06, FSA ........... No Opt. Call 1,395,689 AAA 3,000 Clark Cnty. Pub. Util., Dist. No. 1, Elec. Rev., 4.00%, 1/01/07, AMBAC .... No Opt. Call 3,173,970 King Cnty., AAA 2,090 GO, 3.50%, 12/01/06, MBIA ............................................... No Opt. Call 2,190,027 AAA 3,085 Swr. Rev., 3.50%, 1/01/07, FGIC ......................................... No Opt. Call 3,219,383 AAA 2,100 Kitsap Cnty., GO, Ser. B, 4.00%, 12/01/06, AMBAC .......................... No Opt. Call 2,230,074 Seattle, GO, Ser. E, MBIA, AAA 1,700 Zero Coupon, 12/15/07 ................................................... No Opt. Call 1,530,051 AAA 1,345 Zero Coupon, 12/15/08 ................................................... No Opt. Call 1,158,152 Snohomish Cnty. Pub. Util. Dist., Elec. Rev., AAA 5,620 4.125%, 12/01/06, FSA ................................................... No Opt. Call 5,987,885 AAA 1,250 6.55%, 1/01/07, FGIC .................................................... ETM 1,280,338 AAA 3,890 Tacoma Elec. Sys., Ser. A, 4.00%, 1/01/07, FSA ............................ No Opt. Call 4,115,581 AAA 3,360 Thurston Cnty. Sch. Dist. No. 3, GO, 4.25%, 12/01/06, FSA ................. No Opt. Call 3,591,773 AAA 5,000 Washington, GO, Ser. B, 5.00%, 1/01/08, MBIA .............................. No Opt. Call 5,516,800 AAA 12,875 Washington Pub. Pwr. Sply., Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/06, MBIA ........................................................... No Opt. Call 12,238,460 ------------ 47,628,183 ------------ WEST VIRGINIA--1.7% AAA 5,300 West Virginia, GO, 4.00%, 6/01/06, FSA .................................... No Opt. Call 5,576,395 West Virginia Econ. Dev. Auth., Correctional Juvenille & Pub., MBIA, AAA 1,000 Ser. B, 4.00%, 6/01/06 .................................................. No Opt. Call 1,053,910 AAA 1,500 Ser. A, 4.00%, 6/01/07 .................................................. No Opt. Call 1,596,150 ------------ 8,226,455 ------------ WISCONSIN--5.6% AAA 1,380 Appleton Wtrwks., Ser. B, 4.00%, 1/01/07, FGIC ............................ No Opt. Call 1,460,026 AAA 5,000 Kenosha, GO, Ser. B, Zero Coupon, 10/15/08, FSA ........................... No Opt. Call 4,376,200 AAA 1,275 Milwaukee, GO, Ser. W, 4.00%, 3/15/07, FSA ................................ No Opt. Call 1,353,846 Wisconsin, AAA 880 COP, Ser. A, 3.75%, 3/01/07, FSA ........................................ No Opt. Call 927,089 AAA 12,780 COP, Ser. A, 3.75%, 9/01/07, FSA ........................................ No Opt. Call 13,499,003 AAA 6,085 GO, Ser. G, 4.00%, 5/01/07, MBIA ........................................ No Opt. Call 6,455,089 ------------ 28,071,253 ------------ TOTAL LONG-TERM INVESTMENTS (COST $708,414,196) 752,444,169 ------------ SHORT-TERM INVESTMENTS--7.4% FLORIDA--0.0% F1+ 200(4) Orange Cnty. Florida Sch. Brd., COP, Ser. B, 1.30%, 1/02/04, FRDD ......... N/A 200,000 ------------ GEORGIA--2.4% F1+ 4,585(4) De Kalb County Hsg. Auth., 1.26%, 1/02/04, FRWD ........................... N/A 4,585,000 A1+ 7,345(4) Mun. Elec. Auth., Proj. 1, Ser. C, 1.05%, 1/07/04, MBIA, FRWD ............. N/A 7,345,000 ------------ 11,930,000 ------------ MASSACHUSETTS--2.2% A1+ 11,200(4) Massachusetts St. Dev. Fin. Agcy. Rev., Boston Univ., Ser. R-2, 1.16%, 1/02/04, XLCA ........................................................... N/A 11,200,000 ------------ TEXAS--1.6% Brownsville Util. Sys., Ser. A, MBIA, FRWD, A1+ 765(4) Zero Coupon, 10/09/03 ................................................... N/A 765,000 A1 7,000(4) 1.10%, 1/07/04 .......................................................... N/A 7,000,000 ------------ 7,765,000 ------------ PUERTO RICO--0.5% A1 2,500(4) Puerto Rico Comnwlth. Hwy. & Transp. Auth., Transp. Rev., Ser. A, 1.10%, 1/07/04, AMBAC ................................................... N/A 2,500,000 ------------
See Notes to Financial Statements. 35
SHARES (000) DESCRIPTION VALUE ================================================================================================================================== MONEY MARKET FUND--0.7% 3,350 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ $ 3,350,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $36,945,000) ........................... 36,945,000 ------------ TOTAL INVESTMENTS--158.4% (COST $745,359,196) ............................. $789,389,169 Other assets in excess of liabilities--1.6% 8,061,001 Preferred shares at redemption value, including dividends payable--(60.0)% (299,167,156) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $498,283,014 ============
---------- (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. 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. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation CAPMAC -- Capital Markets Assurance Company COP -- Certificate of Participation CONNIE LEE -- College Construction Loan Insurance Association ETM -- Escrowed to Maturity 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 XLCA -- XL Capital Assurance -------------------------------------------------------------------------------- See Notes to Financial Statements. 36 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK STRATEGIC MUNICIPAL TRUST (BSD)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--151.3% ALABAMA--14.2% AAA $ 7,000 Alabama Pub. Sch. & Coll. Auth., Cap. Impvt., Ser. C, 5.75%, 7/01/18 ...... 07/09 @ 101.5 $ 7,925,610 Baa2 3,000 Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.70%, 11/01/29 ......................................................... 11/09 @ 101 3,209,850 AAA 4,635(3) Jefferson Cnty. Swr., Ser. D, 5.75%, 02/01/07, FGIC ....................... N/A 5,211,270 ------------ 16,346,730 ------------ ALASKA--1.0% AAA 1,130 Alaska Hsg. Fin. Corp., Ser. A, 5.875%, 12/01/24, MBIA .................... 12/05 @ 102 1,163,391 ------------ CALIFORNIA--6.6% Golden St. Tobacco Sec. Corp., Ser. B, A- 4,600 5.50%, 6/01/43 .......................................................... 06/13 @ 100 4,478,376 A- 3,100 5.625%, 6/01/38 ......................................................... 06/13 @ 100 3,088,902 ------------ 7,567,278 ------------ COLORADO--1.8% AAA 10,000 Northwest Pkwy. Pub. Hwy. Auth., Ser B, Zero Coupon, 6/15/30, FSA ......... 06/11 @ 31.387 2,092,000 ------------ CONNECTICUT--8.4% Mashantucket Western Pequot Tribe, Spec. Rev., BBB- 1,500 Ser. A, 5.50%, 9/01/28 .................................................. 09/09 @ 101 1,511,985 Baa3 8,000(4) Ser. B, 5.75%, 9/01/27 .................................................. 09/07 @ 102 8,153,040 ------------ 9,665,025 ------------ DELAWARE--1.9% NR 2,000(4) Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/50 .................. 11/10 @ 100 2,186,720 ------------ FLORIDA--6.9% Florida Hsg. Fin. Corp., Sunset Place, Ser. K-1, A 2,400 6.00%, 10/01/19 ......................................................... 10/09 @ 102 2,496,000 A 2,000 6.10%, 10/01/29 ......................................................... 10/09 @ 102 2,079,180 NR 3,300 Hillsborough Cnty. Ind. Dev. Auth., National Gypsum, Ser. A, 7.125%, 4/01/30 10/10 @ 101 3,412,662 ------------ 7,987,842 ------------ ILLINOIS--9.9% AAA 5,000 Chicago Brd. of Ed., Sch. Reform, 5.75%, 12/01/27, AMBAC .................. 12/07 @ 102 5,494,200 B 7,560 Chicago O'Hare Intl. Arpt., Delta Air Lines Inc. Term. Proj., 6.45%, 5/01/18 01/04 @ 101 5,964,084 ------------ 11,458,284 ------------ IOWA--0.8% BBB 1,000 Tobacco Settlement Auth., Tobacco Settlement Rev., Ser. B, 5.30%, 6/01/25 . 06/11 @ 101 866,210 ------------ KENTUCKY--9.6% AAA 32,345 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/24, MBIA .................................................. No Opt. Call 11,115,359 ------------ MARYLAND--3.8% NR 4,000(4) MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 .................. 06/09 @ 100 4,322,000 ------------ MICHIGAN--9.2% AAA 2,000 Michigan Hosp. Fin. Auth., Mercy Hlth. Svcs., 5.75%, 8/15/19, MBIA ........ 08/09 @ 101 2,239,060 BB 8,000 Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 ......................... 07/07 @ 101 8,344,960 ------------ 10,584,020 ------------ MISSOURI--1.8% A 2,000 Missouri Hlth. & Edl. Facs. Auth., Hlth. Facs. Rev., St. Anthony's Med. Ctr., 6.125%, 12/01/19 .................................................. 12/10 @ 101 2,120,180 ------------ NEW JERSEY--10.7% B 6,000 New Jersey Econ. Dev. Auth., Continental Airlines Inc. Proj., 6.25%, 9/15/19 09/09 @ 101 5,204,460 AAA 6,000(3) New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 6.00%, 6/15/10 . N/A 7,147,740 ------------ 12,352,200 ------------ NEW YORK--8.5% New York City Transl. Fin. Auth., Ser. B, AA+ 4,885(3) 6.00%, 5/15/10 .......................................................... N/A 5,865,224 AA+ 1,115 6.00%, 11/15/21 ......................................................... 05/10 @ 101 1,282,228 Aa1 2,500 New York Mtge. Agcy., Homeowner Mtge., Ser. 85, 5.70%, 10/01/17 ........... 09/09 @ 100 2,671,250 ------------ 9,818,702 ------------
See Notes to Financial Statements. 37
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== PENNSYLVANIA--17.3% Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp., Ba2 $ 2,250 6.00%, 11/01/23 ......................................................... 11/08 @ 102 $ 2,203,268 Ba2 2,335 6.20%, 11/01/14 ......................................................... 11/09 @ 102 2,314,405 BBB+ 1,500 Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev., 5.25%, 11/15/28 . 11/08 @ 101 1,437,810 Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A, A3 700 6.125%, 11/01/21 ........................................................ 05/11 @ 101 698,404 A3 1,000 6.25%, 11/01/31 ......................................................... 05/11 @ 101 999,320 A3 1,000 6.50%, 11/01/16 ......................................................... 05/11 @ 101 1,027,780 AAA 8,500 Philadelphia Sch. Dist., GO, Ser. C, 5.75%, 3/01/29, MBIA ................. 03/10 @ 100 9,380,855 AAA 1,500 Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC .. No Opt. Call 1,837,410 ------------ 19,899,252 ------------ SOUTH CAROLINA--2.4% BBB 2,500 South Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., Palmetto Hlth. Alliance, Ser. C, 7.00%, 8/01/30 ........................................ 08/13 @ 100 2,717,300 ------------ TENNESSEE--5.3% Baa1 3,750 Maury Cnty. Ind. Dev. Brd., PCR, Saturn Corp. Proj., 6.50%, 9/01/24 ....... 09/04 @ 102 3,867,075 AAA 2,000 Memphis Shelby Cnty. Arpt. Auth., Ser. D, 6.00%, 3/01/24, AMBAC ........... 03/10 @ 101 2,192,580 ------------ 6,059,655 ------------ TEXAS--15.1% AAA 4,750 Harris Cnty. Houston Sports Auth., Ser. A, Zero Coupon, 11/15/38, MBIA .... 11/30 @ 61.166 696,255 AAA 1,500 Lower Colorado River Auth., Ser. A, 5.50%, 5/15/21, AMBAC ................. 05/09 @ 101 1,648,980 BBB 3,000 Port Corpus Christi Auth., Celanese Proj., Ser. B, 6.70%, 11/01/30 ........ 05/12 @ 101 3,172,770 AAA 15,000 Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/31, AMBAC ......... 08/12 @ 32.807 3,045,000 AA+ 500 Texas Wtr. Fin. Asst., GO, 5.75%, 8/01/22 ................................. 08/10 @ 100 561,135 AAA 7,030(3) Travis Cnty. Hlth. Facs. Dev. Corp., Ascension Hlth., Ser. A, 5.875%, 11/15/09, AMBAC ......................................................... N/A 8,333,784 ------------ 17,457,924 ------------ UTAH--3.9% AAA 4,000 Intermountain Pwr. Agcy., Sply., Ser. B, 5.75%, 7/01/19, MBIA ............. 07/07 @ 102 4,473,320 ------------ VIRGINIA--1.7% AAA 1,750 Virginia Res. Auth., Clean Wtr. Rev., 5.625%, 10/01/22 .................... 10/10 @ 100 1,938,125 ------------ WASHINGTON--6.4% Washington, GO, AA+ 4,750 Ser. A, 5.625%, 7/01/24 ................................................. 07/09 @ 100 5,150,092 AA+ 2,000 Ser. B, 6.00%, 1/01/25 .................................................. 01/10 @ 100 2,274,680 ------------ 7,424,772 ------------ WISCONSIN--4.1% BBB 5,000 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 .......................... 06/12 @ 100 4,697,800 ------------ TOTAL LONG-TERM INVESTMENTS (COST $160,501,692) ........................... $174,314,089 ------------ ----------- SHARES (000) ----------- MONEY MARKET FUND--0.6% 750 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $750,000) ........ N/A 750,000 ------------ TOTAL INVESTMENTS--151.9% (COST $161,251,692) ............................. 175,064,089 Other assets in excess of liabilities--1.9% ............................... 2,195,302 Preferred shares at redemption value, including dividends payable--(53.8)% (62,013,242) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $115,246,149 ============
---------- (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. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of December 31, 2003, the Trust held 12.7% of its net assets, with a current market value of $14,661,760, 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 PCR -- Pollution Control Revenue -------------------------------------------------------------------------------- See Notes to Financial Statements. 38 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST (BFC)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--156.8% CALIFORNIA--144.7% AAA $ 2,635 Alameda Cnty., COP, Ser. A, 3.80%, 12/01/08, MBIA ......................... No Opt. Call $ 2,825,326 Anaheim Union High Sch. Dist., GO, Ser. A, FSA, AAA 1,060 3.50%, 8/01/08 .......................................................... No Opt. Call 1,117,781 AAA 1,250 4.00%, 8/01/09 .......................................................... No Opt. Call 1,345,337 AAA 1,000 Burbank, Elec. Rev., 3.50%, 6/01/09, MBIA ................................. No Opt. Call 1,054,160 California, GO, AAA 2,000 5.00%, 6/01/09, MBIA .................................................... No Opt. Call 2,243,300 AAA 3,000 5.50%, 4/01/09, MBIA .................................................... No Opt. Call 3,427,350 AAA 3,000 5.50%, 2/01/10, MBIA .................................................... No Opt. Call 3,422,040 AAA 2,000 6.25%, 9/01/08, FGIC .................................................... No Opt. Call 2,333,540 AAA 15,000 6.30%, 9/01/08, MBIA .................................................... No Opt. Call 17,534,400 California Dept. of Wtr. Res., AAA 10,000 Pwr. Sply. Rev., Ser. A, 3.125%, 5/01/08, FSA ........................... No Opt. Call 10,320,500 AAA 10,000 Pwr. Sply. Rev., Ser. A, 3.375%, 5/01/09, MBIA .......................... No Opt. Call 10,395,200 AAA 1,000 Wtr. Rev., Central Valley Proj., Ser. Z, 4.00%, 12/01/09, FGIC .......... No Opt. Call 1,080,580 California Hlth. Facs. Fin. Auth., AAA 6,850 Marin Gen. Hosp., Ser. A, 5.75%, 8/01/09, FSA ........................... 01/04 @ 102 7,009,399 AAA 2,000 Sutter Hlth. Care Sys., 5.70%, 8/15/09, MBIA ............................ 08/06 @ 102 2,240,400 AAA 2,100 California Pub. Wks. Brd., Energy Efficiency, Ser. A, 5.625%, 10/01/08, AMBAC ......................................................... 10/05 @ 102 2,285,724 AAA 2,600 Castaic Lake Wtr. Agcy., COP, Wtr. Sys. Impvt. Proj., Ser. A, 7.25%, 8/01/10, MBIA ........................................................... No Opt. Call 3,254,628 AAA 1,135 Chaffey Cmnty. College Dist., GO, Ser. A, 3.75%, 7/01/09, FSA ............. No Opt. Call 1,205,892 Chula Vista, COP, MBIA, Police Fac. Proj., AAA 1,000 4.00%, 8/01/08 .......................................................... No Opt. Call 1,076,130 AAA 1,000 4.00%, 8/01/09 .......................................................... No Opt. Call 1,076,270 AAA 5,500 Clovis Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/08, FGIC ............. ETM 4,905,285 AAA 1,855 El Paso De Robles, GO, Ser. A, Zero Coupon, 8/01/09, FGIC ................. No Opt. Call 1,572,372 AAA 4,025 Elsinore Valley Mun. Wtr. Dist., COP, Ser. A, 6.00%, 7/01/09, FGIC ........ No Opt. Call 4,715,448 AAA 1,055 Glendale Unified Sch. Dist., Ser. D, 3.50%, 9/01/09, MBIA ................. No Opt. Call 1,108,953 Long Beach Bd. of Fin. Auth., Tax Allocation Rev., Redev. Projs., AMBAC, AAA 1,245 3.50%, 8/01/08 .......................................................... No Opt. Call 1,312,865 AAA 1,120 3.75%, 8/01/09 .......................................................... No Opt. Call 1,190,952 AAA 13,110 Los Angeles, GO, Ser. A, 3.50%, 9/01/09, MBIA ............................. No Opt. Call 13,780,445 Los Angeles Cnty., AAA 2,910 Asset Leasing Corp. Rev., 5.95%, 12/01/07, AMBAC ........................ No Opt. Call 3,351,243 AAA 8,090 Asset Leasing Corp. Rev., 6.00%, 12/01/08, AMBAC ........................ No Opt. Call 9,455,916 AAA 8,600 Asset Leasing Corp. Rev., 6.05%, 12/01/09, AMBAC ........................ No Opt. Call 10,202,868 AAA 4,405 Met. Trans. Auth. Rev., Spl. Benefit Assmt. Dist. A1, 3.75%, 9/01/08, AMBAC ................................................................. No Opt. Call 4,697,800 AAA 9,835 Sanitation Dists. Fin. Auth. Rev., Cap. Proj., Ser. A, 4.00%, 10/01/09, FSA ......................................................... No Opt. Call 10,606,163 AAA 6,000 Los Angeles Dept. of Arpts., Arpt. Rev., LA Intl. Arpt., Ser. B, 5.00%, 5/15/09, MBIA ......................................................... No Opt. Call 6,740,220 AAA 3,860 Los Angeles Sanitation Equip., Ser. A, 3.625%, 2/01/09, FSA ............... No Opt. Call 4,079,557 Los Angeles Unified Sch. Dist., FSA, AAA 2,660 Ser. B, 3.00%, 10/01/08 ................................................. No Opt. Call 2,750,626 AAA 7,500 Ser. F, 3.00%, 7/01/09 .................................................. No Opt. Call 7,681,725 AAA 1,000 Mount Diablo Unified Sch. Dist., GO, 3.50%, 8/01/08, FSA .................. No Opt. Call 1,054,510 AAA 1,000 Orange Cnty. Local Trans. Auth., Sales Tax Rev., 6.00%, 2/15/09, MBIA ..... No Opt. Call 1,168,200 AAA 2,495 Pasadena Unified Sch. Dist., Ser. C, 3.50%, 11/01/08, FSA ................. No Opt. Call 2,638,213 AAA 3,345 Sacramento City Fin. Auth., City Hall & Redev. Projs., Ser. A, 3.50%, 12/01/08, FSA ........................................................... No Opt. Call 3,540,214 AAA 1,000 Sacramento City Unified Sch. Dist., 3.50%, 7/01/09, FGIC .................. No Opt. Call 1,049,720 Sacramento Mun. Util. Dist., Elec. Rev., Ser. C, AAA 825 5.75%, 11/15/07, MBIA ................................................... ETM 845,452 AAA 3,750 5.75%, 11/15/08, FGIC ................................................... ETM 3,885,000 AAA 3,950 5.75%, 11/15/09, MBIA ................................................... ETM 4,048,513 AAA 5,000 San Bernardino Cnty., Trans. Auth., Sales Tax Rev., 6.00%, 3/01/10, FGIC .. ETM 5,474,150
See Notes to Financial Statements. 39
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== CALIFORNIA (CONTINUED) San Diego Cnty., AAA $ 2,360 COP, 5.00%, 2/01/09, AMBAC .............................................. No Opt. Call $ 2,648,250 AAA 11,000 COP, 5.625%, 9/01/12, AMBAC ............................................. No Opt. Call 12,774,850 AAA 7,830 Regl. Trans. Comm., Sales Tax Rev., Ser. A, 6.00%, 4/01/08, MBIA ........ ETM 7,911,902 AAA 2,500 Regl. Trans. Comm., Sales Tax Rev., Ser. A, 6.00%, 4/01/08, FGIC ........ ETM 2,526,150 AAA 12,725 San Diego Pub. Facs. Fin. Auth., Wtr. Rev., 3.00%, 8/01/09, MBIA .......... No Opt. Call 13,037,780 AAA 1,250 San Francisco City & Cnty., GO, 4.00%, 6/15/09, FSA ....................... No Opt. Call 1,349,875 AAA 1,000 San Jose Redev. Agcy., 4.00%, 8/01/09, MBIA ............................... No Opt. Call 1,073,580 AAA 1,000 San Mateo Cnty. Cmnty. College Dist., GO, Ser. A, 3.30%, 9/01/08, FGIC .... No Opt. Call 1,046,670 Santa Ana Unified Sch. Dist., GO, Ser. B, FGIC, AAA 1,000 Zero Coupon, 8/01/08 .................................................... No Opt. Call 887,860 AAA 2,000 Zero Coupon, 8/01/09 .................................................... No Opt. Call 1,695,280 AAA 4,030 Santa Barbara Cnty., Local Transp. Auth., Sales Tax Rev., 3.00%, 3/15/09, FSA ............................................................ No Opt. Call 4,142,236 AAA 2,470 Santa Clara, COP, Ser. B, 3.50%, 2/01/09, AMBAC ........................... No Opt. Call 2,595,847 AAA 2,865(3) Santa Clara Cnty. Fin. Auth., Fac. Replacement Proj. A, 6.50%, 11/15/04, AMBAC ......................................................... N/A 3,054,806 AAA 4,620 Santa Clara Valley Wtr. Dist., COP, 4.00%, 2/01/09, FGIC .................. No Opt. Call 4,965,022 AAA 4,665 So. Coast Air Quality Mgmt. Dist. Bldg. Corp., 4.00%, 8/01/09, AMBAC ...... No Opt. Call 5,020,800 Univ. of California, AAA 2,500 Ser. A, 5.00%, 5/15/09, AMBAC ........................................... No Opt. Call 2,821,525 AAA 2,000 Ser. F, 5.00%, 9/01/11, FGIC ............................................ 09/06 @ 101 2,175,900 AAA 1,845 West Sacramento Fin. Auth., Wtr. Sys. Impvt., 5.25%, 8/01/08, FGIC ........ 02/04 @ 101 1,868,985 ------------ 258,701,685 ------------ PUERTO RICO--12.1% Puerto Rico Elec. Pwr. Auth., AAA 7,000 Ser. DD, 5.00%, 7/01/10, FSA ............................................ 07/08 @ 101.5 7,861,630 AAA 3,000 Ser. KK, 4.50%, 7/01/09, XLCA ........................................... No Opt. Call 3,311,760 AAA 5,280 Ser. DD, 5.00%, 7/01/09, FSA ............................................ 07/08 @ 101.5 5,915,501 AAA 4,000 Puerto Rico Mun. Fin. Agcy., Ser. A, 5.625%, 8/01/10, FSA ................. 08/09 @ 101 4,612,640 ------------ 21,701,531 ------------ TOTAL INVESTMENTS--156.8% (COST $260,437,492) ............................. $280,403,216 Other assets in excess of liabilities--1.7% ............................... 3,036,531 Preferred shares at redemption value, including dividends payable--(58.5)% (104,586,175) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $178,853,572 ============
---------- (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. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 100.0% of the Trust's total investments. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association XLCA -- XL Capital Assurance -------------------------------------------------------------------------------- See Notes to Financial Statements. 40 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST (BJZ)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--147.7% CALIFORNIA--123.7% BBB+ $ 2,100 ABAG Fin. Auth. for Nonprofit Corps., San Diego Hosp. Assoc., Ser. C, 5.375%, 3/01/21 ......................................................... 03/14 @ 100 $ 2,086,434 California, GO, Baa1 5,000 5.00%, 11/01/20 ......................................................... 11/11 @ 100 5,038,500 AAA 6,500 Ser. BZ, 5.35%, 12/01/21, MBIA .......................................... 06/07 @ 101 6,629,480 California Cnty. Tobacco Sec. Agcy., BBB 5,000 Ser. A, 5.50%, 6/01/33 .................................................. 06/12 @ 100 4,283,550 BBB 5,000 Fresno Cnty. Fdg. Corp., 5.875%, 6/01/27 ................................ 06/12 @ 100 4,706,000 A- 6,500 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.125%, 5/01/19 ... 05/12 @ 101 6,752,720 California Hlth. Fac. Fin. Auth., Adventist Hlth. Sys., Ser. A, A 1,075 5.00%, 3/01/18 .......................................................... 03/13 @ 100 1,097,618 A 1,000 5.00%, 3/01/19 .......................................................... 03/13 @ 100 1,013,590 A 2,060 5.00%, 3/01/20 .......................................................... 03/13 @ 100 2,069,765 A 1,355 5.00%, 3/01/24 .......................................................... 03/13 @ 100 1,329,553 AAA 20,000 California Hsg. Fin. Agcy., Home Mtge. Rev., Ser. T, Zero Coupon, 8/01/21, MBIA ........................................................... 08/11 @ 57.562 7,651,800 California Infrastructure & Econ. Dev., A 1,985 J. David Gladstone Inst. Proj., 5.50%, 10/01/20 ......................... 10/11 @ 101 2,114,104 A 6,500 Kaiser Hosp. Asst. LLC, Ser. A, 5.55%, 8/01/31 .......................... 08/11 @ 102 6,727,695 A2 3,100 California Poll. Ctrl. Fin. Auth., PCR, San Diego Gas & Elec., Ser. A, 5.90%, 6/01/14 .................................................. No Opt. Call 3,371,436 California Pub. Wks. Brd., Ser. A, BBB 2,020 California Cmnty. College, 5.00%, 12/01/17 .............................. 12/08 @ 101 2,050,381 A3 2,415 California St. Univ., 5.00%, 10/01/17 ................................... 10/08 @ 101 2,457,407 A- 2,500 Daly City Hsg. Dev. Fin. Agcy., Sr. Franciscan Acquisition Proj., Ser. A, 5.80%, 12/15/25 ................................................. 12/13 @ 102 2,584,850 AAA 3,395 Fontana Pub. Fin. Auth., Tax Allocation Rev., Fontana Redev. Proj., Ser. A, 5.25%, 9/01/18, FSA ............................................. 09/11 @ 101 3,707,136 BBB 20,000 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., Zero Coupon, 1/15/21 01/10 @ 53.346 7,471,200 Lathrop Fin. Auth., Wtr. Sply. Proj., NR 995 5.80%, 6/01/21 .......................................................... 06/13 @ 100 986,333 NR 1,040 5.85%, 6/01/22 .......................................................... 06/13 @ 100 1,030,682 NR 1,000 5.90%, 6/01/23 .......................................................... 06/13 @ 100 990,820 AAA 5,000 Long Beach Harbor Dept., Ser. A, 5.25%, 5/15/18, FGIC ..................... 05/10 @ 101 5,427,150 AA 5,000 Los Angeles Cnty., Pub. Wks. Fin. Auth., Regl. Pk. & Open Space, Ser. A, 5.00%, 10/01/19 ................................................. 10/07 @ 101 5,212,950 AAA 10,025 Los Angeles Habor Dept., Ser. B, 5.50%, 8/01/21, AMBAC .................... 08/11 @ 100 10,876,824 AAA 5,000 Riverside Unified Sch. Dist., Ser. A, 5.25%, 2/01/23, FGIC ................ 02/12 @ 101 5,304,750 San Bernardino Cnty., Spl. Tax, Cmnty. Facs., NR 105 5.35%, 9/01/17 .......................................................... 09/12 @ 102 102,119 NR 245 5.50%, 9/01/18 .......................................................... 09/12 @ 102 239,206 NR 500 5.60%, 9/01/19 .......................................................... 09/12 @ 102 487,755 NR 355 5.70%, 9/01/20 .......................................................... 09/12 @ 102 346,036 AAA 2,980 San Diego Cnty., COP, 5.25%, 11/01/19, AMBAC .............................. 11/11 @ 100 3,217,864 AAA 2,135 Santa Clara Valley Transp. Auth., Sales Tax Rev., Ser. A, 5.00%, 6/01/18, MBIA ........................................................... 06/11 @ 100 2,262,267 AAA 4,590 Stockton East Wtr. Dist., COP, Ser. B, Zero Coupon, 4/01/19, FGIC ......... 04/12 @ 66.427 2,059,671 BBB 1,000 Tobacco Sec. Auth. No. California, Tobacco Settlement Rev., Ser. A, 5.375%, 6/01/41 ......................................................... 06/11 @ 100 800,690 BBB 6,000 Tobacco Sec. Auth. So. California, Tobacco Settlement Rev., Ser. A, 5.50%, 6/01/36 .......................................................... 06/12 @ 100 5,079,060 ------------ 117,567,396 ------------ DELAWARE--4.5% NR 4,000(3) Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 .................. 06/09 @ 100 4,274,760 ------------ MARYLAND--5.7% NR 5,000(3) MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 06/30/49 ................. 06/09 @ 100 5,402,500 ------------ PUERTO RICO--13.8% A- 4,410 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. C, 5.75%, 7/01/19 ....... No Opt. Call 5,105,722 BBB+ 7,500 Puerto Rico Pub. Fin. Corp., Ser. E, 5.70%, 8/01/25 ....................... 02/10 @ 100 8,046,075 ------------ 13,151,797 ------------ TOTAL LONG-TERM INVESTMENTS (COST $137,935,624) ........................... 140,396,453 ------------
See Notes to Financial Statements. 41
SHARES (000) DESCRIPTION VALUE ================================================================================================================================== MONEY MARKET FUNDS--9.0% 4,750 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ $ 4,750,000 3,800 SSgA Tax Free Money Mkt. Fund ............................................. 3,800,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $8,550,000) ............................ 8,550,000 ------------ TOTAL INVESTMENTS--156.7% (COST $146,485,624) ............................. $148,946,453 Other assets in excess of liabilities--1.7% ............................... 1,628,603 Preferred shares at redemption value, including dividends payable--(58.4)% (55,528,256) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 95,046,800 ============
---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of December 31, 2003, the Trust held 10.2% of its net assets, with a current market value of $9,677,260, 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 PCR -- Pollution Control Revenue -------------------------------------------------------------------------------- See Notes to Financial Statements. 42 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST (BRF)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--155.4% FLORIDA--137.9% AAA $ 1,500 Alachua Cnty. Sch. Dist., GO, 4.25%, 1/01/09, FSA ......................... No Opt. Call $ 1,621,185 AAA 1,765 Collier Cnty. Sch. Brd., COP, Ser. A, 3.50%, 2/15/09, FSA ................. No Opt. Call 1,845,184 Dade Cnty., AAA 1,000 Aviation Rev., 6.00%, 10/01/08, AMBAC ................................... 10/05 @ 102 1,090,650 AAA 5,000 GO, Ser. A, Zero Coupon, 2/01/08, MBIA .................................. 02/06 @ 92.852 4,442,550 AAA 905 GO, Ser. B, Zero Coupon, 10/01/08, AMBAC ................................ ETM 795,929 AAA 1,095 GO, Ser. B, Zero Coupon, 10/01/08, AMBAC ................................ No Opt. Call 963,020 Dade Cnty. Sch. Brd., COP, AAA 5,465(3) Ser. A, 5.75%, 5/01/04, MBIA ............................................ N/A 5,603,756 AAA 1,515 Delray Beach, Decade of Excellence Prog., GO, 3.50%, 2/01/09, FSA ......... No Opt. Call 1,585,538 Escambia Cnty. Util. Sys., Ser. B, FGIC, AAA 1,595 6.125%, 1/01/09 ......................................................... No Opt. Call 1,863,279 AAA 5,235 6.25%, 1/01/12 .......................................................... No Opt. Call 6,292,627 AAA 5,060 6.25%, 1/01/13 .......................................................... No Opt. Call 6,122,954 Florida Brd. of Ed., AAA 8,720 GO, 3.50%, 1/01/09, FSA ................................................. No Opt. Call 9,119,638 AAA 4,190 Lottery Rev., Ser. A, 5.00%, 7/01/08, FGIC .............................. No Opt. Call 4,656,766 Florida Dept. of Env. Protection Presvtn., Ser. B, FGIC, AAA 5,905 4.00%, 7/01/08 .......................................................... No Opt. Call 6,312,740 AAA 6,140 4.00%, 7/01/09 .......................................................... No Opt. Call 6,572,440 Florida Div. of Bond Fin. Dept., Gen. Svc. Rev., AAA 2,000 Nat. Res. & Presvtn., Ser. A, 5.00%, 7/01/11, AMBAC ..................... 07/07 @ 101 2,171,660 AAA 8,000 Dept. of Env. Presvtn., Ser. B, 5.25%, 7/01/10, FSA ..................... 07/08 @ 101 9,004,240 AAA 1,090 Florida Mun. Loan Council, Ser. C, 3.50%, 11/01/08, MBIA .................. No Opt. Call 1,140,849 AAA 6,000 Greater Orlando Aviation Auth., Orlando Arpt. Facs. Rev., Ser. C, 3.50%, 10/01/08, MBIA ................................................... No Opt. Call 6,266,940 Hillsborough Cnty. Cap Impvt., FGIC, AAA 2,630(3) 6.25%, 8/01/04 .......................................................... N/A 2,733,569 AAA 1,500(3) 6.60%, 8/01/04 .......................................................... N/A 1,562,040 AAA 5,000(3) Hillsborough Cnty. Sch. Brd., COP, 5.875%, 7/01/04, MBIA .................. N/A 5,216,150 AAA 3,000 Hillsborough Cnty. Sch. Dist., Sales Tax Rev., 4.00%, 10/01/09, AMBAC ..... No Opt. Call 3,212,010 AAA 10,000 Hillsborough Cnty. Util., 4.50%, 8/01/08, AMBAC ........................... No Opt. Call 10,895,600 Indian River Cnty. Sch. Dist., GO, FSA, AAA 950 3.25%, 4/01/08 .......................................................... No Opt. Call 987,364 AAA 1,000 3.25%, 4/01/09 .......................................................... No Opt. Call 1,035,820 Indian Trace Cmnty. Dev. Dist., Wtr. Mgmt. Spec. Benefit, Ser. A, MBIA, AAA 3,000 5.625%, 5/01/08 ......................................................... 05/05 @ 102 3,212,820 AAA 2,910 5.75%, 5/01/09 .......................................................... 05/05 @ 102 3,121,150 Jacksonville Beach Utils., AMBAC, AAA 1,100 3.10%, 4/01/09 .......................................................... No Opt. Call 1,131,350 AAA 1,155 3.10%, 10/01/09 ......................................................... No Opt. Call 1,181,634 AAA 5,895 Jacksonville Excise Tax, 4.25%, 10/01/08, AMBAC ........................... No Opt. Call 6,375,678 Jacksonville Sales Tax, AAA 1,155 3.125%, 10/01/08, FGIC .................................................. No Opt. Call 1,191,336 AAA 1,000 3.375%, 10/01/09, FGIC .................................................. No Opt. Call 1,037,610 AAA 2,000 4.10%, 10/01/08, AMBAC .................................................. No Opt. Call 2,149,720 AAA 825 Lake Cnty. Sch. Brd., COP, 3.50%, 7/01/09, AMBAC .......................... No Opt. Call 859,980 AAA 2,000 Lakeland Elec. & Wtr., 5.90%, 10/01/08, FSA ............................... No Opt. Call 2,310,000 AAA 3,000 Lee Cnty. Arprt., 4.25%, 10/01/09, FSA .................................... No Opt. Call 3,233,430 Miami, GO, FGIC, AAA 1,345 5.90%, 12/01/08 ......................................................... No Opt. Call 1,560,469 AAA 1,000 6.00%, 12/01/09 ......................................................... No Opt. Call 1,181,260 Miami Dade Cnty., AAA 2,000 Edl. Fac., Ser. A, 4.875%, 4/01/09, AMBAC ............................... No Opt. Call 2,230,240 AAA 1,535 Pub. Svc. Tax Rev., Pub. Impvt., 3.40%, 4/01/08, AMBAC .................. No Opt. Call 1,604,628 AAA 1,595 Pub. Svc. Tax Rev., Pub. Impvt., 3.625%, 4/01/09, AMBAC ................. No Opt. Call 1,667,732 AAA 4,775 Sch. Brd., COP, 5.25%, 8/01/11, FSA ..................................... 08/08 @ 101 5,326,942
See Notes to Financial Statements. 43
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== FLORIDA (CONTINUED) Orange Cnty., AAA $ 1,000(3) Pub. Svc. Tax Rev., 5.70%, 10/01/05, FGIC ............................... N/A $ 1,093,730 AAA 4,895 Sales Tax Rev., Ser. A, 3.25%, 1/01/09, FGIC ............................ No Opt. Call 5,062,311 AAA 5,130 Tourist Dev., Tax Rev., Ser. A, 4.00%, 10/01/08, AMBAC .................. No Opt. Call 5,479,353 AAA 5,340 Tourist Dev., Tax Rev., Ser. A, 4.00%, 10/01/09, AMBAC .................. No Opt. Call 5,702,693 AAA 1,005 Tourist Dev., Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA ................... ETM 1,162,725 AAA 495 Tourist Dev., Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA ................... No Opt. Call 568,230 Orlando Wst. Wtr. Sys., Ser. A, AMBAC, AAA 1,100 3.25%, 10/01/08 ......................................................... No Opt. Call 1,140,722 AAA 1,280 3.50%, 10/01/09 ......................................................... No Opt. Call 1,336,602 Osceola Cnty., AMBAC, AAA 1,810 3.75%, 10/01/08 ......................................................... No Opt. Call 1,917,297 AAA 1,535 3.875%, 10/01/09 ........................................................ No Opt. Call 1,633,332 Osceola Cnty. Gas Tax, FGIC, AAA 640 3.10%, 4/01/08 .......................................................... No Opt. Call 661,312 AAA 535 3.30%, 4/01/09 .......................................................... No Opt. Call 555,469 AAA 2,000 Osceola Cnty. Trans., Osceola Pkwy. Proj., 5.95%, 4/01/08, MBIA ........... 01/04 @ 101 2,024,740 Palm Beach Cnty. Sch. Brd., COP, Ser. D, FSA, AAA 1,770 3.00%, 8/01/08 .......................................................... No Opt. Call 1,811,931 AAA 850 3.30%, 8/01/09 .......................................................... No Opt. Call 876,469 AAA 7,085 Pasco Cnty. Solid Wst. Disp. & Res. Rec. Sys., 6.00%, 4/01/09, FGIC ....... 01/04 @ 101 7,168,178 Polk Cnty. Sch. Brd., COP, Ser. A, FSA, AAA 2,000 3.20%, 1/01/08 .......................................................... No Opt. Call 2,064,320 AAA 2,000 3.375%, 1/01/09 ......................................................... No Opt. Call 2,070,500 AAA 1,020 Sebring Wtr. & Wstwtr., 3.625%, 1/01/09, FGIC ............................. No Opt. Call 1,072,693 AAA 1,000(3) Seminole Cnty. Sch. Brd., COP, Ser. A, 5.90%, 7/01/04, MBIA ............... N/A 1,043,600 AAA 2,000 Seminole Cnty. Wtr. & Swr., 6.00%, 10/01/09, MBIA ......................... No Opt. Call 2,352,940 So. Florida Wtr. Mgmt. Dist., AMBAC, AAA 1,250 3.00%, 10/01/08 ......................................................... No Opt. Call 1,282,363 AAA 1,000 3.30%, 10/01/09 ......................................................... No Opt. Call 1,033,640 AAA 1,025 St. Johns Cnty. Sch. Brd. COP, Ser. A, 3.50%, 7/01/09, MBIA ............... No Opt. Call 1,069,526 AAA 500 St. Petersburg Hlth. Facs. Auth., All Childrens Hosp., 3.10%, 11/15/08, AMBAC ......................................................... No Opt. Call 513,240 AAA 1,370 Village Ctr. Cmnty. Dev. Dist. Rec., Ser. A, 5.50%, 11/01/08, MBIA ........ No Opt. Call 1,561,101 AAA 2,370 Volusia Cnty., Sales Tax Rev., Ser. B, 4.00%, 10/01/08, MBIA .............. No Opt. Call 2,536,872 ------------ 197,286,366 ------------ PUERTO RICO--17.5% Puerto Rico Mun. Fin. Agcy., Ser. A, FSA, AAA 10,000 3.50%, 8/01/08 .......................................................... No Opt. Call 10,518,400 AAA 12,000 3.75%, 8/01/09 .......................................................... No Opt. Call 12,734,520 AAA 1,500 5.625%, 8/01/10 ......................................................... 08/09 @ 101 1,729,740 ------------ 24,982,660 ------------ TOTAL LONG-TERM INVESTMENTS (COST $209,096,168) ........................... 222,269,026 ------------ --------- SHARES (000) --------- SHORT-TERM INVESTMENTS--0.9% 1,350 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $1,350,000) ...... N/A 1,350,000 ------------ TOTAL INVESTMENTS--156.3% (COST $210,446,168) ............................. 223,619,026 Other assets in excess of liabilities--2.5% ............................... 3,632,579 Preferred shares at redemption value, including dividends payable--(58.8)% (84,169,359) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $143,082,246 ============
---------- (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. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 99.4% of the Trust's total investments. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association -------------------------------------------------------------------------------- See Notes to Financial Statements. 44 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUST (BFO)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--127.8% FLORIDA--113.2% Brandy Creek Cmnty. Dev. Dist., NR $ 1,510 6.35%, 5/01/34 .......................................................... 05/13 @ 101 $ 1,525,432 NR 2,000 Spl. Assmt., Ser. B, 5.40%, 5/01/09 ..................................... No Opt. Call 2,001,240 NR 2,000 Colonial Cntry. Club Cmnty. Dev. Dist., 6.40%, 5/01/33 .................... 05/13 @ 101 2,060,340 NR 5,000 Crossings at Fleming Island, Cmnty. Dev. Dist., 6.75%, 10/01/25 ........... 10/09 @ 102 5,132,200 AAA 1,095 Deltona Util. Sys., 5.00%, 10/01/23, MBIA ................................ 10/13 @ 100 1,138,088 BBB 4,000 Escambia Cnty. Env. Impvt., 5.75%, 11/01/27 ............................... No Opt. Call 4,055,640 AAA 5,000 Escambia Cnty. Hlth. Facs. Auth., 5.95%, 7/01/20, AMBAC ................... No Opt. Call 5,302,650 BBB+ 1,955 Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23 ......................................................... 10/12 @ 100 1,947,591 AAA 1,000 Hillsborough Cnty. Sch. Brd., 5.00%, 7/01/27, MBIA ........................ 07/13 @ 100 1,026,120 AA 1,000 Lakeland Wtr. & Wstwtr., 5.00%, 10/01/27 .................................. 10/12 @ 100 1,025,020 AAA 3,000 Lee Cnty. Transp. Fac., Ser. B, 5.00%, 10/01/22, AMBAC .................... 10/14 @ 100 3,154,650 Marco Island Util. Sys., MBIA, AAA 2,000 5.00%, 10/01/22 ......................................................... 10/13 @ 100 2,086,740 AAA 1,375 5.00%, 10/01/23 ......................................................... 10/13 @ 100 1,429,106 AAA 1,000 5.25%, 10/01/21 ......................................................... 10/13 @ 100 1,073,610 Miami Dade Cnty., MBIA, AAA 5,365 Ser. A, Zero Coupon, 10/01/19 ........................................... 04/08 @ 55.413 2,402,340 AAA 10,000 Ser. A, Zero Coupon, 10/01/20 ........................................... 04/08 @ 52.398 4,221,500 AAA 7,560 Ser. B, Zero Coupon, 10/01/32 ........................................... 04/08 @ 26.494 1,529,161 AAA 4,000 Mun. Loan Council, Ser. A, Zero Coupon, 4/01/20, MBIA ..................... No Opt. Call 1,843,880 NR 4,000 No. Palm Beach Cnty. Impvt. Dist., Wtr. Ctrl. & Impvt. Unit Dev. 43, 6.10%, 8/01/21 .......................................................... 08/11 @ 101 4,132,720 A 4,450 Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32 11/12 @ 101 4,605,172 Palm Coast Florida Util. Sys., MBIA, AAA 1,770 5.00%, 10/01/22 ......................................................... 10/13 @ 100 1,846,765 AAA 1,485 5.00%, 10/01/23 ......................................................... 10/13 @ 100 1,543,435 AAA 1,500 5.00%, 10/01/24 ......................................................... 10/13 @ 100 1,551,840 AAA 2,760 Polk Cnty. Florida Util. Sys., 5.00%, 10/01/23, FGIC ...................... 10/13 @ 100 2,868,606 NR 4,765 Sterling Hill Comnty. Dev. Dist., 6.10%, 5/01/23 .......................... 05/13 @ 101 4,810,792 NR 3,140 Stevens Plantation Impvt. Proj., 6.375%, 5/01/13 .......................... No Opt. Call 3,169,139 NR 1,250 Sumter Cnty. Indl. Dev. Auth., No. Sumter Util. Co. LLC, 6.80%, 10/01/32 .. 10/09 @ 100 1,265,025 Tohopekaliga Wtr. Auth., FSA, AAA 3,630 Ser. A, 5.00%, 10/01/21 ................................................. 10/13 @ 100 3,810,883 AAA 3,810 Ser. A, 5.00%, 10/01/22 ................................................. 10/13 @ 100 3,975,239 AAA 2,000 Ser. A, 5.00%, 10/01/23 ................................................. 10/13 @ 100 2,078,700 AAA 1,975 Ser. B, 5.00%, 10/01/22 ................................................. 10/13 @ 100 2,060,656 AAA 1,180 Ser. B, 5.00%, 10/01/23 ................................................. 10/13 @ 100 1,226,433 NR 2,000 Village Cmnty. Dev. Dist. No. 5, Spl. Assmt. Rev., Ser. A, 6.00%, 5/01/22 . 05/13 @ 101 2,017,800 Village Ctr. Cmnty. Dev. Dist., AAA 5,000 5.25%, 10/01/23, MBIA ................................................... 10/13 @ 101 5,305,550 NR 2,000 Ser. B, 6.35%, 1/01/18 .................................................. 01/14 @ 100 2,097,600 ------------ 91,307,923 ------------ PUERTO RICO--14.6% Children's Trust Fund, Tobacco Settlement Rev., BBB 2,015 5.50%, 5/15/39 .......................................................... 05/12 @ 100 1,879,088 BBB 10,500 5.625%, 5/15/43 ......................................................... 05/12 @ 100 9,893,835 ------------ 11,772,923 ------------ TOTAL LONG-TERM INVESTMENTS (COST $101,113,671) ........................... 103,080,846 ------------
See Notes to Financial Statements. 45
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== SHORT-TERM INVESTMENTS--35.9% ALABAMA--3.7% A1 $ 3,000(3) Columbia Indl. Dev. Brd., PCR., Ser. B, 1.30%, 1/02/04, FRDD .............. $ 3,000,000 ------------ CALIFORNIA--7.4% A1+ 3,000(3) California St., GO, Ser. A-2, 1.27%, 1/02/04, FRDD ........................ 3,000,000 A1+ 3,000(3) Los Angeles Regl. Arpt. Impvt. Corp., Lease Rev., 1.19%, 1/02/04, FRDD ... 3,000,000 ------------ 6,000,000 ------------ GEORGIA--3.7% A1+ 3,000(3) Mun. Elec. Auth., Proj. 1, Ser. C, 1.05%, 1/07/04, MBIA, FRWD ............. 3,000,000 ------------ KANSAS--3.6% A1+ 2,900(3) Kansas St. Dept. Transp. Hwy, Ser. B-1, 1.16%, 1/02/04, FRDD .............. 2,900,000 ------------ MASSACHUSETTS--2.2% A1+ 1,800(3) Massachusetts St. Dev. Fin. Agcy., Boston Univ., Ser. R-4, 1.16%, 1/02/04, XLCA, FRDD .............................................................. 1,800,000 ------------ NEW YORK--4.1% A1+ 3,260(3) New York City, GO, Ser. B-2, 1.17%, 1/02/04, FRDD ......................... 3,260,000 ------------ TEXAS--7.1% A1+ 2,700(3) Brownsville Util. Sys., Ser. A, 1.10%, 1/07/04, MBIA, FRWD ................ 2,700,000 A1+ 3,000(3) Lower Neches Valley Auth., Ind. Dev. Corp., Ser. A, 1.20%, 1/02/04, FRDD .. 3,000,000 ------------ 5,700,000 ------------ PUERTO RICO--4.1% A1 3,300(3) Puerto Rico Comnwlth. Govt. Dev. Bank, 1.06%, 1/07/04, MBIA, FRWD ......... 3,300,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $28,960,000) ........................... 28,960,000 ------------ TOTAL INVESTMENTS--163.7% (COST $130,073,671) ............................. 132,040,846 Liabilities in excess of other assets--(3.1)% ............................. (2,480,731) Preferred shares at redemption value, including dividends payable--(60.6)% (48,905,424) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 80,654,691 ============
---------- (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 AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company FRDD -- Floating Rate Daily Demand FRWD -- Floating Rate Weekly Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue XLCA -- XL Capital Assurance -------------------------------------------------------------------------------- See Notes to Financial Statements. 46 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST (BLN)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--152.3% Albany Cnty., GO, FGIC, AAA $ 1,515 3.50%, 6/01/08 .......................................................... No Opt. Call $ 1,590,735 AAA 2,030 3.50%, 6/01/09 .......................................................... No Opt. Call 2,124,192 AAA 1,075(3) Babylon, GO, Ser. A, 5.875%, 1/15/04, AMBAC ............................... N/A 1,097,822 AAA 1,000 Bath Central Sch. Dist., 4.00%, 6/15/08, FGIC ............................. No Opt. Call 1,071,440 AAA 2,250 Central Square Central Sch. Dist., 3.75%, 5/15/09, FGIC ................... No Opt. Call 2,381,558 1,960 East Greenbush Central Sch. Dist., Ser. C, 4.00%, 6/15/09, FSA ............ No Opt. Call 2,101,081 Elmira City Sch. Dist., FGIC, AAA 2,125 3.25%, 6/15/08 .......................................................... No Opt. Call 2,209,830 AAA 1,500 3.25%, 6/15/09 .......................................................... No Opt. Call 1,551,150 Erie Cnty., GO, AAA 3,825 Pub. Impvt., Ser. A, 3.25%, 9/01/09, FGIC ............................... No Opt. Call 3,929,728 AAA 1,000 Pub. Impvt., Ser. A, 3.75%, 10/01/08, FGIC .............................. No Opt. Call 1,057,900 AAA 785 Ser. B, 5.70%, 5/15/08, MBIA ............................................ 05/04 @ 102 812,538 AAA 1,185 Evans & Brant Central Sch. Dist., Ser. C, 3.75%, 12/15/08, FGIC ........... No Opt. Call 1,259,335 Fayetteville-Manlius Central Sch. Dist., GO, FGIC, AAA 1,125 3.75%, 6/15/09 .......................................................... No Opt. Call 1,191,769 AAA 1,000 4.00%, 6/15/08 .......................................................... No Opt. Call 1,071,440 AAA 1,500 Hempstead Township, GO, Ser. B, 4.00%, 8/01/09, MBIA ...................... No Opt. Call 1,602,315 AAA 1,070 Highland Central Sch. Dist., GO, 3.50%, 6/15/09, FSA ...................... No Opt. Call 1,119,990 AAA 12,500 Long Island Pwr. Auth., Elec. Sys., 5.00%, 4/01/08, MBIA .................. No Opt. Call 13,796,250 Lowville Central Sch. Dist., GO, FGIC, AAA 1,255 3.30%, 6/15/08 .......................................................... No Opt. Call 1,307,748 AAA 1,305 3.60%, 6/15/09 .......................................................... No Opt. Call 1,372,560 Met. Transp. Auth., AAA 12,000 Ser. A, 3.50%, 11/15/09, FSA ............................................ No Opt. Call 12,508,320 AAA 26,075 Ser. K, 6.00%, 7/01/08, MBIA ............................................ ETM 30,322,096 AAA 2,500 Commuter Fac. Rev., Ser. A, 6.10%, 7/01/08, MBIA ........................ ETM 2,917,825 AAA 1,500 Middletown Sch. Dist., GO, Ser. A, 3.00%, 11/01/09, FSA ................... No Opt. Call 1,526,235 Monroe Cnty., GO, Pub. Impvt., FGIC, AAA 1,225 4.00%, 3/01/09 .......................................................... No Opt. Call 1,308,692 AAA 2,095 4.00%, 3/01/10 .......................................................... No Opt. Call 2,226,189 Mt. Sinai Union Free Sch. Dist., AMBAC, AAA 935 6.00%, 2/15/08 .......................................................... No Opt. Call 1,071,847 AAA 930 6.10%, 2/15/09 .......................................................... No Opt. Call 1,085,998 AAA 1,075 6.10%, 2/15/10 .......................................................... No Opt. Call 1,267,554 New Paltz Central Sch. Dist., GO, FGIC, AAA 500 3.125%, 6/01/08 ......................................................... No Opt. Call 517,185 AAA 610 3.50%, 6/01/09 .......................................................... No Opt. Call 638,304 AAA 3,000 New York, GO, Ser. A, 4.00%, 3/15/09, FSA ................................. No Opt. Call 3,206,430 New York City, GO, AAA 1,000 Ser. A, 5.20%, 8/01/10, FSA ............................................. 08/08 @ 101 1,116,200 AAA 4,720 Ser. C, 4.75%, 8/15/09, XLCA ............................................ 08/08 @ 101 5,140,127 AAA 12,755 Ser. C, 5.00%, 8/01/08, FSA ............................................. No Opt. Call 14,096,061 AAA 45 Ser. C-1, 6.25%, 8/01/10, FSA ........................................... 01/04 @ 100.75 45,500 AAA 50 Ser. C-1, 6.375%, 8/01/08, MBIA ......................................... 01/04 @ 100.75 50,560 AAA 6,895 Ser. E, 6.20%, 8/01/08, MBIA ............................................ No Opt. Call 7,958,830 New York City Hlth. & Hosp. Corp., Hlth. Sys., Ser. A, AAA 2,810 3.75%, 2/15/09, FSA ..................................................... No Opt. Call 2,947,718 AAA 2,000 5.00%, 2/15/08, AMBAC ................................................... No Opt. Call 2,201,380 New York City Mun. Wtr. Fin. Auth., Ser. A, AAA 11,500 Zero Coupon, 6/15/09, MBIA .............................................. No Opt. Call 9,812,605 AAA 1,710 6.00%, 6/15/08, FGIC .................................................... ETM 1,985,874 New York City Transl. Fin. Auth., AAA 4,000 Ser. B, 4.00%, 5/01/09, MBIA ............................................ No Opt. Call 4,273,480 AAA 7,800 Ser. B, 5.25%, 5/01/11, MBIA ............................................ No Opt. Call 8,907,990 AAA 2,000 Ser. C, 5.00%, 8/01/09, FSA ............................................. No Opt. Call 2,234,940 AAA 3,300 Ser. C, 5.50%, 2/01/09, FSA ............................................. No Opt. Call 3,749,262
See Notes to Financial Statements. 47
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS (CONTINUED) New York Dorm. Auth., AAA $ 3,150(3) City Univ., Ser. 1, 6.125%, 7/01/04, AMBAC .............................. N/A $ 3,290,774 AAA 1,070 Hosp. Lutheran Medical, 3.00%, 2/01/09, MBIA ............................ No Opt. Call 1,084,274 AAA 1,625 Sch. Dist. Fin., Ser. C, 3.50%, 10/01/08, MBIA .......................... No Opt. Call 1,700,270 AAA 2,970 Secured Hosp., 4.00%, 2/15/09, XLCA ..................................... No Opt. Call 3,150,754 AAA 3,500 Secured Hosp., 5.00%, 2/15/10, MBIA ..................................... 02/08 @ 101.5 3,878,210 AAA 5,000 Secured Hosp., 5.125%, 2/15/09, FSA ..................................... 02/08 @ 101.5 5,537,550 AAA 1,600 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/07, FGIC ...................... No Opt. Call 1,780,416 AAA 2,500 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, AMBAC ..................... No Opt. Call 2,823,425 AAA 5,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, FGIC ...................... No Opt. Call 5,646,850 AAA 6,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, CONNIE LEE ................ No Opt. Call 6,776,220 AAA 5,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/09, AMBAC ..................... No Opt. Call 5,717,150 AAA 500 W.K. Nursing Home, 5.65%, 8/01/09 ....................................... 08/06 @ 102 537,125 AAA 1,000 Winthrop Univ. Hosp. Assoc., Ser. A, 4.125%, 7/01/08, AMBAC ............. No Opt. Call 1,070,380 New York Env. Facs. Corp., AAA 1,630 Clean Wtr. & Drinking, 3.875%, 4/15/10 .................................. No Opt. Call 1,730,033 AAA 6,000 Mun. Wtr. Proj., 4.00%, 6/15/09 ......................................... No Opt. Call 6,435,000 AAA 4,170(3) PCR, Ser. D, 6.60%, 11/15/04 ............................................ N/A 4,449,807 AAA 830 PCR, Ser. D, 6.60%, 5/15/08 ............................................. 11/04 @ 102 883,228 New York Hsg. Fin. Agcy., AAA 1,345 Hsg. Proj. Mtge., Ser. A, 5.80%, 5/01/09, FSA ........................... 05/06 @ 102 1,437,146 AAA 4,585 Hsg. Proj. Mtge., Ser. A, 5.80%, 11/01/09, FSA .......................... 05/06 @ 102 4,898,064 AAA 3,865 Multifamily Mtge. Hsg., Ser. C, 6.30%, 8/15/08 .......................... 01/04 @ 101 3,890,779 New York Med. Care Fac. Fin. Agcy., AAA 3,000 Mental Hlth. Fac., 5.25%, 8/15/07, FGIC ................................. 02/04 @ 102 3,074,010 AAA 5,000(3) New York Hosp., Ser. A, 6.50%, 2/15/05, AMBAC ........................... N/A 5,397,700 AAA 250 New York Pwr. Auth., Ser. CC, 5.125%, 1/01/11, MBIA ....................... ETM 284,100 New York Thruway Auth., AAA 4,955 Ser. A, 3.75%, 3/15/09, MBIA ............................................ No Opt. Call 5,199,133 AAA 2,000 Hwy. & Brdg. Trust Fund, Ser. A, 3.90%, 4/01/09, FSA .................... No Opt. Call 2,124,960 AAA 5,000(3) Hwy. & Brdg. Trust Fund, Ser. A, 5.625%, 4/01/04, AMBAC ................. N/A 5,155,300 AAA 2,000 Hwy. & Brdg. Trust Fund, Ser. B, 4.00%, 4/01/09, MBIA ................... No Opt. Call 2,134,700 AAA 2,900 Hwy. & Brdg. Trust Fund, Ser. B, 5.25%, 4/01/11, MBIA ................... No Opt. Call 3,307,711 AAA 1,000(3) Hwy. & Brdg. Trust Fund, Ser. B, 6.00%, 4/01/04, FGIC ................... N/A 1,031,940 AAA 6,940(3) Svc. Contract Rev., Local Hwy. & Brdg., 5.75%, 4/01/04, MBIA ............ N/A 7,157,569 AAA 3,410 Svc. Contract Rev., Local Hwy. & Brdg., Ser. A, 5.375%, 4/01/09, MBIA ... 04/08 @ 101 3,833,897 New York Urban Dev. Corp., Correctional Facs., AMBAC, AAA 2,000 Ser. A, 5.50%, 1/01/09 .................................................. No Opt. Call 2,268,080 AAA 5,140 Svc. Contract Rev., Ser. B, 5.25%, 1/01/10 .............................. 01/09 @ 101 5,775,869 AAA 1,040 Newfane Central Sch. Dist., GO, 3.00%, 6/01/08, FSA ....................... No Opt. Call 1,070,326 So. Seneca Central Sch. Dist., GO, MBIA, AAA 1,185 3.20%, 6/15/08 .......................................................... No Opt. Call 1,229,817 AAA 1,045 3.375%, 6/15/09 ......................................................... No Opt. Call 1,087,228 AAA 1,030 Sodus Central Sch. Dist., 4.00%, 6/15/09, FGIC ............................ No Opt. Call 1,104,139 AAA 5,000 Suffolk Cnty. Ind. Dev. Agcy., 6.00%, 2/01/08, FGIC ....................... No Opt. Call 5,712,600 AAA 1,675 Suffolk Cnty. Wtr. Auth., Ser. C, 5.75%, 6/01/08, AMBAC ................... ETM 1,697,077 AAA 2,265 Triborough Brdg. & Tunl. Auth., Ser. A, 5.125%, 1/01/11, MBIA ............. ETM 2,553,584 ------------ TOTAL LONG-TERM INVESTMENTS (COST $270,532,873) ........................... 293,683,778 ------------
See Notes to Financial Statements. 48
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== SHORT-TERM INVESTMENTS--2.3% GEORGIA--1.00% A1+ $ 2,000(4) Mun. Elec. Auth., Proj. 1, Ser. C, 1.05%, 1/07/04, MBIA, FRWD ............. $ 2,000,000 ------------ NEW YORK--0.2% A1+ 300(4) New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys., Ser. G, 1.27%, 1/02/04, FGIC, FRDD ..................................................... 300,000 ------------ ----------- SHARES (000) ----------- MONEY MARKET FUND--1.1% 2,150 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ 2,150,000 ------------- TOTAL SHORT-TERM INVESTMENTS (COST $4,450,000) ............................ 4,450,000 ------------- TOTAL INVESTMENTS--154.6% (COST $274,982,873) ............................. $ 298,133,778 Other assets in excess of liabilities--2.2% ............................... 4,226,078 Preferred shares at redemption value, including dividends payable--(56.8)% (109,558,756) ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 192,801,100 =============
---------- (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. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 93.3% of the Trust's total investments. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation CONNIE LEE -- College Construction Loan Insurance Association ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company 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 XLCA -- XL Capital Assurance -------------------------------------------------------------------------------- See Notes to Financial Statements. 49 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST (BLH)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--152.7% NEW YORK--137.0% Aaa $ 1,320 East Rochester Hsg. Auth., 5.20%, 12/20/24 ................................ 12/11 @ 101 $ 1,364,418 BBB 2,450 Jefferson Cnty. Ind. Dev. Agcy., Sld. Wst. Disp. Rev., 5.20%, 12/01/20 .... 12/13 @ 100 2,460,731 AAA 1,900 Long Island Pwr. Auth., Elec. Sys. Rev., Zero Coupon, 6/01/18, FSA ........ No Opt. Call 1,015,607 AAA 5,000 Met. Transp. Auth., Ser. A, 5.125%, 11/15/21, FGIC ........................ 11/12 @ 100 5,321,250 New York City, GO, A 4,000 Ser. B, 5.375%, 12/01/20 ................................................ 12/11 @ 100 4,195,560 A+ 5,000 Ser. G, 5.75%, 8/01/18 .................................................. 08/12 @ 100 5,467,400 A- 4,000 New York City Ind. Dev. Agcy., Civic Fac. Rev., YMCA of Greater New York Proj., 5.25%, 8/01/21 .......................................... 02/11 @ 100 4,099,280 New York City Transl. Fin. Auth., AA+ 3,000 Ser. B, 5.00%, 5/01/18 .................................................. 11/11 @ 101 3,196,500 AA+ 1,895 Ser. C, 5.00%, 5/01/19 .................................................. 05/09 @ 101 1,995,075 New York Dorm. Auth., AA 1,000 Brooklyn Law Sch., Ser. A, 5.50%, 7/01/18, RAA .......................... 07/13 @ 100 1,090,600 AA- 1,800 City Univ., Ser. A, 5.125%, 7/01/21 ..................................... 07/11 @ 100 1,877,868 AA- 3,750 Mental Hlth. Svcs., Ser. A, 5.00%, 2/15/18 .............................. 02/08 @ 102 3,884,850 AAA 1,030(3) Mental Hlth. Svcs., Ser. B, 5.50%, 08/15/11, MBIA ....................... N/A 1,207,789 AAA 1,590 Mental Hlth. Svcs., Ser. B, 5.50%, 8/15/20, MBIA ........................ 08/11 @ 100 1,727,837 AA- 3,230 Upstate Cmnty. Colleges, Ser. A, 5.00%, 7/01/19 ......................... 07/09 @ 101 3,378,709 AAA 1,000 Willow Towers Inc. Proj., 5.25%, 2/01/22 ................................ 08/12 @ 101 1,045,110 AA- 3,500 New York Urban Dev. Corp., Correctional Facs., 5.00%, 1/01/19 ............. 01/08 @ 102 3,606,925 AA 4,180 Niagra Cnty. Ind. Dev. Agcy., Civic Fac. Rev., Niagra Univ. Proj., Ser. A, 5.35%, 11/01/23, RAA ............................................ 11/11 @ 101 4,390,379 AA 4,130 Oneida Hlth. Care Corp., Residential Hlth. Care Proj., 5.30%, 2/01/21 ..... 02/11 @ 101 4,358,182 AA 3,875 Orange Cnty. Ind. Dev. Agcy., Civic Fac. Rev., St. Lukes Hosp. Newburg Proj., Ser. A, 5.375%, 12/01/21, RAA ........................................... 12/11 @ 101 4,136,989 Port Auth. of NY & NJ, AAA 3,885 Ser. 126, 5.00%, 11/15/18, FGIC ......................................... 05/12 @ 101 4,121,752 Caa2 2,600 Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 9.125%, 12/01/15 .......... 01/04 @ 100 2,592,148 BBB 4,000 Rockland Tobacco Asset Sec. Corp., Tobacco Settlement Rev., 5.625%, 8/15/35 08/12 @ 100 3,826,920 A2 3,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 ............... 07/12 @ 100 3,000,180 AAA 3,710 Westchester Cnty. Ind. Dev. Agy., Civiv Fac. Rev., Ser. A, 5.125%, 12/01/22, AMBAC ......................................................... 12/11 @ 102 3,943,767 ------------- 77,305,826 ------------- DELAWARE--7.6% NR 4,000(4) Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 .................. 06/09 @ 100 4,274,760 -------------
See Notes to Financial Statements. 50
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== PUERTO RICO--8.1% BBB $ 2,000 Children's Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43 ........... 05/12 @ 100 $ 1,884,540 BBB+ 2,500 Puerto Rico Pub. Fin. Corp., Ser. E, 5.70%, 8/01/25 ....................... 02/10 @ 100 2,682,025 ------------ 4,566,565 ------------ TOTAL LONG-TERM INVESTMENTS (COST $81,654,126) ............................ 86,147,151 ------------ --------- SHARES (000) --------- MONEY MARKET FUND--0.4% 200 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $200,000) ........ N/A 200,000 ------------ TOTAL INVESTMENTS--153.1% (COST $81,854,126) .............................. 86,347,151 Other assets in excess of liabilities--2.6% ............................... 1,468,933 Preferred shares at redemption value, including dividends payable--(55.7)% (31,400,768) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 56,415,316 ============
---------- (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This bond is prerefunded. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of December 31, 2003, the Trust held 7.6% of its net assets, with a current market value of $4,274,760, in securities restricted as to resale. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association RAA -- Radian Asset Assurance -------------------------------------------------------------------------------- See Notes to Financial Statements. 51 PORTFOLIO OF INVESTMENTS DECEMBER 31, 2003 BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST (BPS)
PRINCIPAL AMOUNT OPTION CALL RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE ================================================================================================================================== LONG-TERM INVESTMENTS--140.2% PENNSYLVANIA--120.4% AAA $ 2,150(3) Allegheny Cnty. Port Auth., 6.125%, 03/01/09, MBIA ........................ N/A $ 2,543,450 AAA 1,800 Allegheny Cnty. San. Auth., 5.375%, 12/01/24, MBIA ........................ 12/07 @ 102 1,909,962 BBB+ 1,400 Bucks Cnty. Ind. Dev. Auth., Pennswood Vlg. Proj., Ser. A, 6.00%, 10/01/34 10/12 @ 101 1,443,260 NR 1,250 Dauphin Cnty. Gen. Auth., Hotel & Conf. Ctr., Hyatt Regency, 6.20%, 1/01/19 01/09 @ 102 1,135,525 NR 2,500 Delaware Cnty. Hlth. Facs. Auth., Mercy Hlth. Corp. Proj., 6.00%, 12/15/26 ETM 2,762,900 AAA 1,250 Delaware Cnty. Ind. Dev. Auth., Wtr. Facs., 6.00%, 6/01/29, FGIC .......... 06/09 @ 101 1,388,525 Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp., Ba2 1,250 6.00%, 11/01/23 ......................................................... 11/08 @ 102 1,224,037 Ba2 1,250 6.20%, 11/01/14 ......................................................... 11/09 @ 102 1,238,975 BBB+ 1,250 Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev., 5.25%, 11/15/28 . 11/08 @ 101 1,198,175 Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A, A3 1,000 6.25%, 11/01/31 ......................................................... 05/11 @ 101 999,320 A3 1,000 Exempt Facs. Rev., 6.375%, 11/01/41 ..................................... 05/11 @ 101 1,002,830 Pennsylvania Higher Edl. Facs. Auth., AA- 1,250 Lafayette Coll. Proj., 6.00%, 5/01/30 ................................... 05/10 @ 100 1,415,075 AA 310 Philadelphia Univ., 6.10%, 6/01/30, RAA ................................. 06/10 @ 100 339,813 Pennsylvania Hsg. Fin. Agcy., Sngl. Fam. Mtge., AA+ 1,130 Ser. 60A, 5.85%, 10/01/27 ............................................... 04/07 @ 101.5 1,168,420 AA+ 3,200 Ser. 68A, 6.10%, 4/01/21 ................................................ 10/09 @ 100 3,349,024 A 1,000 Pennsylvania St. Higher Edl. Facs. Auth., Univ. of Pennsylvania Hlth. Svcs., Ser. A, 5.75%, 1/01/22 .................................................. 01/06 @ 101 1,022,120 AAA 1,250 Philadelphia Arpt. Sys., Ser. B, 5.40%, 6/15/27, FGIC ..................... 06/07 @ 102 1,290,588 AAA 1,250 Philadelphia Pkg. Auth., Pkg. Rev., 5.625%, 9/01/18, FSA .................. 09/09 @ 101 1,390,412 Philadelphia Sch. Dist., GO, AAA 1,190 Ser. B, 5.50%, 9/01/25, AMBAC ........................................... 09/05 @ 101 1,252,463 AAA 2,800 Ser. C, 5.50%, 3/01/24, MBIA ............................................ 03/10 @ 100 3,018,652 AAA 3,050 Ser. C, 5.75%, 3/01/29, MBIA ............................................ 03/10 @ 100 3,366,072 AAA 2,250 Southeastern Trans. Auth., 5.375%, 3/01/17, FGIC .......................... 03/07 @ 102 2,448,337 AAA 1,750 Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC .. No Opt. Call 2,143,645 ------------ 39,051,580 ------------ MARYLAND--13.3% NR 4,000(4) MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 06/30/49 ................. 06/09 @ 100 4,322,000 ------------ PUERTO RICO--6.5% BBB+ 2,000 Puerto Rico Pub. Fin. Corp., Ser. E, 5.50%, 8/01/29 ....................... 02/12 @ 100 2,099,740 ------------ TOTAL LONG-TERM INVESTMENTS (COST $41,790,198) ............................ 45,473,320 ------------ ---------- SHARES (000) ---------- MONEY MARKET FUNDS--9.9% 1,600 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ N/A 1,600,000 1,600 SSgA Tax Free Money Mkt. Fund ............................................. N/A 1,600,000 ------------ TOTAL MONEY MARKET FUNDS (COST $3,200,000) ................................ 3,200,000 TOTAL INVESTMENTS--150.1% (COST $44,990,198) .............................. 48,673,320 Other assets in excess of liabilities--3.9% ............................... 1,265,443 Preferred shares at redemption value, including dividends payable--(54.0)% (17,503,738) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 32,435,025 ============
---------- (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. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of December 31, 2003, the Trust held 13.3% of its net assets, with a current market value of $4,322,000, in securities restricted as to resale. -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association RAA -- Radian Asset Assurance -------------------------------------------------------------------------------- See Notes to Financial Statements. 52 STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2003
INSURED INSURED MUNICIPAL MUNICIPAL 2008 MUNICIPAL MUNICIPAL 2018 MUNICIPAL 2020 TARGET TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST ASSETS (BRM) (BMT) (BPK) (BKK) (BMN) ------------ ------------ ------------ ------------ ------------ Investments at value(1) ......................... $733,957,518 $461,259,359 $380,805,916 $468,919,159 $789,389,169 ------------ ------------ ------------ ------------ ------------ Cash ............................................ 382,587 505,160 526,186 24,400 516,385 Receivable for investments sold ................. 346,092 -- 157,093 -- 165,306 Interest receivable ............................. 9,581,165 5,548,161 4,446,564 4,329,999 7,904,984 Other assets .................................... 131,595 90,657 28,408 6,617 111,417 ------------ ------------ ------------ ------------ ------------ 744,398,957 467,403,337 385,964,167 473,280,175 798,087,261 ------------ ------------ ------------ ------------ ------------ LIABILITIES Payable to custodian ............................ -- -- -- -- -- Payable for investments purchased ............... -- 1,557,940 -- -- -- Dividends payable--common shares ................ -- -- 1,034,022 1,580,987 -- Investment advisory fee payable ................. 221,765 138,016 130,000 199,283 237,035 Administration fee payable ...................... 63,361 39,433 -- -- 94,705 Deferred Directors/Trustees fees ................ 97,662 76,305 16,696 -- 82,014 Other accrued expenses .......................... 150,854 139,946 125,661 278,876 223,337 ------------ ------------ ------------ ------------ ------------ 533,642 1,951,640 1,306,379 2,059,146 637,091 ------------ ------------ ------------ ------------ ------------ PREFERRED SHARES AT REDEMPTION VALUE $25,000 liquidation value per share, including dividends payable(2),(3) ...................... 271,080,787 170,424,011 137,625,996 177,623,122 299,167,156 ------------ ------------ ------------ ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS ........................... $472,784,528 $295,027,686 $247,031,792 $293,597,907 $498,283,014 ============ ============ ============ ============ ============ COMPOSITION OF NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Par value ..................................... $ 272,071 $ 258,856 $ 15,908 $ 20,237 $ 454,106 Paid-in capital in excess of par .............. 377,589,494 239,251,319 225,641,716 287,166,281 420,179,598 Undistributed (Distributions in excess of) net investment income ....................... 41,560,348 20,108,157 10,248,439 (329,584) 33,592,893 Accumulated net realized loss ................. (67,562) (1,308) (2,036,899) (482,817) 26,444 Net unrealized appreciation (depreciation) .... 53,430,177 35,410,662 13,162,628 7,223,790 44,029,973 ------------ ------------ ------------ ------------ ------------ Net assets applicable to common shareholders, December 31, 2003 ............................. $472,784,528 $295,027,686 $247,031,792 $293,597,907 $498,283,014 ============ ============ ============ ============ ============ Net asset value per common share(4) ............. $17.38 $11.40 $15.53 $14.51 $10.97 ====== ====== ====== ====== ====== (1)Investments at cost .......................... $680,527,340 $425,848,697 $367,643,288 $461,695,369 $745,359,196 (2)Preferred shares outstanding ................. 10,840 6,816 5,504 7,104 11,964 (3)Par value per share .......................... 0.01 0.01 0.001 0.001 0.01 (4)Common shares outstanding .................... 27,207,093 25,885,639 15,908,028 20,236,628 45,410,639
See Notes to Financial Statements. 53
CALIFORNIA NEW YORK PENNSYLVANIA STRATEGIC INSURED CALIFORNIA FLORIDA INSURED FLORIDA INSURED NEW YORK STRATEGIC MUNICIPAL MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL 2008 MUNICIPAL 2020 MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TRUST (BSD) (BFC) (BJZ) (BRF) (BFO) (BLN) (BLH) (BPS) ------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------- $175,064,089 $280,403,216 $148,946,453 $223,619,026 $132,040,846 $298,133,778 $86,347,151 $48,673,320 ------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------- 500,720 -- 514,114 514,988 86,582 508,346 536,323 863,991 -- -- -- -- -- -- -- -- 2,391,939 3,478,464 1,613,859 3,267,775 1,172,769 3,909,723 1,215,285 612,113 33,230 69,517 9,805 46,486 1,798 57,423 7,311 19,882 ------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------- 177,989,978 283,951,197 151,084,231 227,448,275 133,301,995 302,609,270 88,106,070 50,169,306 ------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------- -- 272,170 -- -- -- -- -- -- -- -- -- -- 3,154,860 -- -- -- 576,375 -- 394,023 -- 417,160 -- 222,523 149,076 52,339 84,462 50,902 67,573 54,863 89,791 29,724 14,497 -- 24,132 -- 19,308 -- 25,655 -- -- 19,865 36,659 5,264 28,900 -- 37,520 4,641 10,417 82,008 94,027 58,986 80,889 114,997 96,448 33,098 56,553 ------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------- 730,587 511,450 509,175 196,670 3,741,880 249,414 289,986 230,543 ------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------- 62,013,242 104,586,175 55,528,256 84,169,359 48,905,424 109,558,756 31,400,768 17,503,738 ------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------- $115,246,149 $178,853,572 $ 95,046,800 $143,082,246 $ 80,654,691 $192,801,100 $56,415,316 $32,435,025 ============ ============ ============ ============ ============= ============ =========== =========== $ 7,242 $ 104,071 $ 6,433 $ 87,071 $ 5,562 $ 112,571 $ 3,633 $ 2,015 102,593,420 144,174,166 91,213,865 120,583,337 78,885,738 155,947,555 51,482,732 28,362,834 4,314,946 14,613,272 2,852,269 9,238,980 (203,764) 13,588,759 1,543,840 884,358 (5,481,856) (3,661) (1,486,596) -- (20) 1,310 (1,107,914) (497,304) 13,812,397 19,965,724 2,460,829 13,172,858 1,967,175 23,150,905 4,493,025 3,683,122 ------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------- $115,246,149 $178,853,572 $ 95,046,800 $143,082,246 $ 80,654,691 $192,801,100 $56,415,316 $32,435,025 ============ ============ ============ ============ ============= ============ =========== =========== $15.91 $17.19 $14.77 $16.43 $14.50 $17.13 $15.53 $16.09 ====== ====== ====== ====== ====== ====== ====== ====== $161,251,692 $260,437,492 $146,485,624 $210,446,168 $130,073,671 $274,982,873 $81,854,126 $44,990,198 2,480 4,182 2,221 3,366 1,956 4,382 1,256 700 0.001 0.01 0.001 0.01 0.001 0.01 0.001 0.001 7,242,261 10,407,093 6,433,028 8,707,093 5,562,128 11,257,093 3,633,028 2,015,492
54 STATEMENTS OF OPERATIONS FOR THE PERIOD(1) ENDED DECEMBER 31, 2003
INSURED INSURED MUNICIPAL MUNICIPAL 2008 MUNICIPAL MUNICIPAL 2018 MUNICIPAL 2020 TARGET TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST INVESTMENT INCOME (BRM) (BMT) (BPK) (BKK) (BMN) -------------- ----------- -------------- -------------- ----------- Interest Income ............................... $33,710,604 $21,658,177 $21,532,057 $3,636,152 $33,080,661 ----------- ----------- ----------- ----------- ----------- EXPENSES Investment advisory ........................... 2,631,604 1,623,069 1,492,702 453,807 2,813,159 Administration ................................ 751,887 463,734 -- -- 562,632 Transfer agent ................................ 25,212 26,509 16,441 4,092 25,229 Custodian ..................................... 143,966 128,651 82,238 36,287 159,431 Reports to shareholders ....................... 80,864 48,614 43,499 9,765 78,780 Trustees ...................................... 78,425 41,919 34,376 10,230 72,000 Registration .................................. 31,500 31,500 31,500 7,998 36,000 Independent accountants ....................... 54,067 55,661 43,384 11,439 50,258 Legal ......................................... 58,423 40,872 29,166 10,044 101,000 Insurance ..................................... 40,122 26,565 31,485 3,649 38,456 Organization .................................. -- -- -- 15,000 -- Auction agent ................................. 705,383 429,849 357,833 45,250 747,335 Miscellaneous ................................. 102,774 78,402 41,453 10,975 154,659 ----------- ----------- ----------- ----------- ----------- Total expenses .............................. 4,704,227 2,995,345 2,204,077 618,536 4,838,939 Less fees waived by Advisor ............... -- -- -- -- -- Less fees paid indirectly ................. (3,945) (2,758) (4,842) (12,572) (4,865) ----------- ----------- ----------- ----------- ----------- Net expenses ................................ 4,700,282 2,992,587 2,199,235 605,964 4,834,074 ----------- ----------- ----------- ----------- ----------- Net investment income ........................... 29,010,322 18,665,590 19,332,822 3,030,188 28,246,587 ----------- ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments ................................. 2,271,344 (104,764) 980,317 (482,817) 594,145 Futures ..................................... -- 11,604 -- -- -- ----------- ----------- ----------- ----------- ----------- 2,271,344 (93,160) 980,317 (482,817) 594,145 Net change in unrealized appreciation/depreciation on: Investments ................................. (4,173,526) 2,770,245 7,230,936 7,223,790 (7,445,940) Futures ..................................... -- (11,672) -- -- -- ----------- ----------- ----------- ----------- ----------- (4,173,526) 2,758,573 7,230,936 7,223,790 (7,445,940) ----------- ----------- ----------- ----------- ----------- Net gain (loss) ................................. (1,902,182) 2,665,413 8,211,253 6,740,973 (6,851,795) ----------- ----------- ----------- ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM: Net investment income ......................... (2,248,584) (1,453,010) (1,336,973) (212,799) (2,708,216) Net realized gains ............................ (332,710) (100,766) -- -- (126,993) ----------- ----------- ----------- ----------- ----------- Total dividends and distributions ............... (2,581,294) (1,553,776) (1,336,973) (212,799) (2,835,209) ----------- ----------- ----------- ----------- ----------- NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS ..................... $24,526,846 $19,777,227 $26,207,102 $ 9,558,362 $18,559,583 =========== =========== =========== =========== ===========
(1) Commencement of investment operations for Municipal 2020 and Florida 2020 was September 30, 2003. The other Trusts' statements are for a full year. See Notes to Financial Statements. 55
CALIFORNIA NEW YORK PENNSYLVANIA STRATEGIC INSURED CALIFORNIA FLORIDA INSURED FLORIDA INSURED NEW YORK STRATEGIC MUNICIPAL MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL 2008 MUNICIPAL 2020 MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TRUST (BSD) (BFC) (BJZ) (BRF) (BFO) (BLN) (BLH) (BPS) ----------- -------------- -------------- --------------- -------------- -------------- -------------- ------------ $ 9,931,690 $11,811,703 $7,680,000 $9,208,059 $ 874,803 $13,282,012 $4,444,523 $2,617,459 ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- 1,034,313 997,354 591,395 798,774 124,505 1,058,780 343,640 296,345 -- 284,958 -- 228,221 -- 302,509 -- -- 16,441 18,950 15,715 18,052 3,999 20,053 15,715 16,555 65,973 77,162 42,585 73,348 13,066 91,277 37,570 39,099 26,643 29,078 22,595 24,209 4,650 35,074 18,756 14,123 15,903 28,919 13,993 23,112 3,348 31,238 12,767 12,410 22,499 31,500 22,500 22,500 5,766 31,499 22,498 1,201 39,078 41,167 41,746 37,115 10,788 41,666 41,239 25,414 17,183 30,833 12,022 20,196 2,976 31,186 10,843 12,234 8,523 14,945 12,337 12,148 990 16,024 7,084 2,369 -- -- -- -- 15,000 -- -- -- 159,913 274,585 145,971 219,049 12,162 287,466 85,590 52,783 28,912 47,080 30,753 41,917 7,255 48,233 23,053 17,225 ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- 1,435,381 1,876,531 951,612 1,518,641 204,505 1,995,005 618,755 489,758 (430,964) -- -- -- -- -- -- (123,479) (5,271) (6,206) (4,990) (6,665) (4,510) (6,694) (5,992) (9,093) ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- 999,146 1,870,325 946,622 1,511,976 199,995 1,988,311 612,763 357,186 ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- 8,932,544 9,941,378 6,733,378 7,696,083 674,808 11,293,701 3,831,760 2,260,273 ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- (2,846,500) 643,694 35,456 278,399 (20) 445,163 (431,368) 176,317 -- -- -- -- -- 11,604 -- -- ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- (2,846,500) 643,694 35,456 278,399 (20) 456,767 (431,368) 176,317 7,762,221 (70,777) (368,473) 833,697 1,967,175 (1,000,376) 1,090,916 437,910 -- -- -- -- -- (11,672) -- -- ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- 7,762,221 (70,777) (368,473) 833,697 1,967,175 (1,012,048) 1,090,916 437,910 ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- 4,915,721 572,917 (333,017) 1,112,096 1,967,155 (555,281) 659,548 614,227 ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- (595,299) (692,786) (468,828) (555,799) (59,253) (917,968) (286,897) (147,231) -- (124,259) -- (157,394) -- (56,470) -- -- ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- (595,299) (817,045) (468,828) (713,193) (59,253) (974,438) (286,897) (147,231) ----------- ----------- ---------- ---------- ---------- ----------- ---------- ---------- $13,252,966 $ 9,697,250 $5,931,533 $8,094,986 $2,582,710 $ 9,763,982 $4,204,411 $2,727,269 =========== =========== ========== ========== ========== =========== ========== ==========
56 STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD(1) ENDED DECEMBER 31, 2003 AND FOR THE YEAR ENDED DECEMBER 31, 2002
INSURED INSURED MUNICIPAL 2008 TERM TRUST MUNICIPAL TERM TRUST (BRM) (BMT) --------------------------------- --------------------------------- INCREASE IN NET ASSETS APPLICABLE TO 2003 2002 2003 2002 COMMON SHAREHOLDERS ------------ ------------ ------------ ------------ OPERATIONS: Net investment income ............................ $ 29,010,322 $ 34,371,404 $ 18,665,590 $ 21,059,940 Net realized gain (loss) ......................... 2,271,344 2,687,741 (93,160) 3,435,689 Net change in unrealized appreciation/depreciation (4,173,526) 11,516,251 2,758,573 6,943,379 Dividends to preferred shareholders from: Net investment income .......................... (2,248,584) (3,429,311) (1,453,010) (2,026,272) Net realized gain .............................. (332,710) (193,351) (100,766) (401,327) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 24,526,846 44,952,734 19,777,227 29,011,409 ------------ ------------ ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM: Net investment income ............................ (27,680,153) (21,629,022) (16,494,099) (14,884,571) Net realized gain ................................ (3,452,580) (1,003,044) (626,432) (2,498,663) ------------ ------------ ------------ ------------ Total dividends and distributions .................. (31,132,733) (22,632,066) (17,120,531) (17,383,234) ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS: Net proceeds from the issuance of common shares .. -- -- -- -- Net proceeds from the underwriters' over-allotment option exercised ............................... -- -- -- -- Underwriting discounts and offering costs relating to the issuance of preferred shares ............ -- -- -- -- ------------ ------------ ------------ ------------ Net proceeds from capital share transactions ..... -- -- -- -- ------------ ------------ ------------ ------------ Total increase (decrease) .......................... (6,605,887) 22,320,668 2,656,696 11,628,175 ------------ ------------ ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of period ................................ 479,390,415 457,069,747 292,370,990 280,742,815 ------------ ------------ ------------ ------------ End of period ...................................... $472,784,528 $479,390,415 $295,027,686 $292,370,990 ============ ============ ============ ============ End of period undistributed (distributions in excess of) net investment income ................. $ 41,560,348 $ 42,597,722 $ 20,108,157 $ 19,492,189
(1) Commencement of investment operations for Municipal 2020 was September 30, 2003. This information includes the initial investments by BlackRock Funding, Inc. The other Trusts' statements are for a full year. See Notes to Financial Statements. 57
MUNICIPAL MUNICIPAL 2020 MUNICIPAL STRATEGIC 2018 TERM TRUST TERM TRUST TARGET TERM TRUST MUNICIPAL TRUST (BPK) (BKK) (BMN) (BSD) ------------------------------- ------------ ------------------------------- ------------------------------- 2003 2002 2003 2003 2002 2003 2002 ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 19,332,822 $ 18,533,905 $ 3,030,188 $ 28,246,587 $ 31,860,076 $ 8,932,544 $ 9,124,316 980,317 (3,021,249) (482,817) 594,145 990,672 (2,846,500) 435,409 7,230,936 14,845,740 7,223,790 (7,445,940) 26,905,451 7,762,221 2,608,519 (1,336,973) (1,906,541) (212,799) (2,708,216) (3,733,411) (595,299) (837,410) -- -- -- (126,993) (390,763) -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ 26,207,102 28,451,855 9,558,362 18,559,583 55,632,025 13,252,966 11,330,834 ------------ ------------ ------------ ------------ ------------ ------------ ------------ (12,408,248) (12,408,254) (3,161,973) (26,110,995) (27,169,808) (6,727,394) (6,393,453) -- -- -- (1,117,102) (1,682,964) -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ (12,408,248) (12,408,254) (3,161,973) (27,228,097) (28,852,772) (6,727,394) (6,393,453) ------------ ------------ ------------ ------------ ------------ ------------ ------------ -- -- 264,587,501 -- -- -- -- -- -- 24,710,337 -- -- -- -- -- (40,134) (2,096,320) -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ -- -- 287,201,518 -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ 13,798,854 16,003,467 293,597,907 (8,668,514) 26,779,253 6,525,572 4,937,381 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 233,232,938 217,229,471 -- 506,951,528 480,172,275 108,720,577 103,783,196 ------------ ------------ ------------ ------------ ------------ ------------ ------------ $247,031,792 $233,232,938 $293,597,907 $498,283,014 $506,951,528 $115,246,149 $108,720,577 ============ ============ ============ ============ ============ ============ ============ $ 10,248,439 $ 4,664,860 $ (329,584) $ 33,592,893 $ 34,371,156 $ 4,314,946 $ 2,705,894
58 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE PERIOD(1) ENDED DECEMBER 31, 2003 AND FOR THE YEAR ENDED DECEMBER 31, 2002
CALIFORNIA INSURED CALIFORNIA MUNICIPAL 2008 TERM TRUST MUNICIPAL 2018 TERM TRUST (BFC) (BJZ) --------------------------------- --------------------------------- INCREASE IN NET ASSETS APPLICABLE TO 2003 2002 2003 2002 COMMON SHAREHOLDERS ------------ ------------ ------------ ------------ OPERATIONS: Net investment income ............................ $ 9,941,378 $ 12,296,157 $ 6,733,378 $ 6,650,751 Net realized gain (loss) ......................... 643,694 2,132,299 35,456 (1,522,082) Net change in unrealized appreciation/depreciation (70,777) 2,845,882 (368,473) 6,517,313 Dividends to preferred shareholders from: Net investment income .......................... (692,786) (1,144,907) (468,828) (730,547) Net realized gain .............................. (124,259) (282,979) -- -- ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations 9,697,250 15,846,452 5,931,533 10,915,435 ------------ ------------ ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM: Net investment income ............................ (10,396,554) (8,379,547) (4,728,270) (4,728,272) Net realized gain ................................ (944,964) (1,455,598) -- -- ------------ ------------ ------------ ------------ Total dividends and distributions .................. (11,341,518) (9,835,145) (4,728,270) (4,728,272) ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS: Net proceeds from the issuance of common shares .. -- -- -- -- Net proceeds from the underwriter's over-allotment option exercised ............................... -- -- -- -- Underwriting discounts and offering costs relating to the issuance of preferred shares ............ -- -- -- (8,099) ------------ ------------ ------------ ------------ Net proceeds from capital share transactions ..... -- -- -- -- ------------ ------------ ------------ ------------ Total increase (decrease) .......................... (1,644,268) 6,011,307 1,203,263 6,179,064 ------------ ------------ ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of period ................................ 180,497,840 174,486,533 93,843,537 87,664,473 ------------ ------------ ------------ ------------ End of period ...................................... $178,853,572 $180,497,840 $ 95,046,800 $ 93,843,537 ============ ============ ============ ============ End of period undistributed (distributions in excess of) net investment income ................. $ 14,613,272 $ 15,765,930 $ 2,852,269 $ 1,316,019
(1) Commencement of investment operations for Florida 2020 was September 30, 2003. This information includes the initial investments by BlackRock Funding, Inc. The other Trusts' statements are for a full year. See Notes to Financial Statements. 59
FLORIDA MUNICIPAL FLORIDA INSURED 2020 NEW YORK INSURED NEW YORK MUNICIPAL 2008 TERM TRUST TERM TRUST MUNICIPAL 2008 TERM TRUST MUNICIPAL 2018 TERM TRUST (BRF) (BFO) (BLN) (BLH) ------------------------------- ------------ ------------------------------- ------------------------------- 2003 2002 2003 2003 2002 2003 2002 ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 7,696,083 $ 9,728,220 $ 674,808 11,293,701 $ 12,692,900 $ 3,831,760 $ 3,676,247 278,399 2,460,124 (20) 456,767 1,241,424 (431,368) (668,608) 833,697 746,601 1,967,175 (1,012,048) 7,115,347 1,090,916 5,602,206 (555,799) (985,695) (59,253) (917,968) (1,285,575) (286,897) (415,905) (157,394) (327,763) -- (56,470) (285,365) -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ 8,094,986 11,621,487 2,582,710 9,763,982 19,478,731 4,204,411 8,193,940 ------------ ------------ ------------ ------------ ------------ ------------ ------------ (7,050,777) (6,530,070) (834,319) (8,839,915) (8,442,487) (2,670,425) (2,670,271) (882,029) (1,538,717) -- (460,415) (1,309,504) -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ (7,932,806) (8,068,787) (834,319) (9,300,330) (9,751,991) (2,670,425) (2,670,271) ------------ ------------ ------------ ------------ ------------ ------------ ------------ -- -- 71,605,000 -- -- -- -- -- -- 7,920,860 -- -- -- -- -- -- (619,560) -- -- -- 4,438 ------------ ------------ ------------ ------------ ------------ ------------ ------------ -- -- 78,906,300 -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ 162,180 3,552,700 80,654,691 463,652 9,726,740 1,533,986 5,528,107 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 142,920,066 139,367,366 -- 192,337,448 182,610,708 54,881,330 49,353,223 ------------ ------------ ------------ ------------ ------------ ------------ ------------ $143,082,246 $142,920,066 $ 80,654,691 $192,801,100 $192,337,448 $ 56,415,316 $ 54,881,330 ============ ============ ============ ============ ============ ============ ============ $ 9,238,980 $ 9,191,501 $ (203,764) $ 13,588,759 $ 12,149,497 $ 1,543,840 $ 669,402
60 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2003 AND FOR THE YEAR ENDED DECEMBER 31, 2002
PENNSYLVANIA STRATEGIC MUNICIPAL TRUST (BPS) --------------------------------- INCREASE IN NET ASSETS APPLICABLE TO 2003 2002 COMMON SHAREHOLDERS ------------ ------------ OPERATIONS: Net investment income ................................. $ 2,260,273 $ 2,349,724 Net realized gain (loss) .............................. 176,317 (124,910) Net change in unrealized appreciation/depreciation .... 437,910 1,591,396 Dividends to preferred shareholders from net investment income ............................... (147,231) (217,886) ------------ ------------ Net increase in net assets resulting from operations .... 2,727,269 3,598,324 ------------ ------------ DIVIDENDS TO COMMON SHAREHOLDERS FROM: Net investment income ................................. (1,746,005) (1,675,080) ------------ ------------ Total increase .......................................... 981,264 1,923,244 ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of period ..................................... 31,453,761 29,530,517 ------------ ------------ End of period ........................................... $ 32,435,025 $ 31,453,761 ============ ============ End of period undistributed net investment income ....... $ 884,358 $ 518,789
61 FINANCIAL HIGHLIGHTS BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST (BRM)
YEAR ENDED DECEMBER 31, ------------------------------------------------------------------ 2003 2002 2001(1) 2000(1) 1999(1) -------- -------- -------- -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ......................... $ 17.62 $ 16.80 $ 16.62 $ 16.00 $ 17.06 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................... 1.07 1.26 1.33 1.30 1.21 Net realized and unrealized gain (loss) ................. (0.07) 0.53 (0.08) 0.54 (1.23) Dividends and distributions to preferred shareholders: Net investment income ................................. (0.08) (0.13) (0.27) (0.38) (0.24) Net realized gain ..................................... (0.01) (0.01) -- -- -- -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ......... 0.91 1.65 0.98 1.46 (0.26) -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: Net investment income ................................... (1.02) (0.79) (0.80) (0.80) (0.80) Net realized gain ....................................... (0.13) (0.04) -- -- -- -------- -------- -------- -------- -------- Total dividends and distributions .......................... (1.15) (0.83) (0.80) (0.80) (0.80) -------- -------- -------- -------- -------- Capital charges with respect to issuance of preferred shares -- -- -- (0.04) -- -------- -------- -------- -------- -------- Net asset value, end of year ............................... $ 17.38 $ 17.62 $ 16.80 $ 16.62 $ 16.00 ======== ======== ======== ======== ======== Market price, end of year .................................. $ 17.27 $ 16.58 $ 15.70 $ 14.88 $ 13.75 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ................................. 11.29% 11.15% 11.06% 14.40% (10.14)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses after fees paid indirectly ........................ 0.98% 0.98% 1.01% 1.05% 0.93% Expenses before fees paid indirectly ....................... 0.98% 0.98% 1.02% 1.05% 0.93% Net investment income before preferred share dividends ..... 6.03% 7.34% 7.87% 8.06% 7.30% Preferred share dividends .................................. 0.47% 0.73% 1.60% 2.40% 1.47% Net investment income available to common shareholders ..... 5.56% 6.61% 6.27% 5.66% 5.83% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............ $480,887 $468,417 $460,153 $438,958 $452,317 Portfolio turnover ......................................... 18% 23% 3% 3% 1% Net assets of common shareholders, end of year (000) ....... $472,785 $479,390 $457,070 $452,057 $435,314 Preferred shares outstanding (000) ......................... $271,000 $271,000 $271,000 $271,000 $206,000 Asset coverage per preferred share, end of year ............ $ 68,622 $ 69,235 $ 67,178 $ 66,735 $ 77,857
---------- (1) Amounts have been restated to conform to the presentation under the provision of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information in the above 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 year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 62 FINANCIAL HIGHLIGHTS BLACKROCK INSURED MUNICIPAL TERM TRUST (BMT)
YEAR ENDED DECEMBER 31, ---------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) -------- -------- -------- -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ......................... $ 11.29 $ 10.85 $ 10.85 $ 10.60 $ 11.22 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................... 0.73 0.81 0.89 0.89 0.85 Net realized and unrealized gain (loss) ................. 0.10 0.41 (0.12) 0.28 (0.68) Dividends and distributions to preferred shareholders: Net investment income ................................. (0.06) (0.08) (0.18) (0.26) (0.17) Net realized gain ..................................... -- (0.02) (0.01) (0.01) -- -------- -------- -------- -------- -------- Net increase from investment operations .................... 0.77 1.12 0.58 0.90 0.00 -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: Net investment income ................................... (0.64) (0.58) (0.57) (0.60) (0.62) Net realized gain ....................................... (0.02) (0.10) (0.02) (0.02) -- -------- -------- -------- -------- -------- Total dividends and distributions .......................... (0.66) (0.68) (0.59) (0.62) (0.62) -------- -------- -------- -------- -------- Capital charges with respect to issuance of preferred shares -- -- 0.01 (0.03) -- -------- -------- -------- -------- -------- Net asset value, end of year ............................... $ 11.40 $ 11.29 $ 10.85 $ 10.85 $ 10.60 ======== ======== ======== ======== ======== Market price, end of year .................................. $ 11.06 $ 10.94 $ 10.63 $ 10.44 $ 9.44 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ................................. 7.28% 9.51% 7.73% 17.81% (12.92)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses after fees paid indirectly ........................ 1.02% 1.05% 1.06% 1.11% 0.94% Expenses before fees paid indirectly ....................... 1.02% 1.06% 1.06% 1.11% 0.94% Net investment income before preferred share dividends ..... 6.36% 7.32% 8.12% 8.40% 7.74% Preferred share dividends .................................. 0.50% 0.70% 1.68% 2.44% 1.51% Net investment income available to common shareholders ..... 5.86% 6.62% 6.44% 5.96% 6.23% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............ $293,334 $287,692 $284,390 $274,553 $284,075 Portfolio turnover ......................................... 11% 36% 7% 14% 0% Net assets of common shareholders, end of year (000) ....... 295,028 $292,371 $280,743 $280,965 $274,320 Preferred shares outstanding (000) ......................... 170,400 $170,400 $170,400 $170,400 $130,000 Asset coverage per preferred share, end of year ............ $ 68,288 $ 67,895 $ 66,195 $ 66,242 $ 77,768
---------- (1) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information in the above 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 year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 63 FINANCIAL HIGHLIGHTS BLACKROCK MUNICIPAL 2018 TERM TRUST (BPK)
FOR THE PERIOD YEAR ENDED DECEMBER 31, SEPTEMBER 30, 2003(1) ------------------------------ THROUGH 2003 2002 DECEMBER 31, 2001(2),(3) -------- -------- ------------------------ PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ................. $ 14.66 $ 13.66 $ 14.33(4) -------- -------- -------- Investment operations: Net investment income ............................. 1.21 1.17 0.10 Net realized and unrealized gain (loss) ........... 0.52 0.73 (0.55) Dividends to preferred shareholders from net investment income ........................... (0.08) (0.12) (0.01) -------- -------- -------- Net increase (decrease) from investment operations ... 1.65 1.78 (0.46) -------- -------- -------- Dividends to common shareholders from net investment income ............................. (0.78) (0.78) (0.07) -------- -------- -------- Capital charges with respect to issuance of: Common shares ..................................... -- -- (0.03) Preferred shares .................................. -- -- (0.11) -------- -------- -------- Total capital charges ................................ -- -- (0.14) -------- -------- -------- Net asset value, end of period ....................... $ 15.53 $ 14.66 $ 13.66 ======== ======== ======== Market price, end of period .......................... $ 14.36 $ 13.43 $ 13.06 ======== ======== ======== TOTAL INVESTMENT RETURN(5) ........................... 12.92% 8.84% (12.51)% ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6) Expenses after fees paid indirectly .................. 0.93% 0.92% 0.93%(7) Expenses before fees paid indirectly ................. 0.94% 0.94% 0.93%(7) Net investment income before preferred share dividends 8.21% 8.14% 4.39%(7) Preferred share dividends ............................ 0.57% 0.84% 0.28%(7) Net investment income available to common shareholders 7.64% 7.30% 4.11%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ...... $235,575 $227,674 $206,486 Portfolio turnover ................................... 15% 53% 0% Net assets of common shareholders, end of period (000) $247,032 $233,233 $217,229 Preferred shares outstanding (000) ................... $137,600 $137,600 $137,600 Asset coverage per preferred share, end of period .... $ 69,887 $ 67,381 $ 64,485
---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (3) Calculated using the average shares outstanding method. (4) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (5) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (6) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (7) Annualized. The information in the above Financial Highlights represents the 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 the Trust's common shares. See Notes to Financial Statements. 64 FINANCIAL HIGHLIGHTS BLACKROCK MUNICIPAL 2020 TERM TRUST (BKK)
FOR THE PERIOD SEPTEMBER 30, 2003(1) THROUGH DECEMBER 31, 2003 --------------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ............................ $ 14.33(2) -------- Investment operations: Net investment income ........................................ 0.15 Net realized and unrealized gain ............................. 0.25 Dividends to preferred shareholders from net investment income (0.01) -------- Net increase from investment operations ......................... 0.39 -------- Dividends to common shareholders from net investment income ..... (0.16) -------- Capital charges with respect to issuance of: Common shares ................................................ (0.03) Preferred shares ............................................. (0.02) -------- Total capital charges ........................................... (0.05) -------- Net asset value, end of period .................................. $ 14.51 ======== Market price, end of period ..................................... $ 15.00 ======== TOTAL INVESTMENT RETURN(3) ...................................... 1.05% ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(4),(5) Expenses after fees paid indirectly ............................. 0.85% Expenses before fees paid indirectly ............................ 0.87% Net investment income before preferred share dividends .......... 4.25% Preferred share dividends ....................................... 0.30% Net investment income available to common shareholders .......... 3.95% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ................. $279,827 Portfolio turnover .............................................. 17% Net assets of common shareholders, end of period (000) .......... $293,598 Preferred shares outstanding (000) .............................. $177,600 Asset coverage per preferred share, end of period ............... $ 66,332
---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (3) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (4) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (5) Annualized. The information in the above Financial Highlights represents the 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 the Trust's common shares. See Notes to Financial Statements. 65 FINANCIAL HIGHLIGHTS BLACKROCK MUNICIPAL TARGET TERM TRUST (BMN)
YEAR ENDED DECEMBER 31, ------------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) -------- -------- -------- -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ......................... $ 11.16 $ 10.57 $ 10.67 $ 10.60 $ 11.21 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................... 0.62 0.70 0.83 0.90 0.85 Net realized and unrealized gain (loss) ................. (0.16) 0.62 (0.10) 0.05 (0.68) Dividends and distributions to preferred shareholders: Net investment income ................................. (0.06) (0.08) (0.17) (0.26) (0.16) Net realized gain ..................................... -- (0.01) (0.02) -- -- -------- -------- -------- -------- -------- Net increase from investment operations .................... 0.40 1.23 0.54 0.69 0.01 -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: Net investment income .................................... (0.57) (0.60) (0.58) (0.60) (0.62) Net realized gain ........................................ (0.02) (0.04) (0.06) -- -- -------- -------- -------- -------- -------- Total dividends and distributions .......................... (0.59) (0.64) (0.64) (0.60) (0.62) -------- -------- -------- -------- -------- Capital charges with respect to issuance of preferred shares -- -- -- (0.02) -- -------- -------- -------- -------- -------- Net asset value, end of year ............................... $ 10.97 $ 11.16 $ 10.57 $ 10.67 $ 10.60 ======== ======== ======== ======== ======== Market price, end of year .................................. $ 10.95 $ 11.01 $ 10.40 $ 9.94 $ 9.81 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ................................. 4.99% 12.28% 11.16% 7.63% (8.43)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses after fees paid indirectly ........................ 0.96% 0.97% 0.96% 1.00% 0.87% Expenses before fees paid indirectly ....................... 0.96% 0.97% 0.98% 1.00% 0.87% Net investment income before preferred share dividends ..... 5.60% 6.44% 7.73% 8.61% 7.72% Preferred share dividends .................................. 0.54% 0.75% 1.57% 2.48% 1.49% Net investment income available to common shareholders ..... 5.06% 5.69% 6.16% 6.13% 6.23% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............ $504,660 $494,694 $489,251 $477,169 $497,324 Portfolio turnover ......................................... 4% 18% 42% 5% 4% Net assets of common shareholders, end of year (000) ....... $498,283 $506,952 $480,172 $484,646 $481,463 Preferred shares outstanding (000) ......................... $299,100 $299,100 $299,100 $299,100 $225,000 Asset coverage per preferred share, end of year ............ $ 66,654 $ 67,379 $ 65,141 $ 65,530 $ 78,514
---------- (1) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed, for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. The information in the above 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 year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 66 FINANCIAL HIGHLIGHTS BLACKROCK STRATEGIC MUNICIPAL TRUST (BSD)
FOR THE PERIOD YEAR ENDED DECEMBER 31, AUGUST 25, 1999(1) ------------------------------------------------ THROUGH 2003 2002 2001(2) 2000(2) DECEMBER 31, 1999(2) -------- -------- -------- -------- -------------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period .................... $ 15.01 $ 14.33 $ 14.75 $ 13.39 $ 14.33(3) -------- -------- -------- -------- -------- Investment operations: Net investment income ................................ 1.23 1.26 1.25 1.22 0.30 Net realized and unrealized gain (loss) .............. 0.68 0.42 (0.58) 1.41 (0.79) Dividends and distributions to preferred shareholders: Net investment income .............................. (0.08) (0.12) (0.23) (0.35) (0.06) In excess of net investment income ................. -- -- -- (0.01) -- -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ...... 1.83 1.56 0.44 2.27 (0.55) -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: Net investment income ................................ (0.93) (0.88) (0.86) (0.88) (0.23) In excess of net investment income ................... -- -- -- (0.03) -- -------- -------- -------- -------- -------- Total dividends and distributions ....................... (0.93) (0.88) (0.86) (0.91) (0.23) -------- -------- -------- -------- -------- Capital charges with respect to issuance of: Common shares ........................................ -- -- -- -- (0.03) Preferred shares ..................................... -- -- -- -- (0.13) -------- -------- -------- -------- -------- Total capital charges ................................... -- -- -- -- (0.16) ======== ======== ======== ======== ======== Net asset value, end of period .......................... $ 15.91 $ 15.01 $ 14.33 $ 14.75 $ 13.39 ======== ======== ======== ======== ======== Market price, end of period ............................. $ 14.69 $ 13.78 $ 13.58 $ 13.69 $ 12.50 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(4) .............................. 13.75% 8.03% 5.32% 17.44% (15.17)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(5) Expenses after fees waived and paid indirectly .......... 0.91% 0.98% 0.91% 0.90% 0.94%(6) Expenses before fees waived and paid indirectly ......... 1.30% 1.39% 1.31% 1.30% 1.35%(6) Net investment income before preferred share dividends ...................................... 8.09% 8.54% 8.40% 8.86% 6.24%(6) Preferred share dividends ............................... 0.54% 0.78% 1.58% 2.60% 1.16%(6) Net investment income available to common shareholders .................................. 7.55% 7.76% 6.82% 6.26% 5.08%(6) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ......... $110,385 $106,807 $107,381 $100,171 $ 98,300 Portfolio turnover ...................................... 8% 13% 4% 44% 4% Net assets of common shareholders, end of period (000) .. $115,246 $108,721 $103,783 $106,833 $ 96,971 Preferred shares outstanding (000) ...................... $ 62,000 $ 62,000 $ 62,000 $ 62,000 $ 62,000 Asset coverage per preferred share, end of period ....... $ 71,476 $ 68,844 $ 66,855 $ 68,092 $ 64,109
---------- (1) Commencement of investment operations. This information includes the initial investments by BlackRock Financial Management, Inc. (2) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (3) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (4) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (5) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (6) Annualized. The information in the above 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 the Trust's common shares. See Notes to Financial Statements. 67 FINANCIAL HIGHLIGHTS BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST (BFC)
YEAR ENDED DECEMBER 31, ------------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) -------- -------- -------- -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ......................... $ 17.34 $ 16.77 $ 16.72 $ 16.11 $ 17.12 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................... 0.96 1.18 1.27 1.27 1.17 Net realized and unrealized gain (loss) ................. 0.06 0.48 (0.19) 0.52 (1.20) Dividends and distributions to preferred shareholders: Net investment income ................................. (0.07) (0.11) (0.24) (0.35) (0.21) Net realized gain ..................................... (0.01) (0.03) (0.01) -- -- -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ......... 0.94 1.52 0.83 1.44 (0.24) -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: Net investment income ................................... (1.00) (0.81) (0.77) (0.77) (0.77) Net realized gain ....................................... (0.09) (0.14) (0.02) -- -- -------- -------- -------- -------- -------- Total dividends and distributions .......................... (1.09) (0.95) (0.79) (0.77) (0.77) -------- -------- -------- -------- -------- Capital changes with respect to issuance of preferred shares -- -- 0.01 (0.06) -- -------- -------- -------- -------- -------- Net asset value, end of year ............................... $ 17.19 $ 17.34 $ 16.77 $ 16.72 $ 16.11 ======== ======== ======== ======== ======== Market price, end of year .................................. $ 17.09 $ 16.44 $ 15.90 $ 15.63 $ 13.88 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ................................. 10.90% 9.56% 7.06% 18.68% (8.40)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses after fees paid indirectly ........................ 1.04% 1.05% 1.08% 1.11% 0.98% Expenses before fees paid indirectly ....................... 1.04% 1.06% 1.09% 1.11% 0.98% Net investment income before preferred share dividends ..... 5.51% 6.91% 7.57% 7.74% 7.01% Preferred share dividends .................................. 0.38% 0.64% 1.45% 2.14% 1.25% Net investment income available to common shareholders ..... 5.13% 6.27% 6.12% 5.60% 5.76% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............ $180,408 $177,861 $176,424 $170,286 $174,070 Portfolio turnover ......................................... 15% 33% 5% 0% 0% Net assets of common shareholders, end of year (000) ....... $178,854 $180,498 $174,487 $173,974 $167,672 Preferred shares outstanding (000) ......................... $104,550 $104,550 $104,550 $104,550 $ 78,000 Asset coverage per preferred share, end of year ............ $ 67,776 $ 68,161 $ 66,735 $ 66,629 $ 78,765
---------- (1) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information in the above 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 year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 68 FINANCIAL HIGHLIGHTS BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST (BJZ)
FOR THE PERIOD YEAR ENDED DECEMBER 31, OCTOBER 30, 2001(1) ------------------------------ THROUGH 2003 2002 DECEMBER 31, 2001(2),(3) -------- -------- ------------------------ PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period(4) .............. $ 14.59 $ 13.63 $ 14.33 -------- -------- -------- Investment operations: Net investment income ............................. 1.04 1.03 0.09 Net realized and unrealized gain (loss) ........... (0.06) 0.78 (0.57) Dividends to preferred shareholders from net investment income ........................... (0.07) (0.11) (0.01) -------- -------- -------- Net increase (decrease) from investment operations ... 0.91 1.70 (0.49) -------- -------- -------- Dividends to common shareholders from net investment income ........................ (0.73) (0.74) (0.06) -------- -------- -------- Capital charges with respect to issuance of: Common shares ..................................... -- -- (0.03) Preferred shares .................................. -- -- (0.12) -------- -------- -------- Total capital charges ................................ -- -- (0.15) -------- -------- -------- Net asset value, end of period(4) .................... $ 14.77 $ 14.59 $ 13.63 ======== ======== ======== Market price, end of period(4) ....................... $ 13.42 $ 13.40 $ 12.85 ======== ======== ======== TOTAL INVESTMENT RETURN(5) ........................... 5.67% 10.04% (13.94)% ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6) Expenses after fees paid indirectly .................. 1.03% 0.99% 1.07%(7) Expenses before fees paid indirectly ................. 1.03% 1.03% 1.07%(7) Net investment income before preferred share dividends 7.29% 7.33% 3.78%(7) Preferred share dividends ............................ 0.51% 0.81% 0.27%(7) Net investment income available to common shareholders 6.78% 6.52% 3.51%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ...... $ 92,324 $ 90,721 $ 82,906 Portfolio turnover ................................... 9% 42% 0% Net assets of common shareholders, end of period (000) $ 95,047 $ 93,844 $ 87,664 Preferred shares outstanding (000) ................... $ 55,528 $ 55,525 $ 55,525 Asset coverage per preferred share, end of period .... $ 67,796 $ 67,254 $ 64,488
---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (3) Calculated using the average shares outstanding method. (4) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (5) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (6) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (7) Annualized. The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 69 FINANCIAL HIGHLIGHTS BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST (BRF)
YEAR ENDED DECEMBER 31, ------------------------------------------------------------------ 2003 2002 2001(1) 2000(1) 1999(1) -------- -------- -------- -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ......................... $ 16.41 $ 16.01 $ 15.84 $ 15.56 $ 16.51 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................... 0.88 1.12 1.25 1.24 1.17 Net realized and unrealized gain (loss) ................. 0.13 0.36 (0.04) 0.28 (1.02) Dividends and distributions to preferred shareholders: Net investment income ................................. (0.06) (0.11) (0.25) (0.37) (0.24) Net realized gain ..................................... (0.02) (0.04) (0.01) -- -- -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ......... 0.93 1.33 0.95 1.15 (0.09) -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: Net investment income ................................... (0.81) (0.75) (0.75) (0.81) (0.86) Net realized gain ....................................... (0.10) (0.18) (0.04) -- -- -------- -------- -------- -------- -------- Total dividends and distributions .......................... (0.91) (0.93) (0.79) (0.81) (0.86) -------- -------- -------- -------- -------- Capital charges with respect to issuance of preferred shares -- -- 0.01 (0.06) -- -------- -------- -------- -------- -------- Net asset value, end of year ............................... $ 16.43 $ 16.41 $ 16.01 $ 15.84 $ 15.56 ======== ======== ======== ======== ======== Market price, end of year .................................. $ 16.19 $ 15.91 $ 15.40 $ 14.00 $ 14.13 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ................................. 7.64% 9.61% 15.90% 4.96% (11.12)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses after fees paid indirectly ........................ 1.05% 1.05% 1.10% 1.14% 0.99% Expenses before fees paid indirectly ....................... 1.05% 1.06% 1.12% 1.14% 0.99% Net investment income before preferred share dividends ..... 5.34% 6.90% 7.75% 7.94% 7.25% Preferred share dividends .................................. 0.39% 0.70% 1.55% 2.39% 1.50% Net investment income available to common shareholders ..... 4.95% 6.20% 6.20% 5.55% 5.75% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............ $144,071 $141,064 $140,004 $135,492 $140,225 Portfolio turnover ......................................... 6% 52% 7% 0% 3% Net assets of common shareholders, end of year (000) ....... $143,082 $142,920 $139,367 $137,917 $135,459 Preferred shares outstanding (000) ......................... $ 84,169 $ 84,150 $ 84,150 $ 84,150 $ 66,000 Asset coverage per preferred share, end of year ............ $ 67,514 $ 67,460 $ 66,406 $ 65,982 $ 76,312
---------- (1) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information in the above 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 year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 70 FINANCIAL HIGHLIGHTS BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUST (BFO)
FOR THE PERIOD SEPTEMBER 30, 2003(1) THROUGH DECEMBER 31, 2003 --------------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ............................ $ 14.33(2) -------- Investment operations: Net investment income ........................................ 0.12 Net realized and unrealized gain ............................. 0.26 Dividends to preferred shareholders from net investment income (0.01) -------- Net increase from investment operations ......................... 0.37 -------- Dividends to common shareholders from net investment income ........................................ (0.15) -------- Capital charges with respect to issuance of: Common shares ................................................ (0.03) Preferred shares ............................................. (0.02) -------- Total capital charges ........................................... (0.05) -------- Net asset value, end of period .................................. $ 14.50 ======== Market price, end of period ..................................... $ 15.39 ======== TOTAL INVESTMENT RETURN(3) ...................................... 3.60% ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(4),(5) Expenses after fees paid indirectly ............................. 1.02% Expenses before fees paid indirectly ............................ 1.05% Net investment income before preferred share dividends .......... 3.45% Preferred share dividends ....................................... 0.30% Net investment income available to common shareholders .......... 3.15% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ................. $ 76,698 Portfolio turnover .............................................. 0% Net assets of common shareholders, end of period (000) .......... $ 80,655 Preferred shares outstanding (000) .............................. $ 48,900 Asset coverage per preferred share, end of period ............... $ 66,237
---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (3) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (4) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (5) Annualized. The information in the above Financial Highlights represents the 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 the Trust's common shares. See Notes to Financial Statements. 71 FINANCIAL HIGHLIGHTS BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST (BLN)
YEAR ENDED DECEMBER 31, ------------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) -------- -------- -------- -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ......................... $ 17.09 $ 16.22 $ 16.17 $ 15.63 $ 16.74 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................... 1.01 1.13 1.25 1.24 1.16 Net realized and unrealized gain (loss) ................. (0.05) 0.75 (0.17) 0.53 (1.18) Dividends and distributions to preferred shareholders: Net investment income ................................. (0.08) (0.11) (0.26) (0.38) (0.23) Net realized gain ..................................... (0.01) (0.03) (0.01) -- -- -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ......... 0.87 1.74 0.81 1.39 (0.25) -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: Net investment income ................................... (0.79) (0.75) (0.75) (0.80) (0.86) Net realized gain ....................................... (0.04) (0.12) (0.02) -- -- -------- -------- -------- -------- -------- Total dividends and distributions .......................... (0.83) (0.87) (0.77) (0.80) (0.86) -------- -------- -------- -------- -------- Capital changes with respect to issuance of preferred shares -- -- 0.01 (0.05) -- -------- -------- -------- -------- -------- Net asset value, end of year ............................... $ 17.13 $ 17.09 $ 16.22 $ 16.17 $ 15.63 ======== ======== ======== ======== ======== Market price, end of year .................................. $ 16.96 $ 16.22 $ 15.50 $ 14.75 $ 14.69 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ................................. 9.88% 10.47% 10.48% 6.10% (6.96)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses after fees paid indirectly ........................ 1.03% 1.04% 1.10% 1.12% 0.99% Expenses before fees paid indirectly ....................... 1.03% 1.05% 1.10% 1.12% 0.99% Net investment income before preferred share dividends ..... 5.85% 6.75% 7.59% 7.85% 7.13% Preferred share dividends .................................. 0.48% 0.68% 1.56% 2.40% 1.42% Net investment income available to common shareholders ..... 5.37% 6.07% 6.03% 5.45% 5.71% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............ $192,958 $187,970 $184,600 $177,057 $183,111 Portfolio turnover ......................................... 7% 31% 9% 0% 0% Net assets of common shareholders, end of year (000) ....... $192,801 $192,337 $182,611 $182,075 $175,961 Preferred shares outstanding (000) ......................... $109,550 $109,550 $109,550 $109,550 $ 85,500 Asset coverage per preferred share, end of year ............ $ 69,000 $ 68,893 $ 66,674 $ 66,596 $ 76,489
---------- (1) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information in the above 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 year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 72 FINANCIAL HIGHLIGHTS BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST (BLH)
FOR THE PERIOD YEAR ENDED DECEMBER 31, OCTOBER 30, 2001(1) ------------------------------ THROUGH 2003 2002 DECEMBER 31, 2001(2),(3) -------- -------- ------------------------ PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ................. $ 15.11 $ 13.58 $ 14.33(4) -------- -------- -------- Investment operations: Net investment income ............................. 1.06 1.01 0.09 Net realized and unrealized gain (loss) ........... 0.18 1.37 (0.61) Dividends to preferred shareholders from net investment income ...................... (0.08) (0.11) (0.01) -------- -------- -------- Net increase (decrease) from investment operations ... 1.16 2.27 (0.53) -------- -------- -------- Dividends to common shareholders from net investment income ........................ (0.74) (0.74) (0.06) -------- -------- -------- Capital charges with respect to issuance of: Common shares ..................................... -- -- (0.03) Preferred shares .................................. -- -- (0.13) -------- -------- -------- Total capital charges ................................ -- -- (0.16) -------- -------- -------- Net asset value, end of period ....................... $ 15.53 $ 15.11 $ 13.58 ======== ======== ======== Market price, end of period .......................... $ 14.70 $ 13.46 $ 13.15 ======== ======== ======== TOTAL INVESTMENT RETURN(5) ........................... 14.94% 7.96% (11.94)% ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6) Expenses after fees paid indirectly .................. 1.12% 1.13% 1.15%(7) Expenses before fees paid indirectly ................. 1.14% 1.17% 1.15%(7) Net investment income before preferred share dividends 7.03% 7.03% 3.73%(7) Preferred share dividends ............................ 0.53% 0.80% 0.26%(7) Net investment income available to common shareholders 6.50% 6.23% 3.47%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ...... $ 54,510 $ 52,265 $ 47,959 Portfolio turnover ................................... 11% 41% 1% Net assets of common shareholders, end of period (000) $ 56,415 $ 54,881 $ 49,353 Preferred shares outstanding (000) ................... $ 31,400 $ 31,400 $ 31,400 Asset coverage per preferred share, end of period .... $ 69,917 $ 68,702 $ 64,311
---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (3) Calculated using the average shares outstanding method. (4) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (5) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (6) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (7) Annualized. The information in the above Financial Highlights represents the 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 the Trust's common shares. See Notes to Financial Statements. 73 FINANCIAL HIGHLIGHTS BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST (BPS)
FOR THE PERIOD YEAR ENDED DECEMBER 31, AUGUST 25, 1999(1) ----------------------------------------------- THROUGH 2003 2002 2001(2) 2000(2) DECEMBER 31, 1999(2) -------- -------- -------- -------- -------------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period .................... $ 15.61 $ 14.65 $ 14.62 $ 13.40 $ 14.33(3) -------- -------- -------- -------- -------- Investment operations: Net investment income ................................ 1.12 1.17 1.17 1.18 0.27 Net realized and unrealized gain (loss) .............. 0.30 0.73 (0.08) 1.29 (0.66) Dividends and distributions to preferred shareholders: From net investment income ......................... (0.07) (0.11) (0.24) (0.33) (0.06) In excess of net investment income ................. -- -- -- (0.03) -- -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ...... 1.35 1.79 0.85 2.11 (0.45) -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: From net investment income ........................... (0.87) (0.83) (0.82) (0.82) (0.21) In excess of net investment income ................... -- -- -- (0.06) (0.02) -------- -------- -------- -------- -------- Total dividends and distributions ....................... (0.87) (0.83) (0.82) (0.88) (0.23) -------- -------- -------- -------- -------- Capital charges with respect to issuance of: Common shares ........................................ -- -- -- -- (0.03) Preferred shares ..................................... -- -- -- (0.01) (0.22) -------- -------- -------- -------- -------- Total capital charges ................................... -- -- -- (0.01) (0.25) -------- -------- -------- -------- -------- Net asset value, end of period .......................... $ 16.09 $ 15.61 $ 14.65 $ 14.62 $ 13.40 ======== ======== ======== ======== ======== Market price, end of period ............................. $ 15.12 $ 14.33 $ 14.03 $ 13.13 $ 13.38 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(4) .............................. 11.91% 8.19% 13.12% 5.08% (9.43)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(5) Expenses after fees waived and paid indirectly .......... 1.12% 1.34% 1.11% 1.22% 1.20%(6) Expenses before fees waived and paid indirectly ......... 1.54% 1.75% 1.55% 1.63% 1.61%(6) Net investment income before preferred share dividends ...................................... 7.09% 7.69% 7.86% 8.49% 5.63%(6) Preferred share dividends ............................... 0.46% 0.71% 1.63% 2.60% 1.17%(6) Net investment income available to common shareholders ......................................... 6.63% 6.98% 6.23% 5.89% 4.46%(6) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ......... $ 31,892 $ 30,545 $ 30,122 $ 27,920 $ 26,882 Portfolio turnover ...................................... 0% 7% 16% 28% 1% Net assets of common shareholders, end of period (000) .. $ 32,435 $ 31,454 $ 29,531 $ 29,469 $ 26,995 Preferred shares outstanding (000) ...................... $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500 Asset coverage per preferred share, end of period ....... $ 71,341 $ 69,939 $ 67,194 $ 67,112 $ 63,571
---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Financial Management, Inc. (2) Amounts have been restated to conform to the presentation under the provisions of EITF D-98. (3) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (4) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (5) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (6) Annualized. The information in the above 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 the Trust's common shares. 74 NOTES TO FINANCIAL STATEMENTS NOTE 1. ORGANIZATION & ACCOUNTING POLICIES The BlackRock Insured Municipal 2008 Term Trust Inc. ("Municipal Insured 2008"), The BlackRock Insured Municipal Term Trust Inc. ("Insured Municipal"), The BlackRock Municipal Target Term Trust Inc. ("Municipal Target"), The BlackRock California Insured Municipal 2008 Term Trust Inc. ("California Insured 2008") and The BlackRock New York Insured Municipal 2008 Term Trust Inc. ("New York Insured 2008") were organized as Maryland corporations. The BlackRock Municipal 2018 Term Trust ("Municipal 2018"), The BlackRock Municipal 2020 Term Trust ("Municipal 2020"), The BlackRock Strategic Municipal Trust ("Municipal Strategic"), The BlackRock California Municipal 2018 Term Trust ("California 2018"), The BlackRock Florida Municipal 2020 Term Trust ("Florida 2020"), The BlackRock New York Municipal 2018 Term Trust ("New York 2018") and The BlackRock Pennsylvania Strategic Municipal Trust ("Pennsylvania Strategic") were organized as Delaware statutory trusts. The BlackRock Florida Insured Municipal 2008 Term Trust ("Florida Insured 2008") was organized as a Massachusetts business trust. Municipal Insured 2008, Insured Municipal, Municipal 2018, Municipal 2020, Municipal Target and Municipal Strategic are registered as diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. California Insured 2008, California 2018, Florida Insured 2008, Florida 2020, New York Insured 2008, New York 2018 and Pennsylvania Strategic are registered as non-diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. Municipal Insured 2008, California Insured 2008, Florida Insured 2008 and New York Insured 2008 are herein referred to as the 2008 Trusts. Municipal 2018, California 2018 and New York 2018 are herein referred to as the 2018 Trusts. Municipal 2020 and Florida 2020 are herein referred to as the 2020 Trusts. Municipal Strategic and Pennsylvania Strategic are herein referred to as the Strategic Trusts. The 2020 Trusts had no transactions other than each Trust having a sale to BlackRock Funding, Inc. of 8,028 common shares for $115,001. Investment operations for the 2020 Trusts commenced on September 30, 2003. 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 or Board of Directors as the case may be (each, a "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. A futures contract is valued at the last sale price as of the close of the Commodities exchange on which it trades. Short-term investments may be valued at amortized cost. Investments in other investment companies are valued at net asset value. 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/or accretes discount on securities purchased using the interest method. FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by "marking-to-market" on a daily basis to reflect the market value of the contract at the end of each day's trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust's basis in the contract. Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly. At December 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 deferred compensation plan approved by the Trust's Board, non-interested Trustees are required to defer a portion of their annual complex-wide compensation. Deferred amounts 75 earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end trusts selected by the Trustees. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts. 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/Directors 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 ("PIC") more closely to its tax character the following accounts, for each Trust, were increased (decreased):
TRUST UNII ACCUMULATED GAIN PIC ----- ---- ---------------- --- Municipal Insured 2008 $(118,959) $118,959 $ -- INSURED MUNICIPAL (102,513) 102,513 -- Municipal 2018 (4,022) 4,022 -- Municipal 2020 15,000 -- (15,000) Municipal Target (205,639) 205,639 -- Municipal Strategic (799) 799 -- California Insured 2008 (4,696) 4,696 -- California 2018 (30) 30 -- Florida Insured 2008 (42,028) 42,028 -- Florida 2020 15,000 -- (15,000) New York Insured 2008 (96,556) 96,556 -- New York 2018 -- -- -- Pennsylvania Strategic (1,468) 1,468 --
NOTE 2. AGREEMENTS Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the "Advisor"), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the 2018 Trusts and 2020 Trusts. BlackRock, Inc. is an indirect majority owned subsidiary of The PNCFinancial Services Group, Inc. The investment management agreement on the 2018 Trusts, 2020 Trusts and Strategic Trusts covers both investment advisory and administration services. Each 2008 Trust had an Administration Agreement with Princeton Administrators, L.P. ("Princeton"), an indirect wholly owned affiliate of Merrill Lynch &Co., Inc. Insured Municipal had an Administration Agreement with UBS Global Asset Management (US) Inc. ("UBSGAM") (formerly Brinson Advisors, Inc.), an indirect wholly owned asset management subsidiary of UBS AG. Municipal Target had an Administration Agreement with Prudential Investments LLC ("PI"), an indirect wholly owned subsidiary of Prudential Financial, Inc. Each Trust's investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.35% for the 2008 Trusts, Insured Municipal and Municipal Target, 0.40% for the 2018 Trusts, 0.50% for the 2020 Trusts and 0.60% for the Strategic Trusts, of the Trust's average weekly managed assets. The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses on the Strategic Trusts as a percentage of managed assets as follows: 0.25% for the first five years of each of the Trust's operations, 0.20% in year six, 0.15% in year seven, 0.10% in year eight and 0.05% in year nine. The administration fee paid to each Trust's respective administrator, other than the 2018 Trusts, 2020 Trusts and Strategic Trusts is computed weekly and payable monthly based on an annual rate, 0.10% to UBSGAM and Princeton and 0.07% to PI, of the Trust's average weekly managed assets. On May 22, 2003, the Boards of the 2008 Trusts, Insured Municipal and Municipal Target approved the change of each Trust's current administrator to the Advisor. The new administration agreements become effective September 1, 2003, except for Insured Municipal, which becomes effective August 15, 2003. Each Trust's fee structure, as described above, will remain unchanged under the new administration agreements. Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor. The Advisor pays occupancy and certain clerical and accounting costs for the 2018 Trusts, 2020 Trusts and the Strategic Trusts. Each Trust's administrator pays occupancy and certain clerical and accounting costs of their respective Trust(s). Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for certain operational support services provided to each Trust. Pursuant to the terms of the custody agreement, each Trust received earning credits from its custodian for positive cash balances maintained, which are used to offset custody fees. NOTE 3. PORTFOLIO SECURITIES Purchases and sales of investment securities, other than short-term investments, for the year ended December 31, 2003, were as follows:
TRUST PURCHASES SALES TRUST PURCHASES SALES ----- --------- ----- ----- --------- ----- Municipal Insured 2008 $148,837,448 $131,443,192 California 2018 $ 12,768,260 $19,674,147 Insured Municipal 50,720,318 55,255,303 Florida Insured 2008 13,401,877 16,404,451 Municipal 2018 58,585,736 55,964,881 Florida 2020 101,058,880 -- Municipal 2020 449,661,785 56,499,669 New York Insured 2008 20,444,194 26,212,769 Municipal Target 32,138,832 59,737,448 New York 2018 10,320,773 9,434,014 Municipal Strategic 18,414,141 14,101,406 Pennsylvania Strategic -- 2,565,000 California Insured 2008 40,825,239 42,962,308
76 At December 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 ----- ---- ------------ ------------ --- Municipal Insured 2008 $680,297,418 $53,722,780 $62,679 $53,660,100 Insured Municipal 425,669,945 35,589,414 -- 35,589,414 Municipal 2018 367,606,950 15,415,664 2,216,698 13,198,966 Municipal 2020 461,693,023 7,240,914 14,778 7,226,136 Municipal Target 745,192,523 44,196,646 -- 44,196,646 Municipal Strategic 161,144,824 16,148,192 2,228,927 13,919,265 California Insured 2008 259,938,191 20,470,754 5,729 20,465,025 California 2018 146,485,617 4,621,647 2,160,810 2,460,836 Florida Insured 2008 210,289,965 13,329,061 -- 13,329,061 Florida 2020 130,072,547 2,011,816 43,518 1,968,299 New York Insured 2008 274,514,449 23,619,365 36 23,619,329 New York 2018 81,860,854 4,634,746 148,449 4,486,297 Pennsylvania Strategic 44,945,946 3,787,439 60,065 3,727,374
For Federal income tax purposes, the following Trusts had capital loss carryforwards at December 31, 2003. These amounts may be used to offset future realized capital gains, if any:
CAPITAL LOSS CAPITAL LOSS TRUST CARRYFORWARD AMOUNT EXPIRES TRUST CARRYFORWARD AMOUNT EXPIRES ----- ------------------- ------- ----- ------------------- ------- Insured Municipal $ 1,308 2011 New York 2018 $ 668,608 2010 ========== Municipal 2018 $2,036,899 2010 431,368 2010 ========== ---------- Municipal Strategic $ 78,019 2008 $1,099,976 ========== 1,802,842 2009 Pennsylvania Strategic 89,327 2009 760,288 2010 408,700 2010 ---------- ---------- $2,641,149 $ 498,027 ========== ========== California 2018 $1,287,186 2010 ==========
Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward amounts. Each of the Strategic Trusts has a tax year-end of June 30th. NOTE 4. CAPITAL There are 200 million of $0.01 par value common shares authorized for each of the 2008 Trusts, Insured Municipal and Municipal Target. There are an unlimited number of $0.001 par value common shares authorized for each of the 2018 Trusts, 2020 Trusts and Strategic Trusts. Each Trust may classify or reclassify any unissued common shares into one or more series of preferred shares. At December 31, 2003, the common shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:
COMMON SHARES COMMON SHARES COMMON TRUST OUTSTANDING SHARES OWNED TRUST OUTSTANDING SHARES OWNED ----- ----------- ------------ ----- ----------- ------------ Municipal Insured 2008 27,207,093 -- California 2018 6,433,028 8,028 Insured Municipal 25,885,639 -- Florida Insured 2008 8,707,093 -- Municipal 2018 15,908,028 8,028 Florida 2020 5,562,128 8,028 Municipal 2020 20,236,628 8,028 New York Insured 2008 11,257,093 -- Municipal Target 45,410,639 -- New York 2018 3,633,028 8,028 Municipal Strategic 7,242,261 -- Pennsylvania Strategic 2,015,492 -- California Insured 2008 10,407,093 --
TRANSACTIONS IN COMMON SHARES OF BENEFICIAL INTEREST FOR THE PERIOD ENDED DECEMBER 31, 2003 WERE AS FOLLOWS:
SHARES FROM ----------------------------------------------------------- UNDERWRITERS' EXERCISING THE NET INCREASE INITIAL PUBLIC OVER-ALLOTMENT REINVESTMENT IN SHARES TRUST OFFERING OPTION OF DIVIDENDS OUTSTANDING ----- -------------- -------------- ------------ ------------ Municipal 2020 18,508,028 1,728,600 -- 20,236,628 Florida 2020 5,008,028 554,100 -- 5,562,128
Offering Costs incurred in connection with the offering of common shares for the Municipal 2020 Term Turst and Florida Municipal 2020 Term Trust have been charged against the proceeds from the initial common share offering of the common shares in the amounts of $540,000 and $135,000, respectively. 77 As of December 31, 2003, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.
TRUST SERIES SHARES TRUST SERIES SHARES ----- ------ ------ ----- ------ ------ Municipal Insured 2008 T7 4,660 Municipal Strategic W7 2,480 R7 2,060 California Insured 2008 W7 2,622 T28 2,060 W28 1,560 R28 2,060 California 2018 M7 2,221 Insured Municipal M7 4,216 Florida Insured 2008 R7 3,366 M28 2,600 FLORIDA 2020 F7 1,956 Municipal 2018 W7 2,752 New York Insured 2008 F7 2,672 R7 2,752 F28 1,710 Municipal 2020 M7 2,368 New York 2018 T7 1,256 W7 2,368 Pennsylvania Strategic W7 700 F7 2,368 Municipal Target W7 5,964 F7 3,000 W28 3,000
Underwriting discounts and offering costs incurred in connection with the 2020 Trust's preferred share offering have been charged to paid-in capital in excess of par of the common shares.
UNDERWRITING OFFERING UNDERWRITING OFFERING TRUST DISCOUNT COST TRUST DISCOUNT COST ----- ------------ -------- ------------ ------------ -------- Municipal 2020 $1,776,000 $320,320 Florida 2020 $489,000 $130,560
Dividends on 7-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. Dividends on 28-day preferred shares are cumulative at a rate which is reset every 28 days based on the results of an auction. The dividend ranges on the preferred shares for each of the Trusts for the year ended December 31, 2003, were as follows:
TRUST LOW HIGH TRUST LOW HIGH ----- --- ---- ----- --- ---- Municipal Insured 2008 0.45% 1.80% California 2018 0.40% 1.20% Insured Municipal 0.50 1.29 Florida Insured 2008 0.69 1.84 Municipal 2018 0.40 1.40 Florida 2020 1.05 1.35 Municipal 2020 0.85 1.40 New York Insured 2008 0.44 1.25 Municipal Target 0.48 1.45 New York 2018 0.45 1.25 Municipal Strategic 0.55 1.30 Pennsylvania Strategic 0.40 1.30 California Insured 2008 0.40 1.63
A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares would be less than 200%. The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated or unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust's Declaration of Trust/Articles Supplementary are not satisfied. The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect two Directors/Trustees for each Trust. In addition, the Investment Company Act of 1940, as amended, requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trust's sub- classification as a closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company. 78 NOTE 5. DIVIDENDS Subsequent to December 31, 2003, the Board of each Trust declared dividends from undistributed earnings per common share payable February 2, 2004, to shareholders of record on January 15, 2004. The per share common dividends declared were:
COMMON DIVIDEND COMMON DIVIDEND TRUST PER SHARE TRUST PER SHARE ----- --------------- ----- --------------- Municipal Insured 2008 $0.066250 California 2018 $0.061250 Insured Municipal 0.047917 Florida Insured 2008 0.062500 Municipal 2018 0.065000 Florida 2020 0.075000 Municipal 2020 0.078125 New York Insured 2008 0.062500 Municipal Target 0.047917 New York 2018 0.061250 Municipal Strategic 0.079585 Pennsylvania Strategic 0.073965 California Insured 2008 0.064375
The dividends declared on preferred shares for the period January 1, 2004 to January 31, 2004, for each of the Trusts were as follows:
DIVIDENDS DIVIDENDS TRUST SERIES DECLARED TRUST SERIES DECLARED ----- ------ --------- ----- ------ --------- Municipal Insured 2008 T7 $ 79,173 California Insured 2008 W7 $54,695 R7 39,634 W28 27,518 T28 34,361 California 2018 M7 37,602 R28 78,980 Florida Insured 2008 R7 67,455 Insured Municipal M7 78,207 Florida 2020 F7 37,030 M28 42,874 New York Insured 2008 F7 42,218 Municipal 2018 W7 56,740 F28 26,556 R7 55,398 New York 2018 T7 17,622 Municipal 2020 M7 42,008 Pennsylvania Strategic W7 13,853 W7 53,020 F7 42,150 Municipal Target W7 116,537 F7 53,520 W28 48,840 Municipal Strategic W7 49,727
79 INDEPENDENT AUDITORS' REPORT To the Board of Directors\Trustees and Shareholders of: BlackRock Insured Municipal 2008 Term Trust Inc. BlackRock Insured Municipal Term Trust Inc. BlackRock Municipal 2018 Term Trust BlackRock Municipal 2020 Term Trust BlackRock Municipal Target Term Trust Inc. BlackRock Strategic Municipal Trust BlackRock California Insured Municipal 2008 Term Trust Inc. BlackRock California Municipal 2018 Term Trust BlackRock Florida Insured Municipal 2008 Term Trust BlackRock Florida Municipal 2020 Term Trust BlackRock New York Insured Municipal 2008 Term Trust Inc. BlackRock New York Municipal 2018 Term Trust BlackRock Pennsylvania Strategic Municipal Trust We have audited the accompanying statements of assets and liabilities of the each of the above mentioned Trusts (collectively, the "Trusts"), including the portfolios of investments, as of December 31, 2003, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements and financial highlights 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 December 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 December 31, 2003, the results of their operations for the year than ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Boston, Massachusetts February 18, 2004 80 DIRECTORS/TRUSTEES INFORMATION (UNAUDITED) ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT DIRECTORS/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 Director/Trustee Director/Trustee Director/Trustee the Trusts Audit Committee Chairman(2) Audit Committee Member Audit Committee Member(2) ------------------------------------------------------------------------------------------------------------------------------------ Term of office and length of 3 years(4) / since inception 3 years(4) / since inception(5) 3 years(4) / since inception time served ------------------------------------------------------------------------------------------------------------------------------------ Principal occupations during President of Brimmer & President and Chief Executive Consultant/Investor. Former the past five years Company, Inc., a Washington, Officer of The Conference President and Chief Executive D.C.-based economic and Board, Inc., a leading global Officer of Empire Federal financial consulting firm, business membership Savings Bank of America and also Wilmer D. Barrett organization, from Banc PLUS Savings Association, Professor of Economics, 1995-present. Former Executive former Chairman of the Board, University of Massachusetts - Dean of the John F. Kennedy President and Chief Executive Amherst. Formerly member of School of Government at Officer of Northeast Savings. the Board of Governors of the Harvard University from Federal Reserve System. Former 1988-1995. Acting Director, Chairman, District of Columbia Harvard Center for Business Financial Control Board. and Government (1991-1993). 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 overseen 49 49 49 within the fund complex ------------------------------------------------------------------------------------------------------------------------------------ Other Directorships held Director of CarrAmerica Realty Trustee: Airplanes Group, Former Director of ISFA (the outside of the fund complex Corporation and Borg-Warner Aircraft Finance Trust (AFT) owner of INVEST, a national Automotive. Formerly Director and Educational Testing securities brokerage service of Airborne Express, Service (ETS). Director, Arch designed for banks and thrift BankAmerica Corporation (Bank Chemicals, Fremont Group and institutions). of America), Bell South The Guardian Life Insurance 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 Director/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) Director/Trustee since inception; appointed Chairman of the Board on 08/22/02. (4) The Board is classified into three classes of which one class is elected annually. Each Director/Trustee serves a three-year term concurrent with the class from which he is elected. (5) For the 2008 Trusts, Insured Municipal and Municipal Target appointed Director on 08/11/94. (6) For Insured Municipal and Municipal Target appointed Director on 06/19/92. (7) Except during the periods 8/12/93 through 4/15/97 and 10/31/02 through 11/11/02 for all of the Trusts. 81 ---------------------------------------------------------------------------------------------------------- INDEPENDENT DIRECTORS/TRUSTEES (CONTINUED) ---------------------------------------------------------------------------------------------------------- Frank J. Fabozzi James Clayburn La Force, Jr. Walter F. Mondale 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: 55 Age: 75 Age: 76 ---------------------------------------------------------------------------------------------------------- Director/Trustee Director/Trustee Director/Trustee ---------------------------------------------------------------------------------------------------------- 3 years(4) / since inception 3 years(4) / since inception(6) 3 years(4) / since inception(7) ---------------------------------------------------------------------------------------------------------- Consultant. Editor of THE Dean Emeritus of the John E. Senior Counsel, Dorsey & JOURNAL OF PORTFOLIO Anderson Graduate School of Whitney, LLP., a law firm MANAGEMENT and Frederick Frank Management, University of (January 2004-present); Adjunct Professor of Finance California since July 1, 1993. Partner, Dorsey & Whitney, at the School of Management at Acting Dean of the School of LLP., (December 1996-December Yale University. Author and Business, Hong Kong University 2003, September 1987-August editor of several books on of Science and Technology 1993). Formerly U.S. fixed income portfolio 1990-1993. From 1978 to Ambassador to Japan management. Visiting Professor September 1993, Dean of the (1993-1996). Formerly Vice of Finance and Accounting at John E. Anderson Graduate President of the United the Sloan School of School of Management, States, U.S. Senator and Management, Massachusetts University of California. Attorney General of the State Institute of Technology from of Minnesota. 1984 Democratic 1986 to August 1992. Nominee for President of the United States. ---------------------------------------------------------------------------------------------------------- 49 49 49 ---------------------------------------------------------------------------------------------------------- Director, Guardian Mutual Payden & Rygel Investment Director of United Health Funds Group (18 portfolios). Trust, Metzler-Payden Foundation and the Japan Investment Trust, Advisors Society. Member of the Hubert Series Trust, Arena H. Humphrey Institute of Pharmaceuticals, Inc. and Public Affairs Advisory Board, CancerVax Corporation. The Mike and Maureen Mansfield Foundation, Dean's Board of Visitors of the Medical School at the University of Minnesota, and the Mayo Foundation Advisory Council to the President. ----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- INTERESTED DIRECTORS(1)/TRUSTEES -------------------------------------------------------------------------------- Ralph L. Schlosstein Robert S. Kapito BlackRock,Inc. BlackRock,Inc. 40 East 52nd Street 40 East 52nd Street New York, NY 10022 New York, NY 10022 Age: 52 Age: 46 -------------------------------------------------------------------------------- Chairman of the Board(3) President and Director/Trustee -------------------------------------------------------------------------------- 3 years(4) / since inception 3 years(4) / since August 22, 2002 -------------------------------------------------------------------------------- Director since 1999 and Vice Chairman of BlackRock, President of BlackRock, Inc. Inc. Head of the Portfolio since its formation in 1998 Management Group. Also a and of BlackRock, Inc.'s member of the Management predecessor entities since Committee, the Investment 1988. Member of the Management Strategy Group, the Fixed Committee and Investment Income and Global Operating Strategy Group of BlackRock, Committees and the Equity Inc. Formerly, Managing Investment Strategy Group. Director of Lehman Brothers, Responsible for the portfolio Inc. and Co-head of its management of the Fixed Mortgage and Savings Income, Domestic Equity and Institutions Group. Currently, International Equity, Chairman and a Trustee of each Liquidity, and Alternative of the closed-end Trusts in Investment Groups of which BlackRock Advisors, Inc. BlackRock. Currently President acts as investment advisor. and a Director/Trustee of each of the closed-end Trusts in which BlackRock Advisors, Inc. acts as investment advisor. -------------------------------------------------------------------------------- 49 49 -------------------------------------------------------------------------------- Chairman and President of the Chairman of the Hope and BlackRock Liquidity Funds (10 Heroes Children's Cancer Fund. portfolios), Director of President of the Board of Anthracite Capital, Inc.(7) Directors of the Periwinkle and Director of several of National Theatre for Young BlackRock's alternative Audiences. Director of investment vehicles. icruise.com, Corp. 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 the American Museum of Natural History, 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 of the Director and Vice Chairman of Advisor. the Advisor. --------------------------------------------------------------------------------
82 DIVIDEND REINVESTMENT PLANS Pursuant to each Trust's Dividend Reinvestment Plan (the "Plan"), common shareholders of the 2008 Trusts, Insured Municipal and Municipal Target may elect, while the common shareholders of the 2018 Trusts, 2020 Trusts and Strategic Trusts are automatically enrolled, to have all distributions of dividends and capital gains reinvested by EquiServe Trust Company, N.A. (the "Plan Agent") in the respective Trust's shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan. After a 2008 Trust, Insured Municipal, 2018 Trust, 2020 Trust and/or Municipal Target declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants' account, by the purchase of outstanding shares on the open market, on the Trust's primary exchange or elsewhere ("open market purchases"). These Trusts will not issue any new shares under the Plan. After a Strategic Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants' account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust ("newly issued shares") or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as "market premium"), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant's account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as "market discount"), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution. The Plan Agent's fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions. Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at 150 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM. 83 ADDITIONAL INFORMATION (UNAUDITED) There have been no material changes in the Trusts' investment objectives or policies that have not been approved by the shareholders or to their charters or by-laws or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts' portfolios. 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 and distributions paid by the Trusts during such tax year. Accordingly, during the tax year-ended December 31, 2003, the Trusts (excluding the Strategic Trusts, which have June 30th tax year-ends) paid dividends and distributions per common share as follows: TAX-EXEMPT ORDINARY LONG-TERM TRUST INCOME INCOME CAPITAL GAIN TOTAL ----- ---------- -------- ------------ ----- Municipal Insured 2008 Common Shares $1.017400 $0.002200 $0.124700 $1.144300 Preferred Shares: T7 0.035994 0.000104 0.007778 0.043876 R7 0.013634 0.000044 0.003147 0.016825 T28 0.017558 0.000052 0.003679 0.021289 R28 0.015461 0.000050 0.003550 0.019061 Insured Municipal Common Shares 0.637204 -- 0.024200 0.661404 Preferred Shares: M7 0.034686 -- 0.002360 0.037046 M28 0.021446 -- 0.001533 0.022979 Municipal 2018 Common Shares 0.780000 -- -- 0.780000 Preferred Shares: W7 0.041979 -- -- 0.041979 R7 0.042065 -- -- 0.042065 Municipal Target Common Shares 0.575004 -- 0.024600 0.599604 Preferred Shares: W7 0.028996 -- 0.001301 0.030297 F7 0.014566 -- 0.000720 0.015286 W28 0.016737 -- 0.000775 0.017512 California Insured 2008 Common Shares 0.999000 -- 0.090800 1.089800 Preferred Shares: W7 0.041727 -- 0.007149 0.048876 W28 0.024841 -- 0.004793 0.029635 California 2018 Common Shares 0.735000 -- -- 0.735000 Preferred Shares M7 0.072878 -- -- 0.072878 Florida Insured 2008 Common Shares 0.809800 0.017100 0.084200 0.911100 Preferred Shares R7 0.063833 0.001840 0.016237 0.081911 New York Insured 2008 Common Shares 0.785300 0.008600 0.032300 0.826200 Preferred Shares: F7 0.048716 0.000617 0.002317 0.051650 F28 0.032830 0.000438 0.001645 0.034912 New York 2018 Common Shares 0.866292 -- -- 0.866292 Preferred Shares R7 0.078969 -- -- 0.078969 Quarterly performance and other information regarding the Trusts may be found on BlackRock's website, which can be accessed at http://www.blackrock.com/funds/cefunds/index.html. This reference to BlackRock's website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRock's website into this report. Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or Sub-Advisor: Robert S. Kapito--Director and Vice Chairman of the Advisor and the Sub-Advisor, Kevin M. Klingert, Henry Gabbay and Anne Ackerley--Managing Directors of the Advisor and the Sub-Advisor, Richard M. Shea and James Kong--Managing Directors of the Sub-Advisor, Vincent B. Tritto--Director of the Sub-Advisor, and Brian Kindelan--Director of the Advisor. 84 [This Page Intentionally Left Blank] BLACKROCK CLOSED-END FUNDS Directors/Trustees Ralph L. Schlosstein, CHAIRMAN Andrew F. Brimmer Richard E. Cavanagh Kent Dixon Frank J. Fabozzi Robert S. Kapito James Clayburn La Force, Jr. Walter F. Mondale Officers Robert S. Kapito, PRESIDENT Henry Gabbay, TREASURER Anne Ackerley, VICE PRESIDENT Kevin M. Klingert, VICE PRESIDENT Richard M. Shea, VICE PRESIDENT/TAX James Kong, ASSISTANT TREASURER Vincent B. Tritto, SECRETARY Brian P. Kindelan, ASSISTANT SECRETARY Investment Advisor BlackRock Advisors, Inc. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM Sub-Advisor(1) BlackRock Financial Management, Inc. 40 East 52nd Street New York, NY 10022 Custodian State Street Bank and Trust Company 225 Franklin St. Boston, MA 02110 Transfer Agent EquiServe Trust Company, N.A. 150 Royall Street Canton, MA 02021 (800) 699-1BFM Auction Agent(1) Bank of New York 100 Church Street, 8th Floor New York, NY 10286 Auction Agent(2) Deutsche Bank Trust Company Americas 60 Wall Street, 27th Floor New York, NY 10005 Independent Accountants Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, NY 10036 Legal Counsel - Independent Directors/Trustees Debevoise & Plimpton LLP 919 THIRD AVENUE New York, NY 10022 This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. -------------------------------------------------------------------------------- BlackRockAdvisors, Inc.(3) 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM Municipal 2018 Municipal 2020 Strategic Municipal California Municipal 2018 Florida Municipal 2020 New York Municipal 2018 Pennsylvania Strategic Municipal Princeton Administrators, L.P.(3) P.O. Box 9095 Princeton, NJ 08543-9095 (800) 227-7BFM Insured Municipal 2008 California Insured Municipal 2008 Florida Insured Municipal 2008 New York Insured Municipal 2008 Prudential Investments LLC(3) Gateway Center Three 100 Mulberry Street Newark, NJ 07102-4077 (800) 227-7BFM Municipal Target UBS Global Asset Management (US) Inc.(3) 51 West 52nd Street 21st Floor New York, NY 10019 (800) 227-7BFM Insured Municipal ---------- (1) For the 2018 Trusts and 2020 Trusts. (2) For the Trusts, except the 2018 Trusts and 2020 Trusts. (3) Provided administrative services for the Trust(s) listed directly below its name. Effective September 1, 2003, BlackRock Advisors, Inc. provides the administrative services for all the Trusts. The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called "householding" and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 227-7BFM. The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor's proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1236. These policies and procedures are also available on the website of the Securities and Exchange Commission at http://www.sec.gov. This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust [BLACKROCK's LOGO] shares. Statements and other information contained in this report are as dated and are subject to change. CLF-ANN-4 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" Trustees: 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. (a) AUDIT FEES. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Trust's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $31,400 for the fiscal year ended December 31, 2003 and $0 for the fiscal year ended December 31, 2002. (b) AUDIT-RELATED FEES. The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Trust's financial statements and are not reported above in Item 4(a) were $3,000 for the fiscal year ended December 31, 2003 and $0 for the fiscal year ended December 31, 2002. The nature of these services was attest services not required by statute or regulation, overhead and out-of-pocket expenses. (c) TAX FEES. The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were $1,500 for the fiscal year ended December 31, 2003 and $0 for the fiscal year ended December 31, 2002. The nature of these services was federal, state and local income and excise tax return preparation and related advice and planning and miscellaneous tax advice. (d) ALL OTHER FEES. The were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported above in Items 4(a) through (c). (e) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES. (i) The Trust has polices and procedures (the "Policy") for the pre-approval by the Trust's Audit Committee of Audit, Audit-Related, Tax and Other Services (as each is defined in the Policy) provided by the Trust's independent auditor (the "Independent Auditor") to the Trust and other "Covered Entities" (as defined below). The term of any such pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The amount of any such pre-approval is set forth in the appendices to the Policy (the "Service Pre-Approval Documents"). At its first meeting of each calendar year, the Audit Committee will review and re-approve the Policy and approve or re-approve the Service Pre-Approval Documents for that year, together with any changes deemed necessary or desirable by the Audit Committee. The Audit Committee may, from time to time, modify the nature of the services pre-approved, the aggregate level of fees pre-approved or both. For the purposes of the Policy, "Covered Services" means (A) all engagements for audit and non-audit services to be provided by the Independent Auditor to the Trust and (B) all engagements for non-audit services related directly to the operations and financial reporting or the Trust to be provided by the Independent Auditor to any Covered Entity, "Covered Entities" means (1) the Advisor or (2) any entity controlling, controlled by or under common control with the Advisor that provides ongoing services to the Trust. In the intervals between the scheduled meetings of the Audit Committee, the Audit Committee delegates pre-approval authority under this Policy to the Chairman of the Audit Committee (the "Chairman"). The Chairman shall report any pre-approval decisions under this Policy to the Audit Committee at its next scheduled meeting. At each scheduled meeting, the Audit Committee will review with the Independent Auditor the Covered Services pre-approved by the Chairman pursuant to delegated authority, if any, and the fees related thereto. Based on these reviews, the Audit Committee can modify, at its discretion, the pre-approval originally granted by the Chairman pursuant to delegated authority. This modification can be to the nature of services pre-approved, the aggregate 2 level of fees approved, or both. Pre-approval of Covered Services by the Chairman pursuant to delegated authority is expected to be the exception rather than the rule and the Audit Committee may modify or withdraw this delegated authority at any time the Audit Committee determines that it is appropriate to do so. Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the Audit Committee and set forth in the Service Pre-Approval Documents. Any increase in pre-approved fee levels will require specific pre-approval by the Audit Committee (or the Chairman pursuant to delegated authority). The terms and fees of the annual Audit services engagement for the Trust are subject to the specific pre-approval of the Audit Committee. The Audit Committee (or the Chairman pursuant to delegated authority) will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Trust structure or other matters. In addition to the annual Audit services engagement specifically approved by the Audit Committee, any other Audit services for the Trust not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the Audit Committee (or the Chairman pursuant to delegated authority.) Requests or applications to provide Covered Services that require approval by the Audit Committee (or the Chairman pursuant to delegated authority) must be submitted to the Audit Committee or the Chairman, as the case may be, by both the Independent Auditor and the Chief Financial Officer of the respective Covered Entity, and must include a joint statement as to whether, in their view, (a) the request or application is consistent with the rules of the Securities and Exchange Commission ("SEC") on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC. A request or application submitted to the Chairman between scheduled meetings of the Audit Committee should include a discussion as to why approval is being sought prior to the next regularly scheduled meeting of the Audit Committee. (ii) All of the services rendered after May 22, 2003 described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not applicable. (g) The non-audit fees billed by the Trust's accountant for services rendered to the Trust, the Advisor or any entity controlling, controlled by, or under common control with the Advisor that provides ongoing services to the registrant (except for any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor) that directly impacted the Trust for each of the last two fiscal years were $4,500 for the fiscal year ended December 31, 2003 and $0 for the fiscal year ended December 31, 2002. (h) Not applicable. 3 ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The Trust has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The audit committee of the Trust is comprised of: Dr. Andrew F. Brimmer; Richard E. Cavanagh; and Kent Dixon. 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 99.PROXYPOL 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 are effective, as of a date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely. (b) The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 10. EXHIBITS. (a)(1) Code of Ethics. (a)(2) Section 302 Certification of Principal Executive Officer and Principal Financial Officer. (b) Section 906 Certification of Principal Executive Officer and Principal Financial Officer. 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) BlackRock Municipal 2020 Term Trust -------------------------------------------------------------------- By: /s/ Henry Gabbay ----------------------------------------------------------------------------- Name: Henry Gabbay Title: Treasurer Date: March 8, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert S. Kapito ----------------------------------------------------------------------------- Name: Robert S. Kapito Title: Principal Executive Officer Date: March 8, 2004 By: /s/ Henry Gabbay ----------------------------------------------------------------------------- Name: Henry Gabbay Title: Principal Financial Officer Date: March 8, 2004 5