c54490_ncsrs.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES

Investment Company Act file number 811-10501

Name of Fund: BlackRock Municipal 2018 Term Trust (BPK)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Municipal 2018 Term Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2008

Date of reporting period: 01/01/2008 – 06/30/2008

 



Item 1 – Report to Stockholders

 

EQUITIES  

FIXED INCOME  

REAL ESTATE  

LIQUIDITY  

ALTERNATIVES  

BLACKROCK SOLUTIONS

 

Semi-Annual Report

JUNE 30, 2008 | (UNAUDITED)


 

 

BlackRock Insured Municipal 2008 Term Trust (BRM)

BlackRock Insured Municipal Term Trust (BMT)

BlackRock Municipal 2018 Term Trust (BPK)

BlackRock Municipal 2020 Term Trust (BKK)

BlackRock Strategic Municipal Trust (BSD)

BlackRock California Insured Municipal 2008 Term Trust (BFC)

BlackRock California Municipal 2018 Term Trust (BJZ)

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

BlackRock Florida Municipal 2020 Term Trust (BFO)

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

BlackRock New York Municipal 2018 Term Trust (BLH)

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

 

 


Table of Contents

 

 

Page

 

A Letter to Shareholders

3

Semi-Annual Report:

 

Trust Summaries

4

The Benefits and Risks of Leveraging

16

Swap Agreements

16

Financial Statements:

 

Schedules of Investments

17

Statements of Assets and Liabilities

44

Statements of Operations

46

Statements of Changes in Net Assets

48

Financial Highlights

50

Notes to Financial Statements

62

Important Tax Information

67

Disclosure of Investment Advisory Agreement and Subadvisory Agreement

68

Officers and Trustees

71

Additional Information

72

 

 

 

 

 

 

 

 

 

 

 

 

2

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


A Letter to Shareholders

 

THIS PAGE NOT PART OF YOUR FUND REPORT

 

 

 

Dear Shareholder

Throughout the past year, investors were overwhelmed by lingering credit and financial market troubles, surging oil prices and more recently, renewed inflation concerns. Healthy nonfinancial corporate profits and robust exporting activity remained among the few bright spots, helping the economy to grow at a modest, but still positive, pace.

The Federal Reserve Board (the “Fed”) has been aggressive in its attempts to stoke economic growth and ease financial market instability. In addition to slashing the target federal funds rate 325 basis points (3.25%) between September 2007 and April 2008, the central bank introduced the new Term Securities Lending Facility, granted broker-dealers access to the discount window and used its own balance sheet to help negotiate the sale of Bear Stearns. As widely anticipated, the end of the period saw a pause in Fed action, as the central bank held the target rate steady at 2.0% amid rising inflationary pressures.

As the Fed’s bold response to the financial crisis helped ease credit turmoil and investor anxiety, U.S. equity markets sank sharply over the last six months, notwithstanding a brief rally in the spring. International markets were not immune to the tumult, with most regions also registering declines.

Treasury securities also traded in a volatile fashion, but generally rallied (yields fell as prices correspondingly rose), with investors continuing to seek safety as part of a broader flight to quality. The yield on 10-year Treasury issues, which fell to 3.34% in March 2008, climbed up to the 4.20% range in mid-June as investors temporarily shifted out of Treasury issues in favor of riskier assets (such as stocks and other high-quality fixed income sectors), then reversed course and declined to 3.99% by period-end when credit fears re-emerged.

Tax-exempt issues eked out gains for the reporting period, but underperformed their taxable counterparts, as the group continued to be pressured by problems among municipal bond insurers and the breakdown in the market for auction rate securities.

The major benchmark indexes generated results that largely reflected heightened investor risk aversion:

 

 

 

Total Returns as of June 30, 2008

6-month

12-month

 

 

U.S. equities (S&P 500 Index)

(11.91

)%

(13.12

)%

 

 

Small cap U.S. equities (Russell 2000 Index)

(9.37

)%

(16.19

)%

 

 

International equities (MSCI Europe, Australasia, Far East Index)

(10.96

)%

(10.61

)%

 

 

Fixed income (Lehman Brothers U.S. Aggregate Index)

1.13

%

7.12

%

 

 

Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)

0.02

%

3.23

%

 

 

High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)

(1.08

)%

(1.74

)%

 

 

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only.

You cannot invest directly in an index.

As you navigate today’s volatile markets, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,


Rob Kapito
President, BlackRock Advisors, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 


 

Trust Summary as of June 30, 2008

BlackRock Insured Municipal 2008 Term Trust

 

Investment Objective

BlackRock Insured Municipal 2008 Term Trust (BRM) (the “Trust”) seeks to provide monthly income that is exempt from regular federal income tax and to return $15 per share (the initial offering price per share) to investors on or about December 31, 2008.

 

Performance

For the six months ended June 30, 2008, the Trust returned 1.49% based on market price and 1.49% based on net asset value (“NAV”). For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (3.26)% on a NAV basis. All returns reflect reinvestment of dividends. The portfolio is being managed to achieve the goal of returning $15 per share on 12/31/2008, and is invested with a short duration. This, combined with high credit quality, was the primary driver of the Trust’s outperformance during a period of rising long-term rates. Low reinvestment rates for maturing principal detracted from performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BRM

Initial Offering Date

September 18, 1992

Termination Date (on or about)

December 31, 2008

Yield on Closing Market Price as of June 30, 2008 ($14.99)1

2.04%

Tax Equivalent Yield2

3.14%

Current Monthly Distribution per Common Share3

$0.0255

Current Annualized Distribution per Common Share3

$0.306

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

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

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$14.99

 

$15.03

 

(0.27)%

 

$15.13

 

$14.95

 

Net Asset Value

 

$15.15

 

$15.19

 

(0.26)%

 

$15.28

 

$15.13

 

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

 

Portfolio Composition

 

Sector

6/30/08

 

12/31/07

City, County & State

30

%

 

28

%

Power

23

 

 

26

 

Industrial & Pollution Control

16

 

 

14

 

Transportation

9

 

 

9

 

Water & Sewer

7

 

 

2

 

Lease Revenue

6

 

 

7

 

Education

3

 

 

8

 

Hospital

3

 

 

1

 

Tax Revenue

3

 

 

5

 

 

Credit Quality Allocations4

 

Credit Rating

6/30/08

 

12/31/07

AAA/Aaa

45

%

 

100

%

AA/Aa

55

 

 

 

 

4

Using the higher of Standard and Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.

 

 

 

 

 

 

 

 

 

 

 

4

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock Insured Municipal Term Trust

 

Investment Objective

BlackRock Insured Municipal Term Trust (BMT) (the “Trust”) seeks to provide monthly income that is exempt from regular federal income tax and to return $10 per share (the initial offering price per share) to investors on or about December 31, 2010.

 

Performance

For the six months ended June 30, 2008, the Trust returned 3.89% based on market price and 1.42% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (3.26)% on a NAV basis. All returns reflect reinvestment of dividends. The portfolio is being managed to achieve a goal of returning $10 per share on 12/31/2010, and is invested in shorter-term issues. This was the primary driver of the Trust’s outperformance as long-term rates rose during the six months. Leverage was less efficient during the period, which detracted from performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BMT

Initial Offering Date

February 20, 1992

Termination Date (on or about)

December 31, 2010

Yield on Closing Market Price as of June 30, 2008 ($10.05)1

3.63%

Tax Equivalent Yield2

5.58%

Current Monthly Distribution per Common Share3

$0.030417

Current Annualized Distribution per Common Share3

$0.365004

Leverage as of June 30, 20084

16%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Auction Market Preferred Shares (“Preferred Shares”) and Tender Option Bond Trusts (“TOBs”)) minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

10.05

 

$

9.85

 

2.03% 

 

$

10.55

 

$

9.85

 

Net Asset Value

 

$

10.31

 

$

10.35

 

(0.39)%

 

$

10.59

 

$

10.29

 

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

 

Portfolio Composition

 

Sector

6/30/08

 

12/31/07

City, County & State

31

%

 

29

%

Education

17

 

 

18

 

Power

17

 

 

14

 

Water & Sewer

16

 

 

16

 

Hospital

8

 

 

7

 

Lease Revenue

6

 

 

7

 

Transportation

4

 

 

7

 

Tax Revenue

1

 

 

2

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

AAA/Aaa

 

36

%

 

100

%

AA/Aa

 

60

 

 

 

A

 

2

 

 

 

Not Rated

 

2

6

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008, the market value of these securities was $2,527,101 representing 1% of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

5

 


Trust Summary as of June 30, 2008

BlackRock Municipal 2018 Term Trust

 

Investment Objective

BlackRock Municipal 2018 Term Trust (BPK) (the “Trust”) seeks to provide monthly income that is exempt from regular federal income tax and to return $15 per share (the initial offering price) to investors on or about December 31, 2018.

 

Performance

For the six months ended June 30, 2008, the Trust returned 2.10% based on market price and (3.04)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (3.00)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s shorter duration bias was a positive contributor to performance as long-term rates rose during the six months. Detracting from the Trust’s relative performance was the asset allocation to lower-rated issues as the market experienced spread widening.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BPK

Initial Offering Date

October 26, 2001

Termination Date (on or about)

December 31, 2018

Yield on Closing Market Price as of June 30, 2008 ($15.10)1

6.00%

Tax Equivalent Yield2

9.23%

Current Monthly Distribution per Common Share3

$0.0755

Current Annualized Distribution per Common Share3

$0.906

Leverage as of June 30, 20084

38%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

15.10

 

$

15.22

 

(0.79)%

$

16.35

 

$

14.83

 

Net Asset Value

 

$

14.19

 

$

15.06

 

(5.78)%

$

15.47

 

$

14.10

 

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

 

Portfolio Composition

 

Sector

6/30/08

 

12/31/07

Hospital

24

%

 

25

%

Industrial & Pollution Control

23

 

 

24

 

City, County & State

17

 

 

18

 

Housing

14

 

 

14

 

Education

6

 

 

6

 

Tax Revenue

5

 

 

5

 

Transportation

5

 

 

4

 

Lease Revenue

2

 

 

3

 

Water & Sewer

2

 

 

 

Power

1

 

 

 

Tobacco

1

 

 

1

 

 

Credit Quality Allocations5

 

Credit Rating

6/30/08

 

12/31/07

AAA/Aaa

15

%

 

27

%

AA/Aa

23

 

 

11

 

A

14

 

 

18

 

BBB/Baa

25

 

 

26

 

BB/Ba

2

 

 

2

 

B

4

 

 

8

 

CCC/Caa

3

 

 

 

Not Rated6

14

 

 

8

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008 and December 31, 2007, the market value of these securities was $6,691,519 representing 2% and $5,534,635 representing 2%, respectively, of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

 

6

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock Municipal 2020 Term Trust

 

Investment Objective

BlackRock Municipal 2020 Term Trust (BKK) (the “Trust”) seeks to provide current income exempt from regular federal income tax and to return $15 per share (the initial public offering price) on or about December 31, 2020.

 

Performance

For the six months ended June 30, 2008, the Trust returned 3.94% based on market price and (3.59)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (3.00)% on a NAV basis. All returns reflect reinvestment of dividends. Detracting from the Trust’s relative performance was the asset allocation to lower-rated issues as the market experienced spread widening. The Trust’s intermediate duration bias was a positive contributor during a period of rising long-term rates.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BKK

Initial Offering Date

September 30, 2003

Termination Date (on or about)

December 31, 2020

Yield on Closing Market Price as of June 30, 2008 ($13.78)1

5.42%

Tax Equivalent Yield2

8.34%

Current Monthly Distribution per Common Share3

$0.06225

Current Annualized Distribution per Common Share3

$0.747

Leverage as of June 30, 20084

39%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

13.78

 

$

13.60

 

1.32% 

$

15.14

 

$

13.25

 

Net Asset Value

 

$

13.90

 

$

14.79

 

(6.02)%

$

15.25

 

$

13.69

 

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

 

Portfolio Composition

 

Sector

6/30/08

 

12/31/07

City, County & State

20

%

 

22

%

Hospitals

19

 

 

17

 

Industrial & Pollution Control

15

 

 

17

 

Tobacco

9

 

 

11

 

Power

8

 

 

7

 

Education

8

 

 

8

 

Housing

7

 

 

7

 

Transportation

6

 

 

5

 

Tax Revenue

6

 

 

6

 

Water & Sewer

1

 

 

 

Lease Revenue

1

 

 

 

 

Credit Quality Allocations5

 

Credit Rating

6/30/08

 

12/31/07

AAA/Aaa

16

%

 

30

%

AA/Aa

19

 

 

10

 

A

15

 

 

12

 

BBB/Baa

27

 

 

29

 

BB/Ba

1

 

 

1

 

B

4

 

 

6

 

CCC/Caa

1

 

 

 

Not Rated6

17

 

 

12

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008 and December 31, 2007, the market value of these securities was $2,865,569 representing 1% and $2,963,570 representing 1%, respectively, of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

7

 


Trust Summary as of June 30, 2008

BlackRock Strategic Municipal Trust

 

Investment Objective

BlackRock Strategic Municipal Trust (BSD) (the “Trust”) seeks to provide high current income exempt from regular federal income tax, consistent with the preservation of capital.

 

Performance

For the six months ended June 30, 2008, the Trust returned (3.75)% based on market price and (4.39)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (3.00)% on a NAV basis. All returns reflect reinvestment of dividends. On the whole, portfolio positioning and credit exposure were the primary detractors from the Trust’s relative performance. Throughout the period, we remained focused on delivering a competitive dividend yield. While we were successful in this effort, the Trust’s exposure to lower-rated holdings proved detrimental as credit spreads widened considerably. In the interest of sustaining the Trust’s competitive yield, we do not anticipate any significant changes in portfolio composition in the near-term.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BSD

Initial Offering Date

August 25,1999

Yield on Closing Market Price as of June 30, 2008 ($13.02)1

5.76%

Tax Equivalent Yield2

8.86%

Current Monthly Distribution per Common Share3

$0.0625

Current Annualized Distribution per Common Share3

$0.750

Leverage as of June 30, 20084

39%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

13.02

 

$

13.96

 

(6.73)%

 

$

15.94

 

$

12.84

 

Net Asset Value

 

$

13.22

 

$

14.27

 

(7.36)%

 

$

14.62

 

$

12.61

 

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

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

23

%

 

22

%

 

Hospital

 

22

 

 

22

 

 

Industrial & Pollution Control

 

11

 

 

16

 

 

Power

 

10

 

 

7

 

 

Housing

 

9

 

 

9

 

 

Education

 

8

 

 

5

 

 

Tax Revenue

 

7

 

 

8

 

 

Transportation

 

7

 

 

7

 

 

Water & Sewer

 

2

 

 

2

 

 

Tobacco

 

1

 

 

2

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

18

%

 

43

%

 

AA/Aa

 

31

 

 

21

 

 

A

 

15

 

 

8

 

 

BBB/Baa

 

9

 

 

15

 

 

BB/Ba

 

10

 

 

3

 

 

B

 

3

 

 

4

 

 

CCC/Caa

 

1

 

 

 

 

Not Rated6

 

13

 

 

6

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008 and December 31, 2007, the market value of these securities was $4,482,503 representing 3% and $4,358,336 representing 3%, respectively, of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

8

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock California Insured Municipal 2008 Term Trust

 

Investment Objective

BlackRock California Insured Municipal 2008 Term Trust (BFC) (the “Trust”) seeks to provide monthly income that is exempt from regular federal and California income taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2008.

 

Performance

For the six months ended June 30, 2008, the Trust returned 1.12% based on market price and 1.26% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (2.38)% on a NAV basis. All returns reflect reinvestment of dividends. The portfolio is being managed to achieve the goal of returning $15 per share on 12/31/2008, and is invested primarily in short-term issues. This resulted in the Trust’s relative outperformance as long-term rates rose during the six months. Low short-term reinvestment rates detracted from performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BFC

Initial Offering Date

September 18,1992

Termination Date (on or about)

December 31, 2008

Yield on Closing Market Price as of June 30, 2008 ($14.97)1

2.20%

Tax Equivalent Yield2

3.38%

Current Monthly Distribution per Common Share3

$0.0275

Current Annualized Distribution per Common Share3

$0.330

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

14.97

 

$

15.09

 

(0.80)%

 

$

15.29

 

$

14.97

 

Net Asset Value

 

$

15.18

 

$

15.28

 

(0.65)%

 

$

15.38

 

$

15.17

 

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

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

20

%

 

24

%

 

U.S. Government Obligations

 

18

 

 

 

 

Power

 

17

 

 

21

 

 

Tax Revenue

 

13

 

 

11

 

 

Education

 

10

 

 

12

 

 

Lease Revenue

 

10

 

 

27

 

 

Transportation

 

6

 

 

 

 

Water & Sewer

 

6

 

 

5

 

 

 

Credit Quality Allocations4

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

30

%

 

100

%

 

AA/Aa

 

58

 

 

 

 

A

 

8

 

 

 

 

Not Rated

 

4

 

 

 

 

 

4

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

9

 


Trust Summary as of June 30, 2008

BlackRock California Municipal 2018 Term Trust

 

Investment Objective

BlackRock California Municipal 2018 Term Trust (BJZ) (the “Trust”) seeks to provide monthly income that is exempt from regular federal and California income taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2018.

 

Performance

For the six months ended June 30, 2008, the Trust returned 0.04% based on market price and (1.23)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (2.42)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s intermediate duration bias was the primary contributor to relative outperformance during a period of rising long-term rates. The allocation to lower-rated issues detracted from performance as the market experienced spread widening.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BJZ

Initial Offering Date

 

October 26, 2001

Termination Date (on or about)

 

December 31, 2018

Yield on Closing Market Price as of June 30, 2008 ($15.04)1

 

4.89%

Tax Equivalent Yield2

 

7.52%

Current Monthly Distribution per Common Share3

 

$0.06125

Current Annualized Distribution per Common Share3

 

$0.735

Leverage as of June 30, 20084

 

38%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

15.04

 

$

15.40

 

(2.34)%

 

$

16.05

 

$

14.68

 

Net Asset Value

 

$

14.29

 

$

14.82

 

(3.58)%

 

$

15.18

 

$

14.04

 

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

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

24

%

 

23

%

 

Transportation

 

18

 

 

19

 

 

Hospital

 

13

 

 

13

 

 

Lease Revenue

 

11

 

 

14

 

 

Education

 

9

 

 

8

 

 

Power

 

7

 

 

5

 

 

Housing

 

7

 

 

7

 

 

Industrial & Pollution Control

 

7

 

 

7

 

 

Water & Sewer

 

2

 

 

2

 

 

Resource Recovery

 

2

 

 

2

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

18

%

 

44

%

 

AA/Aa

 

24

 

 

 

 

A

 

22

 

 

26

 

 

BBB/Baa

 

23

 

 

27

 

 

Not Rated

 

13

 

 

3

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

10

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock Florida Insured Municipal 2008 Term Trust

 

Investment Objective

BlackRock Florida Insured Municipal 2008 Term Trust (BRF) (the “Trust”) seeks to provide monthly income that is exempt from regular federal income tax and Florida intangible personal property taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2008.

 

Performance

For the six months ended June 30, 2008, the Trust returned 0.92% based on market price and 1.46% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (2.38)% on a NAV basis. All returns reflect reinvestment of dividends. The portfolio is being managed to achieve a goal of returning $15 per share on 12/31/2008, and is invested primarily in short-term issues. This resulted in the relative outperformance as long-term rates rose during the six months. Low short-term reinvestment rates on maturing principal detracted from performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BRF

Initial Offering Date

 

September 18, 1992

Termination Date (on or about)

 

December 31, 2008

Yield on Closing Market Price as of June 30, 2008 ($14.72)1

 

0.41%

Tax Equivalent Yield2

 

0.63%

Current Monthly Distribution per Common Share3

 

$0.005

Current Annualized Distribution per Common Share3

 

$0.060

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

14.72

 

$

14.69

 

0.20%

 

$

14.83

 

$

14.49

 

Net Asset Value

 

$

14.99

 

$

14.88

 

0.74%

 

$

15.02

 

$

14.88

 

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

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

Tax Revenue

 

35

%

 

40

%

 

Hospital

 

16

 

 

1

 

 

Power

 

15

 

 

13

 

 

Transportation

 

14

 

 

12

 

 

City, County & State

 

10

 

 

11

 

 

Education

 

8

 

 

14

 

 

Water & Sewer

 

2

 

 

4

 

 

Resource Recovery

 

 

 

5

 

 

 

Credit Quality Allocations4

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

19

%

 

100

%

 

AA/Aa

 

75

 

 

 

 

A

 

6

 

 

 

 

 

4

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

11


Trust Summary as of June 30, 2008

BlackRock Florida Municipal 2020 Term Trust

 

Investment Objective

BlackRock Florida Municipal 2020 Term Trust (BFO) (the “Trust”) seeks to provide current income that is exempt from regular federal income tax and Florida intangible personal property taxes and to return $15.00 per share (the initial public offering price) on or about December 31, 2020.

 

Performance

For the six months ended June 30, 2008, the Trust returned (1.81)% based on market price and (1.23)% based on NAV. For the same period, the closed-end Lipper Florida Municipal Debt Funds category posted an average return of (2.48)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s intermediate duration bias was the primary driver of relative outperformance as long-term rates rose during the six months. Meanwhile, the allocation to lower-rated issues detracted from results as the market experienced spread widening during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BFO

Initial Offering Date

 

September 30, 2003

Termination Date (on or about)

 

December 31, 2020

Yield on Closing Market Price as of June 30, 2008 ($12.40)1

 

4.94%

Tax Equivalent Yield2

 

7.60%

Current Monthly Distribution per Common Share3

 

$0.051

Current Annualized Distribution per Common Share3

 

$0.612

Leverage as of June 30, 20084

 

38%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

12.40

 

$

12.93

 

(4.10)%

$

13.87

 

$

12.21

 

Net Asset Value

 

$

14.20

 

$

14.72

 

(3.53)%

$

15.11

 

$

13.72

 

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

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

22

%

 

22

%

 

Water & Sewer

 

15

 

 

18

 

 

Hospitals

 

13

 

 

12

 

 

Tax Revenue

 

11

 

 

12

 

 

Education

 

10

 

 

10

 

 

Power

 

9

 

 

9

 

 

Industrial & Pollution Control

 

7

 

 

6

 

 

Lease Revenue

 

6

 

 

4

 

 

Housing

 

5

 

 

5

 

 

Transportation

 

2

 

 

2

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

25

%

 

59

%

 

AA/Aa

 

35

 

 

9

 

 

A

 

8

 

 

2

 

 

BBB/Baa

 

10

 

 

9

 

 

BB/Ba

 

2

 

 

2

 

 

CCC/Caa

 

 

 

1

 

 

Not Rated6

 

20

 

 

18

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008 and December 31, 2007, the market value of these securities was $11,804,478 representing 9% and $2,084,840 representing 2%, respectively, of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

12

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock New York Insured Municipal 2008 Term Trust

 

Investment Objective

BlackRock New York Insured Municipal 2008 Term Trust (BLN) (the “Trust”) seeks to provide monthly income that is exempt from regular federal, New York State and New York City income taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2008.

 

Performance

For the six months ended June 30, 2008, the Trust returned 1.21% based on market price and 1.35% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (2.38)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust is being managed to achieve a goal of returning $15 per share on 12/31/2008, and is invested primarily in short-term issues. This resulted in the relative outperformance as long-term rates rose during the six months. Meanwhile, low short-term reinvestment rates for maturing principal detracted from results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BLN

Initial Offering Date

 

September 18, 1992

Termination Date (on or about)

 

December 31, 2008

Yield on Closing Market Price as of June 30, 2008 ($14.98)1

 

2.20%

Tax Equivalent Yield2

 

3.38%

Current Monthly Distribution per Common Share3

 

$0.0275

Current Annualized Distribution per Common Share3

 

$0.330

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

14.98

 

$

15.05

 

(0.47)%

$

15.21

 

$

14.95

 

Net Asset Value

 

$

15.16

 

$

15.21

 

(0.33)%

$

15.28

 

$

15.15

 

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

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

Transportation

 

39

%

 

25

%

 

City, County & State

 

21

 

 

10

 

 

Hospital

 

16

 

 

9

 

 

Power

 

7

 

 

8

 

 

Industrial & Pollution Control

 

5

 

 

 

 

Housing

 

5

 

 

3

 

 

Tax Revenue

 

4

 

 

7

 

 

Lease Revenue

 

2

 

 

4

 

 

Education

 

1

 

 

19

 

 

Water & Sewer

 

 

 

15

 

 

 

Credit Quality Allocations4

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

13

%

 

100

%

 

AA/Aa

 

83

 

 

 

 

A

 

2

 

 

 

 

BBB/Baa

 

2

 

 

 

 

 

4

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

13

 


Trust Summary as of June 30, 2008

BlackRock New York Municipal 2018 Term Trust

 

Investment Objective

BlackRock New York Municipal 2018 Term Trust (BLH) (the “Trust”) seeks to provide monthly income that is exempt from regular federal, New York State and New York City income taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2018.

 

Performance

For the six months ended June 30, 2008, the Trust returned (1.57)% based on market price and (0.47)% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of (1.66)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s intermediate duration bias during a period of rising long-term rates was the primary driver of its relative outperformance. Meanwhile, the allocation to lower-rated issues detracted from results as spreads widened during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BLH

Initial Offering Date

 

October 26, 2001

Termination Date (on or about)

 

December 31, 2018

Yield on Closing Market Price as of June 30, 2008 ($15.52)1

 

5.32%

Tax Equivalent Yield2

 

8.18%

Current Monthly Distribution per Common Share3

 

$0.06875

Current Annualized Distribution per Common Share3

 

$0.825

Leverage as of June 30, 20084

 

36%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

15.52

 

$

16.18

 

(4.08)%

 

$

16.95

 

$

15.03

 

Net Asset Value

 

$

15.50

 

$

15.98

 

(3.00)%

 

$

16.32

 

$

15.40

 

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

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

Education

 

23

%

 

22

%

 

City, County & State

 

13

 

 

11

 

 

Hospital

 

12

 

 

15

 

 

Tobacco

 

11

 

 

11

 

 

Transportation

 

11

 

 

11

 

 

Industrial & Pollution Control

 

7

 

 

7

 

 

Lease Revenue

 

7

 

 

10

 

 

Housing

 

6

 

 

6

 

 

Tax Revenue

 

6

 

 

6

 

 

Power

 

4

 

 

1

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

18

%

 

44

%

 

AA/Aa

 

33

 

 

37

 

 

A

 

29

 

 

5

 

 

BBB/Baa

 

10

 

 

9

 

 

BB/Ba

 

4

 

 

 

 

B

 

 

 

4

 

 

Not Rated

 

6

 

 

1

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

14

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock Pennsylvania Strategic Municipal Trust

 

Investment Objective

BlackRock Pennsylvania Strategic Municipal Trust (BPS) (the “Trust”) seeks to provide monthly income that is exempt from regular federal and Pennsylvania income taxes.

 

Performance

For the six months ended June 30, 2008, the Trust returned (2.44)% based on market price and (2.74)% based on NAV. For the same period, the closed-end Lipper Pennsylvania Municipal Debt Funds category posted an average return of (2.78)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s relatively neutral duration posture benefited performance during a period of municipal bond relative underperformance and rising interest rates. The incremental yield derived from the Trust’s lower-rated issues also positively impacted recent performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on American Stock Exchange

 

BPS

Initial Offering Date

 

August 25, 1999

Yield on Closing Market Price as of June 30, 2008 ($12.89)1

 

4.19%

Tax Equivalent Yield2

 

6.45%

Current Monthly Distribution per Common Share3

 

$0.045

Current Annualized Distribution per Common Share3

 

$0.540

Leverage as of June 30, 20084

 

39%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

12.89

 

$

13.55

 

(4.87)%

 

$

15.85

 

$

12.25

 

Net Asset Value

 

$

13.39

 

$

14.12

 

(5.17)%

 

$

14.55

 

$

12.97

 

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

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

20

%

 

15

%

 

Education

 

17

 

 

18

 

 

Housing

 

17

 

 

16

 

 

Hospital

 

12

 

 

11

 

 

Transportation

 

11

 

 

10

 

 

Water & Sewer

 

10

 

 

16

 

 

Industrial & Pollution Control

 

5

 

 

5

 

 

Lease Revenue

 

4

 

 

4

 

 

Power

 

4

 

 

2

 

 

Tax Revenue

 

 

 

3

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

27

%

 

45

%

 

AA/Aa

 

30

 

 

14

 

 

A

 

22

 

 

21

 

 

BBB/Baa

 

18

 

 

17

 

 

BB/Ba

 

1

 

 

 

 

B

 

 

 

1

 

 

Not Rated

 

2

 

 

2

6

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of December 31, 2007, the market value of these securities was $971,150 representing 2% of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

15

 


The Benefits and Risks of Leveraging

 

The Trusts may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, the Trusts may issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. The interest earned on these investments is paid to Common Shareholders in the form of dividends, and the value of these Portfolios’ holdings is reflected in the per share NAV of the Trusts’ Common Shares. However, in order to benefit Common Shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. At the same time, a period of generally declining interest rates will benefit Common Shareholders. If either of these conditions change, then the risks of leveraging will begin to outweigh the benefits.

To illustrate these concepts, assume a trust’s Common Share capitalization of $100 million and the issuance of Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are approximately 3% and long-term interest rates are approximately 6%, then the yield curve has a strongly positive slope. The trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the trust’s total portfolio of $150 million earns income based on long-term interest rates.

In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the trust’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental yield. However, if short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Shares will be reduced or eliminated completely. At the same time, the market value on the trust’s Common Shares (that is, its price as listed on the New York Stock Exchange or American Stock Exchange) may, as a result, decline. Furthermore, if long-term interest rates rise, the Common Shares’ NAV will reflect the full decline in the price of the portfolio’s investments, since the value of the trust’s Preferred Shares does not fluctuate. In addition to the decline in NAV, the market value of the trust’s Common Shares may also decline.

In addition, the Trusts may from time to time leverage their assets through the use of tender option bond (“TOB”) programs. In a typical TOB program, the Trust transfers one or more municipal bonds to a TOB trust, which issues short-term variable rate securities to third-party investors and a residual interest to the Trust. The cash received by the TOB trust from the issuance of the short-term securities (less transaction expenses) is paid to the Trust, which invests the cash in additional portfolio securities. The distribution rate on the short-term securities is reset periodically (typically every seven days) through a remarketing of the short-term securities. Any income earned on the bonds in the TOB trust, net of expenses incurred by the TOB trust, that is not paid to the holders of the short-term securities is paid to the Trust. In connection with managing the Trusts’ assets, the Trusts’ investment advisor may at any time retrieve the bonds out of the TOB trust typically within seven days. TOB investments generally will provide the Trust with economic benefits in periods of declining short-term interest rates, but expose the Trust to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trust, as described above. Additionally, fluctuations in the market value of municipal securities deposited into the TOB trust may adversely affect the Funds’ NAVs per share. (See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOB trusts.).

Under the Investment Company Act of 1940, the Trusts are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Each Trust also anticipates that its total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets. As of June 30, 2008, the Trusts had leverage from Preferred Shares and TOBs as a percentage of managed assets as follows:

 

 

 

Percent of
Leverage

 

Insured Municipal Term Trust

 

16%

 

Municipal 2018 Term Trust

 

38%

 

Municipal 2020 Term Trust

 

39%

 

Strategic Municipal Trust

 

39%

 

California Municipal 2018 Term Trust

 

38%

 

Florida Municipal 2020 Term Trust

 

38%

 

New York Municipal 2018 Term Trust

 

36%

 

Pennsylvania Strategic Municipal Trust

 

39%

 

 

Swap Agreements

The Trusts may invest in swap agreements, which are over-the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified bond, basket of bonds or index in return for periodic payments based on a fixed or variable interest rate or the change in market value of a different bond, basket of bonds or index. Swap agreements may be used to obtain exposure to a bond or market without owning or taking physical custody of securities. Swap agreements involve the risk that the party with whom each Trust has entered into a swap will default on its obligation to pay the Trust and the risk that the Trust will not be able to meet its obligation to pay the other party to the agreement.

 

 

 

 

 

 

 

 

 

 

 

16

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Insured Municipal 2008 Term Trust (BRM)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama—1.6%

 

 

 

 

 

 

 

Birmingham-Jefferson Civic Center Authority, Alabama, Special Tax Refunding Bonds, Series A, 4.25%, 1/01/09 (a)

 

$

6,555

 

$

6,636,020

 

Arizona—1.0%

 

 

 

 

 

 

 

Chandler, Arizona, GO, CABS, Refunding, 6.50%, 7/01/08 (b)(c)

 

 

4,000

 

 

3,999,720

 

California—7.0%

 

 

 

 

 

 

 

East Bay Municipal Utility District, California, Water System Revenue Refunding Bonds, VRDN, Sub-Series B, 1.23%, 6/01/25 (a)(d)

 

 

14,840

 

 

14,840,000

 

Southern California Public Power Authority, Revenue Refunding Bonds (Power Transmission Project), VRDN, Sub-Series B, 1.28%, 7/01/23 (d)

 

 

13,985

 

 

13,985,000

 

 

 

 

 

 

 

28,825,000

 

Colorado—0.5%

 

 

 

 

 

 

 

El Paso County, Colorado, COP (Detention Facilities Project), Series B, 3.20%, 12/01/08 (e)

 

 

1,000

 

 

1,004,890

 

Thornton, Colorado, COP, 3.25%, 12/01/08 (e)

 

 

1,000

 

 

1,004,340

 

 

 

 

 

 

 

2,009,230

 

Delaware—0.2%

 

 

 

 

 

 

 

Delaware River and Bay Authority Revenue Bonds, 3.25%, 1/01/09 (f)

 

 

650

 

 

653,653

 

District of Columbia—2.6%

 

 

 

 

 

 

 

District of Columbia, GO, VRDN, Series D-1, 1.52%, 6/01/26 (a)(d)

 

 

10,675

 

 

10,675,000

 

Florida—2.7%

 

 

 

 

 

 

 

Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), VRDN:

 

 

 

 

 

 

 

Series A-1, 3.50%, 10/01/41 (a)(d)

 

 

1,500

 

 

1,500,000

 

Series A-2, 1.30%, 10/01/41 (a)(d)

 

 

800

 

 

800,000

 

Palm Beach County, Florida, School Board, COP, VRDN, Series B, 1.51%, 8/01/27 (a)(d)

 

 

5,400

 

 

5,400,000

 

Palm Beach, Florida, Revenue Refunding Bonds (Beach Restoration Project), Series A, 5%, 1/01/09 (a)

 

 

1,300

 

 

1,320,930

 

Tampa, Florida, Water and Sewer Revenue Refunding Bonds, 5.50%, 10/01/08 (a)

 

 

2,080

 

 

2,099,344

 

 

 

 

 

 

 

11,120,274

 

Georgia—4.9%

 

 

 

 

 

 

 

Monroe County, Georgia, Development Authority, PCR, Refunding (Georgia Power Company—Scherer Plant Project), 4.20%, 1/01/12 (e)

 

 

20,000

 

 

20,153,800

 

Hawaii—1.2%

 

 

 

 

 

 

 

Honolulu, Hawaii, City and County GO, Refunding, Series E, 4%, 7/01/08 (b)

 

 

4,750

 

 

4,750,285

 

Illinois—4.6%

 

 

 

 

 

 

 

Cook County, Illinois, School District Number 025 (Arlington Heights), GO, Refunding, 4.50%, 12/01/08 (a)

 

 

2,000

 

 

2,022,760

 

               

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois—(concluded)

 

 

 

 

 

 

 

Du Page County, Illinois, Forest Preserve District, GO, 5.90%, 11/01/08 (c)

 

$

8,985

 

$

8,915,456

 

Illinois State, GO, First Series, 3.50%, 7/01/08 (f)

 

 

6,750

 

 

6,750,337

 

Kane and Du Page Counties, Illinois, Community Unit School District 303 (Saint Charles), GO, Series A, 3.75%, 1/01/09 (a)

 

 

1,455

 

 

1,469,361

 

 

 

 

 

 

 

19,157,914

 

Kentucky—0.9%

 

 

 

 

 

 

 

Owensboro, Kentucky, Electric, Light and Power Revenue Bonds, Series B, 6.75%, 1/01/09 (c)(e)

 

 

3,890

 

 

3,843,048

 

Michigan—0.9%

 

 

 

 

 

 

 

Michigan State Trunk Line Revenue Bonds, Series A, 4.125%, 11/01/08 (a)

 

 

3,000

 

 

3,023,580

 

Wyandotte, Michigan, Electric Revenue Refunding Bonds, 6.25%, 10/01/08 (f)

 

 

765

 

 

772,443

 

 

 

 

 

 

 

3,796,023

 

New Jersey—0.7%

 

 

 

 

 

 

 

Monmouth County, New Jersey, Improvement Authority, Governmental Loan Revenue Refunding Bonds, 5%, 12/01/08 (a)

 

 

1,000

 

 

1,013,760

 

New Jersey State Transportation Trust Fund Authority, Transportation System Revenue Refunding Bonds, Series C, 5.25%, 12/15/08 (e)

 

 

1,750

 

 

1,776,127

 

 

 

 

 

 

 

2,789,887

 

New York—2.9%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Revenue Refunding Bonds, VRDN, Series B, 1.45%, 11/01/22 (a)(d)

 

 

6,000

 

 

6,000,000

 

New York State Dormitory Authority, Mental Health Services Revenue Bonds, VRDN, Sub-Series D-2B, 1.25%, 2/15/31 (a)(d)

 

 

2,000

 

 

2,000,000

 

Port Authority of New York and New Jersey, Consolidated Revenue Refunding Bonds, 129th Series, 2.875%, 11/01/08 (a)

 

 

4,000

 

 

4,015,720

 

 

 

 

 

 

 

12,015,720

 

Oregon—1.0%

 

 

 

 

 

 

 

Lane County, Oregon, School District Number 4J (Eugene), GO, Advance Refunding, 3%, 1/01/09 (a)

 

 

1,285

 

 

1,293,006

 

Oregon State Department of Administrative Services, COP, Refunding, Series A, 5%, 11/01/08 (a)

 

 

2,905

 

 

2,936,316

 

 

 

 

 

 

 

4,229,322

 

Pennsylvania—6.2%

 

 

 

 

 

 

 

Dauphin County, Pennsylvania, General Authority, Hospital Revenue Refunding Bonds (Hapsco Group—Western Pennsylvania Hospital Project), Series B, 6.25%, 7/01/08 (f)(g)

 

 

965

 

 

965,116

 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names of many of the securities have been abbreviated according to the list on the right.

 

AMT

 

Alternative Minimum Tax (subject to)

CABS

 

Capital Appreciation Bonds

COP

 

Certificates of Participation

EDA

 

Economic Development Authority

EDR

 

Economic Development Revenue Bonds

GAN

 

Grant Anticipation Notes

GO

 

General Obligation Bonds

HDA

 

Housing Development Authority

HFA

 

Housing Finance Agency

IDA

 

Industrial Development Authority

IDB

 

Industrial Development Board

M/F

 

Multi-Family

PCR

 

Pollution Control Revenue Bonds

S/F

 

Single-Family

TFABS

 

Tobacco Flexible Amortization Bonds

VRDN

 

Variable Rate Demand Notes

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

17


Schedule of Investments (concluded)

BlackRock Insured Municipal 2008 Term Trust (BRM)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

 

Value

 

Pennsylvania—(concluded)

 

 

 

 

 

 

Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania Power and Light Utilities Corporation Project), 3.125%, 11/01/08 (e)

$

16,250

 

$

16,284,288

 

Pennsylvania State Department of General Services, COP, Refunding, 4.50%, 11/01/08 (a)

 

2,120

 

 

2,138,020

 

Philadelphia, Pennsylvania, GO, Series 2001, 4.10%, 9/15/08 (a)

 

3,175

 

 

3,189,351

 

Pittsburgh, Pennsylvania, Public Parking Authority, Parking Revenue Refunding Bonds, 3.25%, 12/01/08 (e)

 

3,125

 

 

3,136,875

 

 

 

 

 

 

25,713,650

 

Texas—9.9%

 

 

 

 

 

 

Austin, Texas, Combined Utility System, Revenue Refunding Bonds:

 

 

 

 

 

 

6.625%, 11/15/08 (e)

 

5,000

 

 

5,079,100

 

CABS, Series A, 6.85%, 11/15/08 (c)(f)

 

11,515

 

 

11,412,286

 

Austin, Texas, GO, 3.50%, 9/01/08 (a)

 

5,380

 

 

5,395,710

 

North Texas Tollway Authority, Dallas North Tollway System, Revenue Refunding Bonds, Series C, 5%, 1/01/09 (a)(g)

 

1,500

 

 

1,524,150

 

Texas Municipal Power Agency, Revenue Refunding Bonds (c)(e):

 

 

 

 

 

 

6.798%, 9/01/08 (g)

 

1,115

 

 

1,110,785

 

6.80%, 9/01/08

 

13,885

 

 

13,828,349

 

Ysleta, Texas, Independent School District, GO, CABS, Refunding, 6.70%, 8/15/08 (c)

 

2,275

 

 

2,268,425

 

 

 

 

 

 

40,618,805

 

Washington—6.4%

 

 

 

 

 

 

Clark County, Washington, Public Utility District Number 001, Electric Revenue Refunding Bonds, 5%, 1/01/09 (f)

 

1,250

 

 

1,267,912

 

King County, Washington, GO, Series D, 5.55%, 12/01/08 (f)

 

12,850

 

 

13,039,795

 

King County, Washington, Public Transportation Sales Tax, GO, Refunding, 3.50%, 12/01/08 (a)

 

3,060

 

 

3,082,093

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Washington—(concluded)

 

 

 

 

 

 

 

Seattle, Washington, GO, Series F, 5.125%, 12/15/08

 

$

250

 

$

253,868

 

Seattle, Washington, Limited Tax, GO, Refunding, 4%, 7/01/08 (a)(h)

 

 

5,710

 

 

5,710,343

 

Washington State Health Care Facilities Authority Revenue Bonds (Catholic Health Initiatives), Series A, 5.30%,
12/01/08 (f)

 

 

1,010

 

 

1,023,100

 

Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project Number 3), CABS, Series A, 6.49%, 7/01/08 (c)(f)

 

 

2,000

 

 

1,999,860

 

 

 

 

 

 

 

26,376,971

 

Total Municipal Bonds (Cost—$225,988,201)—55.2%

 

 

 

 

 

227,364,322

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

U.S. Government Obligations (i)

 

 

 

 

 

 

 

Fannie Mae Discount Notes

 

 

 

 

 

 

 

3.04%, 10/20/08

 

 

57,835

 

 

57,300,026

 

3.05%, 11/03/08

 

 

41,500

 

 

41,067,708

 

Freddie Mac Discount Notes, 3.20%, 10/27/08

 

 

66,697

 

 

66,006,167

 

U.S. Treasury Notes, 4.875%, 10/31/08

 

 

19,364

 

 

19,547,048

 

Total Short-Term Securities (Cost—$183,912,059)—44.6%

 

 

 

 

 

183,920,949

 

Total Investments (Cost—$409,900,260*)—99.8%

 

 

 

 

 

411,285,271

 

Other Assets Less Liabilities—0.2%

 

 

 

 

 

771,169

 

Net Assets Applicable to Common Stock—100.0%

 

 

 

 

$

412,056,440

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

410,191,472

 

Gross unrealized appreciation

 

$

1,098,216

 

Gross unrealized depreciation

 

 

(4,417

)

Net unrealized appreciation

 

$

1,093,799

 

(a)

FSA Insured.

(b)

FGIC Insured.

(c)

Represents a zero-coupon bond. Rate shown reflects the effective yield at time of purchase.

(d)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(e)

AMBAC Insured.

(f)

MBIA Insured.

(g)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(h)

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

(i)

The interest rates shown reflect the discount rates at the time of purchase.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

Investments in
Securities

 

Level 1

 

 

 

Level 2

 

$

411,285,271

 

Level 3

 

 

 

Total

 

$

411,285,271

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

18

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Insured Municipal Term Trust (BMT)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama—0.9%

 

 

 

 

 

 

 

Alabama State, Federal Highway Authority Revenue Bonds, GAN, Series A, 4.50%, 3/01/11 (a)

 

$

1,410

 

$

1,449,381

 

Birmingham-Jefferson Civic Center Authority, Alabama, Special Tax Refunding Bonds, Series A, 4.375%, 1/01/11 (b)

 

 

1,000

 

 

1,031,450

 

 

 

 

 

 

 

2,480,831

 

Alaska—6.4%

 

 

 

 

 

 

 

Anchorage, Alaska, GO, Refunding, Series B:

 

 

 

 

 

 

 

4.625%, 7/01/10 (c)

 

 

6,000

 

 

6,198,780

 

4.125%, 7/01/11 (a)

 

 

9,295

 

 

9,541,968

 

University of Alaska, Revenue Refunding Bonds, Series K, 3.75%, 10/01/10 (c)

 

 

1,260

 

 

1,274,490

 

 

 

 

 

 

 

17,015,238

 

Arizona—0.4%

 

 

 

 

 

 

 

Mesa, Arizona, GO, Refunding, Series A, 3.75%, 7/01/10 (c)

 

 

1,030

 

 

1,042,102

 

Arkansas—0.2%

 

 

 

 

 

 

 

Little Rock, Arkansas, Capital Improvement, GO, 4%, 4/01/11 (b)

 

 

500

 

 

511,900

 

California—5.7%

 

 

 

 

 

 

 

California State Department of Water Resources, Power Supply Revenue Bonds, Series A:

 

 

 

 

 

 

 

3.60%, 5/01/10 (d)

 

 

5,000

 

 

5,061,450

 

3.70%, 5/01/11 (a)

 

 

3,500

 

 

3,540,320

 

California State, GO, 6.80%, 11/01/10 (c)

 

 

145

 

 

147,010

 

Contra Costa, California, Transportation Authority, Sales Tax Revenue Bonds, Series A, 6.50%, 3/01/09 (c)(e)

 

 

3,145

 

 

3,226,078

 

Los Angeles County, California, Capital Asset Leasing Corporation, Leasehold Revenue Refunding Bonds, 6.05%, 12/01/10 (d)

 

 

3,065

 

 

3,244,118

 

 

 

 

 

 

 

15,218,976

 

Colorado—1.2%

 

 

 

 

 

 

 

Weld County, Colorado, Greeley School District Number 006 (Greeley), GO, Refunding, 3.75%, 12/01/10 (b)

 

 

3,245

 

 

3,315,060

 

Delaware—0.4%

 

 

 

 

 

 

 

Delaware River and Bay Authority Revenue Bonds, 3.75%, 1/01/11 (a)

 

 

1,015

 

 

1,023,942

 

District of Columbia—4.0%

 

 

 

 

 

 

 

District of Columbia, GO, Refunding, Series B, 5.50%, 6/01/11 (b)

 

 

10,000

 

 

10,610,100

 

Florida—1.4%

 

 

 

 

 

 

 

Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), VRDN (b)(f):

 

 

 

 

 

 

 

Series A-1, 3.50%, 10/01/41

 

 

1,000

 

 

1,000,000

 

Series A-2, 1.50%, 10/01/41

 

 

400

 

 

400,000

 

Tampa, Florida, Water and Sewer Revenue Refunding Bonds, 5.50%, 10/01/10 (b)

 

 

2,320

 

 

2,454,421

 

 

 

 

 

 

 

3,854,421

 

Georgia—0.1%

 

 

 

 

 

 

 

Atlanta, Georgia, Water and Wastewater Revenue Bonds, VRDN, Series C, 1.50%, 11/01/41 (b)(f)

 

 

200

 

 

200,000

 

Hawaii—0.4%

 

 

 

 

 

 

 

University of Hawaii, University System Revenue Bonds, Series A, 3.875%, 7/15/10 (c)

 

 

1,000

 

 

1,012,530

 

Illinois—15.8%

 

 

 

 

 

 

 

Chicago, Illinois, GO, Refunding, Series A:

 

 

 

 

 

 

 

4.375%, 1/01/11 (d)

 

 

4,000

 

 

4,111,200

 

5%, 1/01/11 (a)

 

 

1,790

 

 

1,866,469

 

Chicago, Illinois, Park District, GO, Refunding, Series A (c)(e):

 

 

 

 

 

 

 

3.50%, 1/01/10

 

 

3,120

 

 

3,158,345

 

4%, 1/01/11

 

 

3,695

 

 

3,789,740

 

Du Page County, Illinois, Forest Preserve District, GO (g):

 

 

 

 

 

 

 

6%, 11/01/10

 

 

5,000

 

 

4,651,450

 

6.05%, 11/01/11

 

 

11,965

 

 

10,646,696

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois—(concluded)

 

 

 

 

 

 

 

Du Page and Will Counties, Illinois (c):

 

 

 

 

 

 

 

Community School District Number 204 (Indian Prairie), GO, 4.25%, 12/30/10 (e)

 

$

1,750

 

$

1,810,042

 

Community School District Number 205 (Elmhurst), GO, 4.50%, 1/01/11 (e)

 

 

315

 

 

326,850

 

Community School District Number 205 (Elmhurst), GO, 4.50%, 1/01/11

 

 

685

 

 

699,467

 

Illinois State, GO, 1st Series:

 

 

 

 

 

 

 

4.50%, 2/01/11 (c)

 

 

1,500

 

 

1,547,610

 

5.25%, 2/01/11 (c)

 

 

4,000

 

 

4,200,840

 

4.50%, 4/01/11 (b)

 

 

2,000

 

 

2,073,780

 

Kane and Du Page Counties, Illinois, Community Unit School District 303 (Saint Charles), GO, Series A, 4%, 1/01/11 (b)

 

 

2,265

 

 

2,315,917

 

Orland Park, Illinois, GO, Series A, 3.50%, 12/01/10 (c)

 

 

1,025

 

 

1,037,813

 

 

 

 

 

 

 

42,236,219

 

Indiana—4.0%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series A, 4.50%, 1/01/11 (d)

 

 

2,635

 

 

2,690,019

 

Indianapolis, Indiana, Local Public Improvement Bond Bank Revenue Bonds (Waterworks Project), Series A (a):

 

 

 

 

 

 

 

4.25%, 7/01/10

 

 

2,085

 

 

2,141,837

 

4.375%, 1/01/11

 

 

2,815

 

 

2,897,367

 

4.375%, 7/01/11

 

 

2,950

 

 

3,047,645

 

 

 

 

 

 

 

10,776,868

 

Kansas—0.8%

 

 

 

 

 

 

 

Kansas State Development Finance Authority, Public Water Supply, Revolving Loan Fund Revenue Bonds, Series 2 (d):

 

 

 

 

 

 

 

4.125%, 4/01/10

 

 

1,025

 

 

1,048,565

 

4.25%, 4/01/11

 

 

1,000

 

 

1,028,480

 

 

 

 

 

 

 

2,077,045

 

Kentucky—3.8%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority, Health System Revenue Refunding Bonds (Norton Healthcare, Inc.), Series B, 5.429%, 10/01/10 (a)(g)

 

 

10,890

 

 

10,073,468

 

Louisiana—1.9%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority, Revenue Refunding Bonds (Ochsner Clinic Foundation Project), Series A, 4%, 5/15/11 (a)(e)

 

 

5,000

 

 

5,122,050

 

Michigan—2.4%

 

 

 

 

 

 

 

Detroit, Michigan, GO (a):

 

 

 

 

 

 

 

4%, 4/01/10

 

 

1,580

 

 

1,594,726

 

4%, 4/01/11

 

 

1,955

 

 

1,967,473

 

Wyandotte, Michigan, City School District, School Building and Site, GO, Refunding, 4%, 5/01/11 (b)

 

 

2,810

 

 

2,878,058

 

 

 

 

 

 

 

6,440,257

 

Minnesota—1.7%

 

 

 

 

 

 

 

Hopkins, Minnesota, Independent School District Number 270, GO, Refunding, Series B, 4%, 2/01/11 (b)

 

 

2,800

 

 

2,867,928

 

Southern Minnesota Municipal Power Agency, Power Supply System, Revenue Refunding Bonds, Series B, 5.75%,
1/01/11 (e)

 

 

1,680

 

 

1,730,148

 

 

 

 

 

 

 

4,598,076

 

New Jersey—0.4%

 

 

 

 

 

 

 

Monmouth County, New Jersey, Improvement Authority, Governmental Loan Revenue Refunding Bonds, 3.375%,
12/01/10 (b)

 

 

1,000

 

 

1,013,700

 

New Mexico—2.8%

 

 

 

 

 

 

 

Las Cruces, New Mexico, School District Number 002, GO, 5.25%, 8/01/09 (b)(h)

 

 

1,750

 

 

1,810,620

 

New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series A (a):

 

 

 

 

 

 

 

4.20%, 6/01/10

 

 

1,015

 

 

1,041,278

 

3.40%, 6/01/11

 

 

1,276

 

 

1,283,745

 

4.30%, 6/01/11

 

 

1,010

 

 

1,041,280

 

 

 See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

19

 


Schedule of Investments (continued)

BlackRock Insured Municipal Term Trust (BMT)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Mexico—(concluded)

 

 

 

 

 

 

 

New Mexico State Highway Commission, Tax Revenue Refunding Bonds, Subordinate Lien, Series B, 4.75%, 6/15/11 (d)(e)

 

$

2,230

 

$

2,332,245

 

 

 

 

 

 

 

7,509,168

 

New York—5.5%

 

 

 

 

 

 

 

Long Island Power Authority, New York, Electric System Revenue Refunding Bonds, Series A, 5.50%, 12/01/10 (d)

 

 

8,950

 

 

9,419,338

 

New York State Thruway Authority, State Personal Income Tax, Transportation Revenue Bonds, Series A, 5%, 3/15/11 (b)

 

 

5,000

 

 

5,251,400

 

 

 

 

 

 

 

14,670,738

 

Ohio—0.8%

 

 

 

 

 

 

 

Akron, Ohio, GO, Refunding, 4%, 12/01/10 (a)

 

 

1,000

 

 

1,025,740

 

University of Cincinnati, Ohio, General Receipts Revenue Bonds, 3.50%, 6/01/09 (d)

 

 

1,015

 

 

1,025,079

 

 

 

 

 

 

 

2,050,819

 

Oregon—3.7%

 

 

 

 

 

 

 

Lane County, Oregon, School District Number 4J (Eugene), GO, Advance Refunding, 3.75%, 1/01/11 (b)

 

 

1,995

 

 

2,028,396

 

Washington and Clackamas Counties, Oregon, School District Number 23J (Tigard-Tualatin), GO (a):

 

 

 

 

 

 

 

4%, 6/15/10

 

 

3,820

 

 

3,905,912

 

4%, 6/15/11

 

 

3,720

 

 

3,804,890

 

 

 

 

 

 

 

9,739,198

 

Pennsylvania—4.3%

 

 

 

 

 

 

 

Dauphin County, Pennsylvania, General Authority, Hospital Revenue Refunding Bonds (Hapsco Group—Western Pennsylvania Hospital Project), Series B, 6.25%, 7/01/08 (a)(e)

 

 

965

 

 

965,116

 

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (UPMC Health System), Series A, 5.25%, 8/01/10 (b)

 

 

7,500

 

 

7,755,750

 

Pennsylvania State Public School Building Authority, School Revenue Bonds (York School District Project), 4.75%, 5/01/11 (b)

 

 

1,075

 

 

1,117,420

 

Philadelphia, Pennsylvania, Water and Wastewater Revenue Refunding Bonds, VRDN, 1.52%, 6/15/23 (b)(f)

 

 

300

 

 

300,000

 

Wilson, Pennsylvania, School District, GO, Refunding, 2nd Series, 4%, 5/15/10 (b)

 

 

1,250

 

 

1,279,163

 

 

 

 

 

 

 

11,417,449

 

Rhode Island—2.0%

 

 

 

 

 

 

 

Rhode Island Clean Water Finance Agency, Water PCR, 6.70%, 10/01/10 (a)

 

 

235

 

 

237,388

 

Rhode Island State and Providence Plantations, GO, Refunding (Consolidated Capital Development Loan), Series B, 4.20%, 6/01/10 (c)

 

 

5,000

 

 

5,141,750

 

 

 

 

 

 

 

5,379,138

 

Tennessee—0.8%

 

 

 

 

 

 

 

Clarksville, Tennessee, Water, Sewer and Gas Revenue Refunding Bonds (b):

 

 

 

 

 

 

 

4.45%, 2/01/10

 

 

1,005

 

 

1,031,994

 

4.65%, 2/01/11

 

 

1,100

 

 

1,141,756

 

 

 

 

 

 

 

2,173,750

 

Texas—15.0%

 

 

 

 

 

 

 

Bexar, Texas, Metropolitan Water District, Waterworks System Revenue Refunding Bonds (b):

 

 

 

 

 

 

 

3.70%, 5/01/10 (e)

 

 

315

 

 

320,349

 

3.70%, 5/01/10

 

 

770

 

 

783,182

 

3.80%, 5/01/11

 

 

775

 

 

789,175

 

3.80%, 5/01/11 (e)

 

 

315

 

 

321,020

 

Dallas, Texas, Area Rapid Transit, Sales Tax Revenue Refunding Bonds, Senior Lien, 4.30%, 12/01/10 (d)

 

 

2,000

 

 

2,063,980

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas—(concluded)

 

 

 

 

 

 

 

Harris County, Texas, GO, CABS, Refunding, Sub-Series B (c)(g):

 

 

 

 

 

 

 

6.866%, 8/15/08 (e)

 

$

330

 

$

329,079

 

6.866%, 8/15/08

 

 

2,255

 

 

2,247,716

 

Harris County, Texas, Tax Road, GO, Refunding, Series A, 5%, 10/01/10 (b)

 

 

1,500

 

 

1,570,155

 

Houston, Texas, Area Water Corporation, Contract Revenue Bonds (Northeast Water Purification Project), 4.50%, 3/01/11 (c)(e)

 

 

2,490

 

 

2,527,101

 

Houston, Texas, GO, Refunding (a):

 

 

 

 

 

 

 

Series A, 5%, 3/01/11

 

 

5,000

 

 

5,232,200

 

Series A-1, 5%, 3/01/11

 

 

2,000

 

 

2,092,880

 

Houston, Texas, Water and Sewer System, Revenue Refunding Bonds, Junior Lien, Series C, 6.66%, 12/01/10 (d)(g)

 

 

10,440

 

 

9,662,846

 

Katy, Texas, Independent School District, GO, CABS, Refunding, Series A, 4.87%, 2/15/11 (g)

 

 

5,550

 

 

5,072,700

 

Texas Municipal Power Agency, Revenue Refunding Bonds, 5.50%, 9/01/10 (a)

 

 

4,000

 

 

4,199,480

 

Texas Tech University Financing System, Revenue Refunding Bonds, 9th Series, 5%, 2/15/11 (d)

 

 

1,250

 

 

1,305,688

 

University of Houston, Texas, University Revenue Bonds, Series A, 4%, 2/15/10 (b)

 

 

1,500

 

 

1,530,885

 

 

 

 

 

 

 

40,048,436

 

Utah—2.4%

 

 

 

 

 

 

 

Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds, Series A, 5.25%, 7/01/11 (a)

 

 

3,470

 

 

3,584,094

 

Salt Lake County, Utah, Water Conservancy District, Revenue Refunding Bonds, CABS, Series A, 9.066%, 10/01/10 (d)(g)

 

 

3,175

 

 

2,953,893

 

 

 

 

 

 

 

6,537,987

 

Washington—15.9%

 

 

 

 

 

 

 

Benton County, Washington, School District Number 017 (Kennewick), GO, Refunding, 4.50%, 12/01/10 (b)

 

 

7,345

 

 

7,629,766

 

Chelan County, Washington, School District Number 246 (Wenatchee), GO, 4.50%, 12/01/10 (b)

 

 

1,000

 

 

1,038,770

 

Clark County, Washington, Public Utility District Number 001, Electric Revenue Refunding Bonds, 4.50%, 1/01/11 (d)

 

 

3,000

 

 

3,074,190

 

Clark County, Washington, School District Number 114 (Evergreen), GO, 4.125%, 12/01/10 (b)

 

 

2,040

 

 

2,101,322

 

Snohomish County, Washington, Public Utility District Number 001, Generation System Revenue Refunding Bonds, VRDN (b)(f):

 

 

 

 

 

 

 

Series A, 1.52%, 12/01/17

 

 

3,720

 

 

3,720,000

 

Series A-2, 1.52%, 12/01/19

 

 

2,785

 

 

2,785,000

 

Tacoma, Washington, GO, 4.625%, 12/01/10 (c)

 

 

1,010

 

 

1,043,280

 

Washington State, GO, Series A, 5.50%, 7/01/09 (a)(h)

 

 

5,000

 

 

5,184,550

 

Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project Number 2), Series A (a)(g):

 

 

 

 

 

 

 

6.44%, 7/01/10

 

 

3,745

 

 

3,521,236

 

6.44%, 7/01/10 (e)

 

 

9,160

 

 

8,627,987

 

Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project Number 3), CABS, Series A, 4.61%, 7/01/10 (a)(g)

 

 

1,300

 

 

1,222,572

 

Whatcom County, Washington, School District Number 503 (Blaine), GO, Refunding, 4.50%, 12/01/10 (b)

 

 

2,280

 

 

2,368,396

 

 

 

 

 

 

 

42,317,069

 

West Virginia—3.6%

 

 

 

 

 

 

 

West Virginia EDA, Lease Revenue Bonds (Correctional, Juvenile and Public Safety Facilities), Series A (a):

 

 

 

 

 

 

 

4.50%, 6/01/10

 

 

3,705

 

 

3,804,479

 

4.50%, 6/01/11

 

 

4,420

 

 

4,551,804

 

West Virginia School Building Authority, Capital Improvement Revenue Refunding Bonds, 4%, 7/01/11 (d)

 

 

1,170

 

 

1,188,041

 

 

 

 

 

 

 

9,544,324

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

20

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments (concluded)

BlackRock Insured Municipal Term Trust (BMT)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Wisconsin—5.9%

 

 

 

 

 

 

 

Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, 4.375%, 1/01/11 (c)(e)

 

$

1,045

 

$

1,081,188

 

Wisconsin State, Clean Water Revenue Refunding Bonds, Series 2 (a):

 

 

 

 

 

 

 

4%, 6/01/10

 

 

4,640

 

 

4,742,915

 

4%, 6/01/11

 

 

9,850

 

 

10,073,300

 

 

 

 

 

 

 

15,897,403

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Wyoming—2.2%

 

 

 

 

 

 

 

Albany County, Wyoming, Improvements Statutory Trust, COP (a):

 

 

 

 

 

 

 

4%, 1/15/10

 

$

1,325

 

$

1,344,504

 

4%, 7/15/10

 

 

1,450

 

 

1,476,042

 

4%, 1/15/11

 

 

1,480

 

 

1,501,327

 

4%, 7/15/11

 

 

1,510

 

 

1,533,858

 

 

 

 

 

 

 

5,855,731

 

Total Investments (Cost—$301,378,745*)—116.8%

 

 

 

 

 

311,763,993

 

Other Assets Less Liabilities—1.9%

 

 

 

 

 

5,080,845

 

Preferred Shares at Redemption Value—(18.7)%

 

 

 

 

 

(50,025,604

)

Net Assets Applicable to Common Stock—100.0%

 

 

 

 

$

266,819,234

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

301,376,448

 

Gross unrealized appreciation

 

$

10,391,362

 

Gross unrealized depreciation

 

 

(3,817

)

Net unrealized appreciation

 

$

10,387,545

 

(a)

MBIA Insured.

(b)

FSA Insured.

(c)

FGIC Insured.

(d)

AMBAC Insured.

(e)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(f)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(g)

Represents a zero coupon bond. Rate shown reflects the effective yield at the time of purchase.

(h)

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

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

Investments in
Securities

 

Level 1

 

 

 

Level 2

 

$

311,763,993

 

Level 3

 

 

 

Total

 

$

311,763,993

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

21

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Municipal 2018 Term Trust (BPK)

 

(Percentages shown are based on Net Assets)

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

Alabama—3.0%

 

 

 

 

 

 

 

Courtland, Alabama, IDB, Solid Waste Disposal Revenue Refunding Bonds (International Paper Company Project), Series A, 4.75%, 5/01/17

 

$

1,000

 

$

922,910

 

Huntsville, Alabama, Health Care Authority, Revenue Refunding Bonds, GO, Series A, 5.625%, 6/01/22

 

 

5,845

 

 

5,941,209

 

 

 

 

 

 

 

6,864,119

 

Arizona—0.4%

 

 

 

 

 

 

 

Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5.25%, 12/01/20

 

 

1,000

 

 

974,330

 

California—7.2%

 

 

 

 

 

 

 

Agua Caliente Band of Cahuilla Indians, California, Casino Revenue Bonds, 5.60%, 7/01/13

 

 

1,750

 

 

1,725,080

 

California Pollution Control Financing Authority, Solid Waste Disposal:

 

 

 

 

 

 

 

Revenue Bonds (Waste Management Inc. Project), AMT, Series C, 5.125%, 11/01/23

 

 

6,500

 

 

5,844,020

 

Revenue Refunding Bonds (Republic Services Inc. Project), AMT, Series C, 5.25%, 6/01/23

 

 

5,000

 

 

4,671,400

 

Clovis, California, Unified School District, Capital Appreciation, GO (Election of 2004), Series A, 5.12%,
8/01/21 (a)(b)

 

 

5,425

 

 

2,778,848

 

Lincoln, California, Special Tax Bonds (Community Facilities District Number 2003-1), 5.90%, 9/01/13 (j)

 

 

1,100

 

 

1,242,351

 

 

 

 

 

 

 

16,261,699

 

Colorado—4.3%

 

 

 

 

 

 

 

Colorado HFA, Solid Waste Disposal Revenue Bonds, (Waste Management, Inc.), AMT, 5.70%, 7/01/18

 

 

5,000

 

 

4,881,050

 

Park Creek Metropolitan District, Colorado, Senior Limited Tax Supported Revenue Refunding Bonds, 5.25%, 12/01/20

 

 

5,010

 

 

4,915,762

 

 

 

 

 

 

 

9,796,812

 

Connecticut—1.6%

 

 

 

 

 

 

 

Mashantucket Western Pequot Tribe, Connecticut, Special Revenue Refunding Bonds, Sub-Series B, 5.75%, 9/01/18 (c)

 

 

3,750

 

 

3,656,813

 

Florida—7.7%

 

 

 

 

 

 

 

Broward County, Florida, School Board, COP, Series A, 5.25%, 7/01/22 (d)

 

 

1,250

 

 

1,294,275

 

CFM Community Development District, Florida, Capital Improvement Revenue Bonds, Series B, 5.875%, 5/01/14

 

 

1,945

 

 

1,749,955

 

Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Mount Sinai Medical Center of Florida), 6.75%, 11/15/21

 

 

4,515

 

 

4,612,795

 

Pine Island Community Development District, Florida, Utilities System Revenue Bonds, 5.30%, 11/01/10

 

 

900

 

 

867,834

 

Stevens Plantation Community Development District, Florida, Special Assessment Revenue Bonds, Series B, 6.375%, 5/01/13

 

 

2,320

 

 

2,261,838

 

Village Center Community Development District, Florida, Recreational Revenue Bonds, Sub-Series B, 5.875%, 1/01/15

 

 

5,410

 

 

5,449,168

 

Westchester Community Development District Number 1, Florida, Special Assessment Bonds (Community Infrastructure), 6%, 5/01/23

 

 

1,335

 

 

1,186,908

 

 

 

 

 

 

 

17,422,773

 

Illinois—26.6%

 

 

 

 

 

 

 

Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds, Class A, 8%, 6/15/23 (c)

 

 

1,825

 

 

1,687,961

 

Chicago, Illinois, O’Hare International Airport, General Airport Revenue Bonds, Third Lien, Series A (e):

 

 

 

 

 

 

 

5%, 1/01/19

 

 

5,000

 

 

5,093,900

 

5%, 1/01/20

 

 

8,000

 

 

8,099,840

 

Chicago, Illinois, O’Hare International Airport, General Airport Revenue Refunding Bonds, Third Lien, AMT, Series A, 5.75%, 1/01/18 (f)

 

 

5,000

 

 

5,048,800

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

Illinois—(concluded)

 

 

 

 

 

 

 

Illinois Development Finance Authority, Hospital Revenue Bonds (Adventist Health System/Sunbelt Obligated Group), 5.50%, 11/15/09 (j)

 

$

12,500

 

$

13,146,000

 

Illinois Educational Facilities Authority, Student Housing Revenue Bonds (Education Advancement Fund—University Center Project), 6%, 5/01/12 (j)

 

 

5,980

 

 

6,589,960

 

Illinois Health Facilities Authority, Revenue Refunding Bonds (Elmhurst Memorial Healthcare), 5.50%, 1/01/22

 

 

5,000

 

 

4,981,150

 

Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds (e)(g):

 

 

 

 

 

 

 

5.342%, 6/15/19

 

 

1,885

 

 

1,789,016

 

5.392%, 6/15/20

 

 

1,985

 

 

1,875,408

 

5.434%, 6/15/21

 

 

2,090

 

 

1,969,867

 

Illinois State Finance Authority, Student Housing Revenue Bonds (MJH Education Assistance IV LLC), Senior Series A, 5.50%, 6/01/19

 

 

2,750

 

 

1,908,362

 

Kane and Du Page Counties, Illinois, Community Unit School District 303 (Saint Charles), GO, CABS, Series B (b)(d)(j):

 

 

 

 

 

 

 

5.64%, 1/01/12

 

 

4,625

 

 

2,955,051

 

5.73%, 1/01/12

 

 

4,100

 

 

2,457,253

 

5.87%, 1/01/12

 

 

2,950

 

 

1,562,467

 

5.91%, 1/01/12

 

 

1,700

 

 

846,668

 

 

 

 

 

 

 

60,011,703

 

Indiana—12.5%

 

 

 

 

 

 

 

Indiana Health Facilities Financing Authority Revenue Bonds (Sisters of St. Francis Health System), 5.75%, 11/01/11 (j)

 

 

13,970

 

 

15,238,336

 

Indianapolis, Indiana, Airport Authority, Special Facilities, Revenue Refunding Bonds (Federal Express Corporation Project), AMT, 5.10%, 1/15/17

 

 

2,500

 

 

2,369,975

 

Lawrence, Indiana, M/F Housing, Revenue Refunding Bonds (Pinnacle Apartments Project), AMT, 5.40%, 6/01/24 (h)

 

 

2,895

 

 

2,895,608

 

Petersburg, Indiana, PCR, Refunding (Indianapolis Power & Light Co. Project), AMT, 5.75%, 8/01/21

 

 

4,000

 

 

3,956,360

 

Vincennes, Indiana, EDR, Refunding, 6.25%, 1/01/24

 

 

4,070

 

 

3,690,839

 

 

 

 

 

 

 

28,151,118

 

Kentucky—1.3%

 

 

 

 

 

 

 

Kentucky Housing Corporation, Housing Revenue Bonds, AMT, Series C, 4.625%, 7/01/22

 

 

3,195

 

 

3,016,911

 

Louisiana—1.1%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority Revenue Bonds (Department of Public Safety), Term Bond 1, 5.875%, 6/15/14 (f)

 

 

2,485

 

 

2,573,491

 

Maryland—2.1%

 

 

 

 

 

 

 

Frederick County, Maryland, Special Obligation Tax Bonds (Urbana Community Development Authority), Series A, 5.80%, 7/01/20

 

 

4,710

 

 

4,646,038

 

Michigan—2.1%

 

 

 

 

 

 

 

Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Oakwood Obligated Group), Series A, 5%, 7/15/18

 

 

1,000

 

 

998,410

 

(Sparrow Obligated Group), 4.50%, 11/15/26

 

 

3,500

 

 

3,094,560

 

Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds (Development Area Number 3), 5.375%, 6/01/12 (i)(j)

 

 

640

 

 

689,088

 

 

 

 

 

 

 

4,782,058

 

Mississippi—4.2%

 

 

 

 

 

 

 

Lowndes County, Mississippi, Solid Waste Disposal and PCR, Refunding (Weyerhaeuser Company Project), Series A, 6.80%, 4/01/22

 

 

9,000

 

 

9,434,160

 

Nevada—2.9%

 

 

 

 

 

 

 

Henderson, Nevada, Local Improvement Districts, Special Assessment, Series NO T-18, 5.15%, 9/01/21

 

 

1,000

 

 

762,680

 

Las Vegas, Nevada, Special Assessment Improvement, District Number 809 (Summerlin Area), 5.35%, 6/01/17

 

 

1,065

 

 

1,031,218

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

22

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments (continued)

BlackRock Municipal 2018 Term Trust (BPK)

 

(Percentages shown are based on Net Assets)

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

Nevada—(concluded)

 

 

 

 

 

 

 

Nevada State Department of Business and Industry, Solid Waste Disposal Revenue Bonds (Republic Services Inc. Project), AMT, 5.625%, 12/01/26

 

$

5,000

 

$

4,697,350

 

 

 

 

 

 

 

6,491,248

 

New Hampshire—6.5%

 

 

 

 

 

 

 

New Hampshire Health and Education Facilities Authority Revenue Bonds (Exeter Hospital Project), 6%, 10/01/24

 

 

2,025

 

 

2,103,894

 

New Hampshire State Business Finance Authority, PCR, Refunding (f):

 

 

 

 

 

 

 

(Public Service Company Project), AMT, Series B, 4.75%, 5/01/21

 

 

6,000

 

 

5,615,400

 

(Public Service Company of New Hampshire Project), Series C, 5.45%, 5/01/21

 

 

7,000

 

 

6,973,890

 

 

 

 

 

 

 

14,693,184

 

New Jersey—12.5%

 

 

 

 

 

 

 

New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/24

 

 

7,675

 

 

7,413,973

 

New Jersey EDA, EDR, Special Assessment Refunding Bonds (Kapkowski Road Landfill Reclamation Improvement District Project), AMT, 5.50%, 4/01/16

 

 

8,410

 

 

8,048,538

 

New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT:

 

 

 

 

 

 

 

7%, 11/15/30

 

 

4,065

 

 

3,287,081

 

7.20%, 11/15/30

 

 

6,750

 

 

5,587,313

 

New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds (AtlantiCare Regional Medical Center), 5%, 7/01/20

 

 

1,500

 

 

1,509,720

 

New Jersey State Housing and Mortgage Finance Agency, S/F Housing Revenue Bonds, AMT, Series T, 4.55%, 10/01/22

 

 

2,500

 

 

2,349,650

 

 

 

 

 

 

 

28,196,275

 

New York—6.9%

 

 

 

 

 

 

 

New York City, New York, City IDA, Special Facility Revenue Bonds (American Airlines, Inc.—JFK International Airport), AMT, 7.625%, 8/01/25

 

 

3,460

 

 

3,048,433

 

New York City, New York, GO, Sub-Series F-1, 5%, 9/01/18

 

 

7,500

 

 

7,823,850

 

Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series B-1C, 5.50%, 6/01/20

 

 

4,500

 

 

4,708,530

 

 

 

 

 

 

 

15,580,813

 

North Carolina—3.1%

 

 

 

 

 

 

 

North Carolina, HFA, Home Ownership Revenue Bonds, AMT, Series 28A, 4.65%, 7/01/23

 

 

3,140

 

 

2,936,748

 

Wake County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Refunding Bonds (Carolina Power & Light Company Project), 5.375%, 2/01/17

 

 

4,000

 

 

4,119,160

 

 

 

 

 

 

 

7,055,908

 

Ohio—2.5%

 

 

 

 

 

 

 

American Municipal Power, Inc., Ohio, Revenue Refunding Bonds (Prairie State Energy Campus Project), Series A, 5.25%, 2/15/23

 

 

5,000

 

 

5,094,300

 

Pinnacle Community Infrastructure Financing Authority, Ohio, Revenue Bonds, Series A, 6%, 12/01/22

 

 

480

 

 

459,888

 

 

 

 

 

 

 

5,554,188

 

Oklahoma—1.1%

 

 

 

 

 

 

 

Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds, Series A, 7.75%, 6/01/35

 

 

2,700

 

 

2,525,364

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

Pennsylvania—5.7%

 

 

 

 

 

 

 

Montgomery County, Pennsylvania, IDA, Revenue Bonds (Whitemarsh Continuing Care Project), 6%, 2/01/21

 

$

2,000

 

$

1,893,440

 

Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue Bonds, Series B, 5.50%,
10/01/11 (d)(j)

 

 

5,000

 

 

5,408,700

 

West Cornwall Township, Pennsylvania, Municipal Authority College Revenue Bonds (Elizabethtown College Project) (j):

 

 

 

 

 

 

 

5.90%, 12/15/11

 

 

2,500

 

 

2,717,500

 

6.00%, 12/15/11

 

 

2,650

 

 

2,889,136

 

 

 

 

 

 

 

12,908,776

 

South Carolina—2.3%

 

 

 

 

 

 

 

South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance), Series A, 6.125%, 8/01/23

 

 

5,000

 

 

5,112,300

 

Tennessee—3.1%

 

 

 

 

 

 

 

Knox County, Tennessee, Health, Educational and Housing Facilities Board, Hospital Facilities Revenue Refunding Bonds (Covenant Health), CABS, Series A, 5.63%, 1/01/19 (b)(d)

 

 

12,000

 

 

6,906,600

 

Texas—12.6%

 

 

 

 

 

 

 

Alliance Airport Authority, Inc., Texas, Special Facilities Revenue Refunding Bonds (FedEx Corp. Project), AMT, 4.85%, 4/01/21

 

 

2,000

 

 

1,786,160

 

Birdville, Texas, Independent School District, GO, Refunding, CABS (b):

 

 

 

 

 

 

 

5.40%, 2/15/18

 

 

1,615

 

 

1,039,446

 

5.46%, 2/15/19

 

 

1,815

 

 

1,100,924

 

5.51%, 2/15/20

 

 

2,625

 

 

1,498,691

 

5.54%, 2/15/21

 

 

2,500

 

 

1,346,800

 

Brazos River Authority, Texas, PCR, Refunding (TXU Energy Company Project), AMT, Series C, 5.75%, 5/01/36

 

 

10,010

 

 

9,391,082

 

Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement Bonds, AMT, Series A (a):

 

 

 

 

 

 

 

5.875%, 11/01/17

 

 

5,000

 

 

5,045,850

 

5.875%, 11/01/18

 

 

5,000

 

 

5,029,850

 

North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier, Series A, 6%, 1/01/24

 

 

2,000

 

 

2,111,100

 

 

 

 

 

 

 

28,349,903

 

Virginia—1.2%

 

 

 

 

 

 

 

Virginia State, HDA, Commonwealth Mortgage Revenue Refunding Bonds, AMT, Sub-Series E-2, 4.375%, 10/01/19

 

 

2,750

 

 

2,585,633

 

Wisconsin—8.1%

 

 

 

 

 

 

 

Franklin, Wisconsin, Solid Waste Disposal, Revenue Bonds, 4.95%, 4/01/16

 

 

1,990

 

 

1,879,933

 

Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Froedtert and Community Health):

 

 

 

 

 

 

 

5.375%, 10/01/11 (j)

 

 

4,560

 

 

4,915,270

 

5.375%, 10/01/21

 

 

440

 

 

460,161

 

Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Wheaton Franciscan Services, Inc.), 6.25%, 2/15/12 (j)

 

 

10,000

 

 

11,092,100

 

 

 

 

 

 

 

18,347,464

 

Multi-State—11.2%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 6.80%, 10/31/52 (c)(k)

 

 

14,000

 

 

15,398,740

 

MuniMae TE Bond Subsidiary LLC (c)(k):

 

 

 

 

 

 

 

5.20%, 6/29/49

 

 

6,000

 

 

5,889,720

 

Series D, 5.90%, 11/29/49

 

 

4,000

 

 

3,860,800

 

 

 

 

 

 

 

25,149,260

 

Puerto Rico—1.2%

 

 

 

 

 

 

 

Puerto Rico Commonwealth, Public Improvement, GO, Series B, 5.25%, 7/01/17

 

 

2,665

 

 

2,683,175

 

Total Municipal Bonds—155.0%

 

 

 

 

 

349,732,116

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

23

 


Schedule of Investments (concluded)

BlackRock Municipal 2018 Term Trust (BPK)

 

(Percentages shown are based on Net Assets)

 

Corporate Bonds

 

 

Par
(000)

 

 

Value

 

San Manuel Entertainment Authority Series 04-C, 4.50%, 12/01/16 (c)

 

$

4,000

 

$

3,787,520

 

Total Corporate Bonds—1.7%

 

 

 

 

 

3,787,520

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (l)

 

 

 

 

 

 

 

Chicago, Illinois, Water Revenue Bonds, Second Lien, 5%, 11/1/20 (d)

 

 

5,000

 

 

5,294,450

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts (Cost—$5,290,413)—2.3%

 

 

 

 

 

5,294,450

 

Total Long-Term Investments
(Cost—$359,841,567)—156.7%

 

 

 

 

 

358,814,086

 

 

Short-Term Securities

 

 

Shares

 

 

Value

 

Merrill Lynch Institutional Tax-Exempt Fund, 1.73% (m)(n)

 

 

6,110,145

 

$

6,110,145

 

Total Short-Term Securities
(Cost—$6,110,145)—2.7%

 

 

 

 

 

6,110,145

 

Total Investments
(Cost—$365,951,712*)—161.7%

 

 

 

 

 

364,924,231

 

Liabilities in Excess of Other Assets—(0.7)%

 

 

 

 

 

(1,582,970

)

Liability for Trust Certificates, Including Interest Expense and Fees Payable—(1.7)%

 

 

 

 

 

(3,756,824

)

Preferred Shares, at Redemption Value—(59.3)%

 

 

 

 

 

(133,892,680

)

Net Assets Applicable to Common Stock—100.0%

 

 

 

 

$

225,691,757

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

362,393,673

 

Gross unrealized appreciation

 

$

9,051,791

 

Gross unrealized depreciation

 

 

(10,271,233

)

Net unrealized depreciation

 

$

(1,219,442

)

(a)

FGIC Insured.

(b)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(c)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are considered to be liquid.

(d)

FSA Insured.

(e)

AMBAC Insured.

(f)

MBIA Insured.

(g)

Represents a step bond. Rate shown reflects the effective yield at the time of purchase.

(h)

FNMA Collateralized.

(i)

ACA Insured.

(j)

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

(k)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(l)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired the residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(m)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

Affiliate

 

Net
Activity

 

 

Dividend
Income

 

Merrill Lynch Institutional Tax-Exempt Fund

 

5,410,145

 

$

44,806

 

(n)

Represents the current yield as of report date.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

Investments in
Securities

 

Level 1

 

$

6,110,145

 

Level 2

 

 

358,814,086

 

Level 3

 

 

 

Total

 

$

364,924,231

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

24

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Municipal 2020 Term Trust (BKK)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

Alabama—0.4%

 

 

 

 

 

 

 

Courtland, Alabama, IDB, Solid Waste Disposal Revenue ReTrusting Bonds (International Paper Company Project), Series A, 4.75%, 5/01/17

 

$

1,165

 

$

1,075,190

 

Arizona—0.9%

 

 

 

 

 

 

 

Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds:

 

 

 

 

 

 

 

5%, 12/01/18

 

 

1,500

 

 

1,444,725

 

5.25%, 12/01/20

 

 

1,000

 

 

974,330

 

 

 

 

 

 

 

2,419,055

 

California—21.6%

 

 

 

 

 

 

 

California State, Various Purpose, GO, 5%, 11/01/22

 

 

12,000

 

 

12,229,800

 

California Statewide Communities Development Authority Revenue Bonds (John Muir Health), Series A, 5%, 8/15/22

 

 

5,000

 

 

5,029,550

 

Foothill/Eastern Corridor Agency, California, Toll Road Revenue ReTrusting Bonds, CABS (a):

 

 

 

 

 

 

 

5.953%, 1/15/21

 

 

12,500

 

 

5,876,125

 

5.844%, 1/15/22

 

 

10,000

 

 

4,368,600

 

Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds (b):

 

 

 

 

 

 

 

Series A-1, 6.625%, 6/01/13

 

 

3,000

 

 

3,382,350

 

Series A-1, 6.75%, 6/01/13

 

 

12,010

 

 

13,607,450

 

Series A-3, 7.875%, 6/01/13

 

 

975

 

 

1,150,890

 

Series A-5, 7.875%, 6/01/13

 

 

1,470

 

 

1,735,188

 

Series B, 5.375%, 6/01/10

 

 

10,000

 

 

10,423,000

 

Riverside County, California, Asset Leasing Corporation, Leasehold Revenue Bonds (Riverside County Hospital Project), 5.69%, 6/01/25 (a)(c)

 

 

6,865

 

 

2,814,513

 

 

 

 

 

 

 

60,617,466

 

Colorado—1.7%

 

 

 

 

 

 

 

E-470 Public Highway Authority, Colorado Revenue Bonds, CABS, Senior Series B, 5.36%, 9/01/22 (a)(c)

 

 

4,500

 

 

2,032,155

 

Park Creek Metropolitan District, Colorado, Senior Limited Tax Supported Revenue ReTrusting Bonds, 5.25%, 12/01/25

 

 

3,000

 

 

2,826,720

 

 

 

 

 

 

 

4,858,875

 

District of Columbia—5.2%

 

 

 

 

 

 

 

District of Columbia, Revenue ReTrusting Bonds (Friendship Public Charter School, Inc.) (d):

 

 

 

 

 

 

 

5.75%, 6/01/18

 

 

2,680

 

 

2,686,512

 

5%, 6/01/23

 

 

3,320

 

 

2,977,409

 

District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed Revenue ReTrusting Bonds, 6.50%, 5/15/33

 

 

4,215

 

 

4,050,699

 

Metropolitan Washington Airports Authority, D.C., Airport System Revenue ReTrusting Bonds, AMT, Series C-2, 5%, 10/01/24 (e)

 

 

5,000

 

 

4,864,050

 

 

 

 

 

 

 

14,578,670

 

Florida—15.4%

 

 

 

 

 

 

 

Bellalago, Florida, Educational Facilities Benefits District, Capital Improvement Special Assessment Bonds,
Series A, 5.85%, 5/01/22

 

 

4,315

 

 

4,222,616

 

Broward County, Florida, School Board, COP, Series A, 5.25%, 7/01/22 (e)

 

 

1,250

 

 

1,294,275

 

CFM Community Development District, Florida, Capital Improvement Revenue Bonds, Series B, 5.875%, 5/01/14

 

 

2,920

 

 

2,627,182

 

Grand Hampton Community Development District, Florida, Capital Improvement Special Assessment Bonds, 6.10%, 5/01/24

 

 

4,025

 

 

4,024,596

 

Habitat, Florida, Community Development, Special Assessment Bonds, 5.80%, 5/01/25

 

 

3,780

 

 

3,393,571

 

Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds (Baptist Medical), VRDN, 1.80%,
8/15/34 (f)

 

 

500

 

 

500,000

 

Lee County, Florida, Hospital Board of Directors, Hospital Revenue Bonds (Memorial Health System), VRDN, Series A, 2.04%, 4/01/25 (f)

 

 

2,700

 

 

2,700,000

 

Miami Beach, Florida, Health Facilities Authority, Hospital Revenue ReTrusting Bonds (Mount Sinai Medical Center of Florida), 6.75%, 11/15/21

 

 

5,475

 

 

5,593,589

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

Florida—(concluded)

 

 

 

 

 

 

 

Middle Village Community Development District, Florida, Special Assessment Bonds, Series A, 5.80%, 5/01/22

 

$

4,155

 

$

3,856,006

 

Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), VRDN (e)(f):

 

 

 

 

 

 

 

Series A-1, 3.50%, 10/01/41

 

 

300

 

 

300,000

 

Series A-2, 1.30%, 10/01/41

 

 

3,000

 

 

3,000,000

 

Pine Island Community Development District, Florida, Utilities System Revenue Bonds, 5.30%, 11/01/10

 

 

565

 

 

544,807

 

Stevens Plantation Community Development District, Florida, Special Assessment Revenue Bonds, Series B, 6.375%, 5/01/13

 

 

3,605

 

 

3,514,623

 

Village Community Development District Number 5, Florida, Special Assessment Bonds, Series A, 6%, 5/01/22

 

 

2,845

 

 

2,865,569

 

Westchester Community Development District Number 1, Florida, Special Assessment Bonds (Community Infrastructure), 6%, 5/01/23

 

 

5,355

 

 

4,760,970

 

 

 

 

 

 

43,197,804

 

Georgia—1.3%

 

 

 

 

 

 

 

Atlanta, Georgia, Water and Wastewater Revenue Bonds, VRDN, Series C, 1.50%, 11/01/41 (e)(f)

 

 

1,500

 

 

1,500,000

 

Richmond County, Georgia, Development Authority, Environmental Improvement Revenue Bonds (International Paper Co. Projects), AMT, Series A, 5.75%, 11/01/27

 

 

2,350

 

 

2,128,583

 

 

 

 

 

 

 

3,628,583

 

Illinois—12.2%

 

 

 

 

 

 

 

Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds, Class A, 8%, 6/15/23 (g)

 

 

2,155

 

 

1,993,181

 

Chicago, Illinois, O’Hare International Airport (h):

 

 

         

General Airport Revenue Bonds, Third Lien, Series A, 5%, 1/01/21

 

 

5,000

 

 

5,037,300

 

General Revenue Bonds, Third Lien, Series A, 5%, 1/01/22

 

 

7,000

 

 

7,017,360

 

Illinois Development Finance Authority Revenue Bonds (Depaul University), Series C, 5.25%, 10/01/24

 

 

5,000

 

 

5,087,500

 

Illinois Educational Facilities Authority Revenue Bonds (Northwestern University), 5%, 12/01/21

 

 

4,800

 

 

4,942,272

 

Illinois State Finance Authority, Student Housing Revenue Bonds (MJH Education Assistance IV LLC):

 

 

 

 

 

 

 

Senior Series A, 5.50%, 6/01/19

 

 

3,250

 

 

2,255,338

 

Sub-Series B, 5%, 6/01/24

 

 

1,075

 

 

320,199

 

Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School District Number 220, GO, ReTrusting, 5.25%, 12/01/20 (e)

 

 

1,000

 

 

1,092,760

 

Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue ReTrusting Bonds (McCormick), Series A, 5.26%, 6/15/22 (a)(c)

 

 

13,455

 

 

6,689,153

 

 

 

 

 

 

 

34,435,063

 

Indiana—5.6%

 

 

 

 

 

 

 

Indianapolis, Indiana, Airport Authority, Special Facilities, Revenue ReTrusting Bonds (Federal Express Corporation Project), AMT, 5.10%, 1/15/17

 

 

10,000

 

 

9,479,900

 

Lawrence, Indiana, M/F Housing, Revenue ReTrusting Bonds (Pinnacle Apartments Project), AMT, 5.40%, 6/01/24 (i)

 

 

2,000

 

 

2,000,420

 

Vincennes, Indiana, EDR, ReTrusting, 6.25%, 1/01/24

 

 

4,805

 

 

4,357,366

 

 

 

 

 

 

 

15,837,686

 

Kansas—1.2%

 

 

 

 

 

 

 

Unified Government of Wyandotte County and Kansas City, Kansas, Sales Tax Special Obligation Revenue Bonds (Kansas International Speedway Corporation Project), 5.20%, 12/01/20 (a)(c)

 

 

6,440

 

 

3,486,294

 

Kentucky—0.7%

 

 

 

 

 

 

 

Kentucky Housing Corporation, Housing Revenue Bonds, AMT, Series C, 4.625%, 7/01/22

 

 

2,000

 

 

1,888,520

 

Louisiana—0.6%

 

 

 

 

 

 

 

De Soto Parish, Louisiana, Environmental Improvement Revenue Bonds (International Paper Co. Project), AMT, Series A, 5.85%, 11/01/27

 

 

2,000

 

 

1,834,000

 

Maryland—5.7%

 

 

 

 

 

 

 

Frederick County, Maryland, Special Obligation Tax Bonds (Urbana Community Development Authority):

 

 

 

 

 

 

 

6.625%, 7/01/25

 

 

3,000

 

 

3,012,480

 

Series A, 5.80%, 7/01/20

 

 

4,711

 

 

4,647,025

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

25

 


Schedule of Investments (continued)

BlackRock Municipal 2020 Term Trust (BKK)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Maryland—(concluded)

 

 

 

 

 

 

 

Maryland State Health and Higher Educational Facilities Authority, Revenue ReTrusting Bonds (MedStar Health, Inc.), 5.375%, 8/15/24

 

$

8,500

 

$

8,536,805

 

 

 

 

 

 

 

16,196,310

 

Massachusetts—1.6%

 

 

 

 

 

 

 

Massachusetts State Development Finance Agency, Solid Waste Disposal Revenue Bonds (Waste Management, Inc. Project), AMT, 5.45%, 6/01/14

 

 

4,500

 

 

4,459,455

 

Michigan—0.5%

 

 

 

 

 

 

 

Michigan State Hospital Finance Authority, Hospital Revenue ReTrusting Bonds (Sparrow Obligated Group), 4.50%, 11/15/26

 

 

1,500

 

 

1,326,240

 

Minnesota—0.4%

 

 

 

 

 

 

 

Minnesota State, Higher Education Facilities Authority Revenue Bonds (University of St. Thomas), Series Five Y, 5%, 10/01/24

 

 

1,250

 

 

1,256,563

 

Mississippi—1.0%

 

 

 

 

 

 

 

Warren County, Mississippi, Environmental Improvement Revenue Bonds (International Paper Company Project), AMT, Series A, 5.85%, 11/01/27

 

 

3,000

 

 

2,751,000

 

Missouri—3.8%

 

 

 

 

 

 

 

Missouri State Development Finance Board, Infrastructure Facilities Revenue Bonds (Branson Landing Project), Series A, 5.50%, 12/01/24

 

 

5,000

 

 

5,012,750

 

Missouri State Health and Educational Facilities Authority:

 

 

 

 

 

 

 

(BJC Health System), Series A, 5%, 5/15/20

 

 

5,500

 

 

5,594,380

 

(The Washington University), VRDN, Series A, 1.85%, 9/01/30 (f)

 

 

15

 

 

15,000

 

 

 

 

 

 

 

10,622,130

 

Nevada—2.3%

 

 

 

 

 

 

 

Clark County, Nevada, EDR, Revenue ReTrusting Bonds (Alexander Dawson School of Nevada Project), 5%, 5/15/20

 

 

5,000

 

 

5,019,100

 

Henderson, Nevada, Local Improvement Districts, Special Assessment, Series NO T-18, 5.15%, 9/01/21

 

 

1,765

 

 

1,346,130

 

 

 

 

 

 

 

6,365,230

 

New Hampshire—5.1%

 

 

 

 

 

 

 

New Hampshire Health and Education Facilities Authority, Revenue ReTrusting Bonds (Elliot Hospital), Series B, 5.60%, 10/01/22

 

 

5,000

 

 

5,071,650

 

New Hampshire State Business Finance Authority, PCR, ReTrusting (Public Service Company Project), AMT, Series B, 4.75%, 5/01/21 (c)

 

 

10,000

 

 

9,359,000

 

 

 

 

 

 

 

14,430,650

 

New Jersey—12.0%

 

 

 

 

 

 

 

Middlesex County, New Jersey, Improvement Authority Revenue Bonds (George Street Student Housing Project), Series A, 5%, 8/15/23

 

 

1,000

 

 

972,030

 

New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/24

 

 

10,675

 

 

10,311,943

 

New Jersey EDA, EDR (Kapkowski Road Landfill Reclamation Improvement District Project), AMT, Series B, 6.50%, 4/01/31

 

 

7,500

 

 

7,428,750

 

New Jersey EDA, First Mortgage Revenue ReTrusting Bonds (The Winchester Gardens at Ward Homestead Project), Series A, 4.80%, 11/01/13

 

 

1,000

 

 

986,070

 

New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT:

 

 

 

 

 

 

 

7%, 11/15/30

 

 

5,000

 

 

4,043,150

 

9%, 6/01/33

 

 

1,500

 

 

1,499,805

 

New Jersey Health Care Facilities Financing Authority, Revenue ReTrusting Bonds:

 

 

 

 

 

 

 

(AtlantiCare Regional Medical Center), 5%, 7/01/20

 

 

2,110

 

 

2,123,673

 

(Capital Health System Inc.), Series A, 5.75%, 7/01/23

 

 

4,000

 

 

4,044,960

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Jersey—(concluded)

 

 

 

 

 

 

 

New Jersey State Housing and Mortgage Finance Agency, S/F Housing Revenue Bonds, AMT, Series T, 4.55%, 10/01/22

 

$

2,500

 

$

2,349,650

 

 

 

 

 

 

 

33,760,031

 

New York—7.9%

 

 

 

 

 

 

 

New York City, New York, City IDA, Special Facility Revenue Bonds:

 

 

 

 

 

 

 

(American Airlines, Inc. - JFK International Airport), AMT, 7.625%, 8/01/25

 

 

5,635

 

 

4,964,717

 

(Continental Airlines Inc. Project), AMT, 7.75%, 8/01/31

 

 

5,000

 

 

4,374,250

 

New York State Energy Research and Development Authority, Gas Facilities Revenue ReTrusting Bonds (Brooklyn Union Gas Company/Keyspan), AMT, Series A, 4.70%, 2/01/24 (j)

 

 

8,500

 

 

7,676,690

 

Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series B-1C, 5.50%, 6/01/20

 

 

5,000

 

 

5,231,700

 

 

 

 

 

 

 

22,247,357

 

Ohio—7.2%

 

 

 

 

 

 

 

American Municipal Power, Inc., Ohio, Revenue ReTrusting Bonds (Prairie State Energy Campus Project), Series A, 5.25%, 2/15/23

 

 

5,000

 

 

5,094,300

 

Cuyahoga County, Ohio, Revenue ReTrusting Bonds, Series A:

 

 

 

 

 

 

 

6%, 1/01/19

 

 

3,000

 

 

3,239,970

 

6%, 1/01/20

 

 

10,000

 

 

10,799,900

 

Pinnacle Community Infrastructure Financing Authority, Ohio, Revenue Bonds, Series A, 6%, 12/01/22

 

 

1,060

 

 

1,015,586

 

 

 

 

 

 

 

20,149,756

 

Oklahoma—1.1%

 

 

 

 

 

 

 

Tulsa, Oklahoma, Municipal Airport Trust, Revenue ReTrusting Bonds, Series A, 7.75%, 6/01/35

 

 

3,350

 

 

3,133,322

 

Pennsylvania—5.8%

 

 

 

 

 

 

 

Lancaster County, Pennsylvania, Hospital Authority Revenue Bonds (Lancaster General Hospital Project), 5.75%, 9/15/13 (b)

 

 

7,500

 

 

8,274,900

 

Montgomery County, Pennsylvania, IDA, Revenue Bonds (Whitemarsh Continuing Care Project), 6%, 2/01/21

 

 

1,275

 

 

1,207,068

 

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (LaSalle University), 5.50%, 5/01/26

 

 

6,680

 

 

6,682,271

 

Philadelphia, Pennsylvania, Water and Wastewater Revenue ReTrusting Bonds, VRDN, 1.52%, 6/15/23 (e)(f)

 

 

90

 

 

90,000

 

 

 

 

 

 

 

16,254,239

 

Rhode Island—1.6%

 

 

 

 

 

 

 

Rhode Island State Health and Educational Building Corporation, Hospital Financing Revenue Bonds (South County Hospital), Series A, 5.875%, 9/15/08 (b)

 

 

4,500

 

 

4,537,305

 

Tennessee—3.4%

 

 

 

 

 

 

 

Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series A, 5.25%, 9/01/20

 

 

10,000

 

 

9,639,500

 

Texas—7.2%

 

 

 

 

 

 

 

Brazos River Authority, Texas, PCR, ReTrusting (TXU Energy Company LLC Project), AMT, Series A, 6.75%, 4/01/38

 

 

1,100

 

 

1,038,477

 

North Texas Tollway Authority, System Revenue ReTrusting Bonds, First Tier, Series A, 6%, 1/01/24

 

 

2,000

 

 

2,111,100

 

Port Corpus Christi, Texas, Industrial Development Corporation Revenue ReTrusting Bonds, Series C, 5.40%, 4/01/18

 

 

3,500

 

 

3,463,145

 

Texas State Turnpike Authority, Central Texas Turnpike System First Tier Revenue Bonds, CABS, Series A (a)(h):

 

 

 

 

 

 

 

5.37%, 8/15/21

 

 

7,990

 

 

3,944,983

 

5.51%, 8/15/24

 

 

8,450

 

 

3,457,149

 

Weatherford, Texas, Independent School District, GO, ReTrusting, CABS (a):

 

 

 

 

 

 

 

6.876%, 2/15/11 (b)

 

 

4,040

 

 

1,859,329

 

6.906%, 2/15/11 (b)

 

 

4,040

 

 

1,755,663

 

6.876%, 2/15/23

 

 

2,905

 

 

1,299,784

 

6.906%, 2/15/24

 

 

2,905

 

 

1,227,333

 

 

 

 

 

 

 

20,156,963

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

26

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments (concluded)

BlackRock Municipal 2020 Term Trust (BKK)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Virginia—8.0%

 

 

 

 

 

 

 

Celebrate North Community Development Authority, Virginia, Special Assessment Revenue Bonds, Series B, 6.60%, 3/01/25

 

$

5,000

 

$

4,979,400

 

Charles City County, Virginia, EDA, Solid Waste Disposal Revenue Bonds (Waste Management, Inc.), AMT, 5.125%, 8/01/27

 

 

10,000

 

 

9,897,600

 

Mecklenburg County, Virginia, IDA, Exempt Facility Revenue ReTrusting Bonds (UAE LP Project), 6.50%, 10/15/17

 

 

7,500

 

 

7,765,125

 

 

 

 

 

 

 

22,642,125

 

Washington—3.0%

 

 

 

 

 

 

 

Washington State, Compound Interest Bonds, GO, Series S-5, 5.02%, 1/01/19 (a)(j)

 

 

10,000

 

 

6,070,100

 

Washington State, GO, CABS, Series F, 5.33%, 12/01/21 (a)(c)

 

 

4,630

 

 

2,399,035

 

 

 

 

 

 

 

8,469,135

 

Wisconsin—2.1%

 

 

 

 

 

 

 

Wisconsin State Health and Educational Facilities Authority, Revenue ReTrusting Bonds (Wheaton Franciscan Services, Inc.), Series A:

 

 

 

 

 

 

 

5.50%, 8/15/17

 

 

2,880

 

 

2,845,296

 

5.50%, 8/15/18

 

 

3,190

 

 

3,114,876

 

 

 

 

 

 

 

5,960,172

 

Multi-State—7.9%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust (g)(k):

 

 

 

 

 

 

 

5.75%, 4/30/15

 

 

1,000

 

 

1,043,700

 

6%, 4/30/15

 

 

4,000

 

 

4,179,200

 

6%, 4/30/19

 

 

2,500

 

 

2,643,475

 

6.30%, 4/30/19

 

 

2,500

 

 

2,668,700

 

MuniMae TE Bond Subsidiary LLC (g)(k):

 

 

 

 

 

 

 

5.40%, 6/29/49

 

 

5,000

 

 

4,947,550

 

5.80%, 6/29/49

 

 

5,000

 

 

4,846,750

 

Series D, 5.90%, 11/29/49

 

 

2,000

 

 

1,930,400

 

 

 

 

 

 

 

22,259,775

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico—5.4%

 

 

 

 

 

 

 

Puerto Rico Commonwealth, Public Improvement, GO, Series B, 5.25%, 7/01/17

 

$

3,300

 

$

3,322,506

 

Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125%, 7/01/13 (b)

 

 

10,900

 

 

11,810,477

 

 

 

 

 

 

 

15,132,983

 

U.S. Virgin Islands—0.4%

 

 

 

 

 

 

 

Virgin Islands Public Finance Authority, Senior Lien Revenue Bonds (Matching Trust Loan Note), Series A, 5.25%, 10/01/17

 

 

1,000

 

 

1,009,990

 

Total Municipal Bonds (Cost—$456,994,061)—160.2%

 

 

 

 

 

450,617,437

 

 

Corporate Bonds

 

 

 

 

 

 

 

San Manuel Entertainment Authority Series 04-C, 4.50%, 12/01/16 (g)

 

 

4,000

 

 

3,787,520

 

Total Corporate Bonds (Cost—4,000,000)—1.3%

 

 

 

 

 

3,787,520

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (l)

 

 

 

 

 

 

 

Illinois—1.9%

 

 

 

 

 

 

 

Chicago, Illinois, Water Revenue Refunding Bonds, Second Lien, 5%, 11/01/20 (e)

 

 

5,000

 

 

5,294,450

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts (Cost—5,290,413)—1.9%

 

 

 

 

 

5,294,450

 

Total Investments (Cost—$466,284,474*)—163.4%

 

 

 

 

 

459,699,407

 

Liabilities in Excess of Other Assets—(0.3)%

 

 

 

 

 

(778,803

)

Liability for Trust Certificates, Including Interest Expense and Fees Payable—(1.3)%

 

 

 

 

 

(3,756,824

)

Preferred Shares, at Redemption Value—(61.8)%

 

 

 

 

 

(173,903,947

)

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

281,259,833

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

461,921,530

 

Gross unrealized appreciation

 

$

9,724,041

 

Gross unrealized depreciation

 

 

(15,696,164

)

Net unrealized depreciation

 

$

(5,972,123

)

(a)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(b)

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

(c)

MBIA Insured.

(d)

ACA Insured.

(e)

FSA Insured.

(f)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(g)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are considered to be liquid.

(h)

AMBAC Insured.

(i)

FNMA Collateralized.

(j)

FGIC Insured.

(k)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(l)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

Investments in
Securities

 

Level 1

 

 

 

Level 2

 

$

459,699,407

 

Level 3

 

 

 

Total

 

$

459,699,407

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

27

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Strategic Municipal Trust (BSD)

 

(Percentages shown are based on Net Assets)

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

Alabama—10.7%

 

 

 

 

 

 

 

Alabama State Public School and College Authority, Capital Improvement Revenue Bonds, Series C, 5.75%, 7/01/18

 

$

7,000

 

$

7,275,100

 

Courtland, Alabama, IDB, Solid Waste Disposal Revenue Refunding Bonds (Champion International Corporation Project), AMT, Series A, 6.70%, 11/01/29

 

 

3,000

 

 

3,013,830

 

 

 

 

 

 

 

10,288,930

 

Arizona—4.3%

 

 

 

 

 

 

 

Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds:

 

 

 

 

 

 

 

5%, 12/01/32

 

 

1,455

 

 

1,291,778

 

5%, 12/01/37

 

 

2,390

 

 

2,082,240

 

San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project):

 

 

 

 

 

 

 

6.25%, 5/01/15

 

 

210

 

 

197,058

 

7%, 5/01/20

 

 

210

 

 

191,241

 

7.25%, 5/01/27

 

 

420

 

 

376,744

 

 

 

 

 

 

 

4,139,061

 

California—14.2%

 

 

 

 

 

 

 

California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding Corporation), Sub-Series C, 6.30%, 6/01/55 (a)

 

 

3,095

 

 

62,302

 

California State, GO, 5%, 3/01/33 (b)

 

 

5,000

 

 

4,936,800

 

California State, GO, Refunding, 5%, 6/01/32

 

 

1,950

 

 

1,933,796

 

University of California Revenue Bonds, Series B, 4.75%, 5/15/38

 

 

1,835

 

 

1,777,968

 

West Valley Mission Community College District, California, GO (Election of 2004), Series A, 4.75%, 8/01/30 (c)

 

 

5,000

 

 

4,966,000

 

 

 

 

 

 

 

13,676,866

 

Colorado—4.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre Valley Health Care), 5.20%, 3/01/31 (c)

 

 

240

 

 

243,444

 

Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Subordinate Lien, Series C, 5%, 11/15/45 (c)

 

 

445

 

 

446,063

 

Northwest Parkway Public Highway Authority, Colorado, Senior Revenue Bonds, CABS, Series B, 6.30%, 6/15/11 (a)(c)(d)

 

 

10,000

 

 

2,836,200

 

Park Creek Metropolitan District, Colorado, Senior Limited Tax Supported Revenue Refunding Bonds, 5.50%, 12/01/37

 

 

440

 

 

405,209

 

 

 

 

 

 

 

3,930,916

 

Connecticut—7.1%

 

 

 

 

 

 

 

Mashantucket Western Pequot Tribe, Connecticut, Special Revenue Refunding Bonds:

 

 

 

 

 

 

 

Sub-Series A, 5.50%, 9/01/28

 

 

1,500

 

 

1,318,845

 

Sub-Series B, 5.75%, 9/01/27 (e)

 

 

6,000

 

 

5,485,680

 

 

 

 

 

 

 

6,804,525

 

Florida—15.0%

 

 

 

 

 

 

 

Arborwood Community Development District, Florida, Capital Improvement Special Assessment Bonds (Master Infrastructure Projects), Series B, 5.10%, 5/01/14

 

 

1,585

 

 

1,419,431

 

Halifax Hospital Medical Center, Florida, Hospital Revenue Refunding Bonds, Series A, 5%, 6/01/38

 

 

1,050

 

 

908,691

 

Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum Company), AMT, Series A, 7.125%, 4/01/30

 

 

3,300

 

 

3,167,703

 

Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds (Baptist Medical Center Project), Series A, 5%, 8/15/37

 

 

715

 

 

662,362

 

Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Mount Sinai Medical Center of Florida), 6.75%, 11/15/21

 

 

2,045

 

 

2,089,295

 

Orange County, Florida, Tourist Development, Tax Revenue Refunding Bonds, 4.75%, 10/01/32 (f)

 

 

5,265

 

 

4,912,666

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

Florida—(concluded)

 

 

 

 

 

 

 

Sumter Landing Community Development District, Florida, Recreational Revenue Bonds, Sub-Series B, 5.70%, 10/01/38

 

$

1,605

 

$

1,314,800

 

 

 

 

 

 

 

14,474,948

 

Georgia—0.6%

 

 

 

 

 

 

 

Main Street Natural Gas, Inc., Georgia, Gas Project Revenue Bonds, Series A, 6.375%, 7/15/38

 

 

580

 

 

556,452

 

Illinois—7.0%

 

 

 

 

 

 

 

Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds, Class A, 8%, 6/15/23 (e)

 

 

850

 

 

786,174

 

Illinois Educational Facilities Authority Revenue Bonds (Northwestern University), 5%, 12/01/33

 

 

5,000

 

 

5,037,550

 

Illinois State Finance Authority Revenue Bonds (Friendship Village of Schaumburg), Series A:

 

 

 

 

 

 

 

5.625%, 2/15/37

 

 

295

 

 

236,481

 

7%, 12/01/37

 

 

575

 

 

558,244

 

Illinois State Finance Authority, Student Housing Revenue Bonds (MJH Education Assistance IV LLC), Sub-Series B, 5.375%, 6/01/35

 

 

300

 

 

89,154

 

 

 

 

 

 

 

6,707,603

 

Kentucky—7.5%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority, Health System Revenue Refunding Bonds (Norton Healthcare, Inc.), Series B, 6.20%, 10/01/24 (a)(g)

 

 

17,780

 

 

7,245,884

 

Louisiana—1.3%

 

 

 

 

 

 

 

Saint Tammany Parish, Louisiana, Financing Authority, S/F Mortgage Revenue Bonds (Home Ownership Program), Series A, 5.25%, 12/01/39 (h)(i)

 

 

1,293

 

 

1,253,341

 

Maryland—2.2%

 

 

 

 

 

 

 

Maryland State Community Development Administration, Department of Housing and Community Development, Residential Revenue Refunding Bonds, AMT, Series A, 4.70%, 9/01/37

 

 

2,500

 

 

2,171,825

 

Michigan—2.9%

 

 

 

 

 

 

 

Michigan State Hospital Finance Authority, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Henry Ford Health System), Series A, 5.25%, 11/15/46

 

 

730

 

 

692,887

 

(Mercy Health Service), Series X, 5.75%, 8/15/09 (d)(g)

 

 

2,000

 

 

2,099,640

 

 

 

 

 

 

 

2,792,527

 

Missouri—6.6%

 

 

 

 

 

 

 

Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds (Plum Point Project), 4.60%, 1/01/36 (g)

 

 

2,385

 

 

2,084,919

 

Missouri State Health and Educational Facilities Authority, Health Facilities Revenue Refunding Bonds (Saint Anthony’s Medical Center), 6.125%, 12/01/10 (d)

 

 

2,000

 

 

2,169,240

 

Missouri State Housing Development Commission, S/F Mortgage Revenue Refunding Bonds (Homeownership Loan Program), AMT, Series B-1, 5.05%, 3/01/38 (h)(i)

 

 

2,195

 

 

2,108,715

 

 

 

 

 

 

 

6,362,874

 

Nebraska—1.2%

 

 

 

 

 

 

 

Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Series A, 4.75%, 2/01/44

 

 

1,205

 

 

1,147,413

 

Nevada—0.9%

 

 

 

 

 

 

 

Clark County, Nevada, EDR, Refunding (Alexander Dawson School of Nevada Project), 5%, 5/15/29

 

 

905

 

 

879,814

 

New Jersey—3.1%

 

 

 

 

 

 

 

Middlesex County, New Jersey, Improvement Authority, Subordinate Revenue Bonds (Heldrich Center Hotel/Conference Project), Series B, 6.25%, 1/01/37

 

 

645

 

 

547,173

 

New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/24

 

 

2,480

 

 

2,395,655

 

 

 

 

 

 

 

2,942,828

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

28

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments (continued)

BlackRock Strategic Municipal Trust (BSD)

 

(Percentages shown are based on Net Assets)

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

New York—4.2%

 

 

 

 

 

 

 

Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series A, 7%, 5/01/35

 

$

315

 

$

241,403

 

New York City, New York, City IDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 7.75%, 8/01/31

 

 

4,395

 

 

3,844,966

 

 

 

 

 

 

 

4,086,369

 

Ohio—2.9%

 

 

 

 

 

 

 

American Municipal Power, Inc., Ohio, Revenue Refunding Bonds (Prairie State Energy Campus Project), Series A, 5%, 2/15/38

 

 

1,185

 

 

1,132,090

 

Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Bonds, Series A-2, 6.50%, 6/01/47

 

 

1,880

 

 

1,710,988

 

 

 

 

 

 

 

2,843,078

 

Oklahoma—1.2%

 

 

 

 

 

 

 

Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds, Series A, 7.75%, 6/01/35

 

 

1,225

 

 

1,145,767

 

Pennsylvania—8.9%

 

 

 

 

 

 

 

Allegheny County, Pennsylvania, Hospital Development Authority, Revenue Refunding Bonds (West Penn Allegheny Health System), Series A, 5%, 11/15/13

 

 

1,750

 

 

1,666,630

 

Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds, AMT, Series A:

 

 

 

 

 

 

 

(Amtrak Project), 6.50%, 11/01/16

 

 

1,000

 

 

1,041,350

 

(Amtrak Project), 6.125%, 11/01/21

 

 

700

 

 

712,222

 

(Amtrak Project), 6.25%, 11/01/31

 

 

1,000

 

 

1,000,230

 

(Reliant Energy), 6.75%, 12/01/36

 

 

2,745

 

 

2,770,034

 

Pennsylvania Economic Development Financing Authority, Resource Recovery Revenue Refunding Bonds (Colver Project), Series G, 5.125%, 12/01/15

 

 

1,000

 

 

942,450

 

Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 97A, 4.60%, 10/01/27

 

 

420

 

 

377,819

 

Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds (Capital Projects and Equipment Program), 6.15%, 12/01/29 (j)

 

 

105

 

 

104,364

 

 

 

 

 

 

 

8,615,099

 

South Carolina—3.0%

 

 

 

 

 

 

 

South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance), Series C, 7%, 8/01/13 (d)

 

 

2,500

 

 

2,895,570

 

South Dakota—0.9%

 

 

 

 

 

 

 

South Dakota State Health and Educational Facilities Authority Revenue Bonds (Sanford Health), 5%, 11/01/40

 

 

910

 

 

851,005

 

Tennessee—2.1%

 

 

 

 

 

 

 

Memphis-Shelby County, Tennessee, Airport Authority, Airport Revenue Bonds, AMT, Series D, 6%, 3/01/24 (j)

 

 

2,000

 

 

2,013,000

 

Texas—11.6%

 

 

 

 

 

 

 

Brazos River Authority, Texas, PCR, Refunding (TXU Energy Company LLC Project), AMT, Series A, 8.25%, 10/01/30

 

 

730

 

 

730,387

 

Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior Lien, Series A, 6.146%, 11/15/38 (a)(g)

 

 

4,750

 

 

734,682

 

La Joya, Texas, Independent School District, GO, 5%, 2/15/34

 

 

4,060

 

 

4,077,539

 

Montgomery County, Texas, Municipal Utility District Number 46, Waterworks and Sewer System, GO, 4.75%, 3/01/30 (g)

 

 

295

 

 

284,533

 

San Antonio Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, 5.50%, 8/01/24

 

 

1,095

 

 

1,052,032

 

Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, 6.06%, 8/15/31 (a)(j)

 

 

15,000

 

 

3,821,100

 

Texas State, Water Financial Assistance, GO, Refunding, 5.75%, 8/01/22

 

 

500

 

 

519,665

 

 

 

 

 

 

 

11,219,938

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

Virginia—1.0%

 

 

 

 

 

 

 

Henrico County, Virginia, EDA, Residential Care Facility, Mortgage Revenue Refunding Bonds (Westminster-Canterbury Of Winchester, Inc.), 5%, 10/01/27

 

$

1,000

 

$

919,820

 

Washington—0.9%

 

 

 

 

 

 

 

Washington State Health Care Facilities Authority, Revenue Refunding Bonds (Providence Health System), Series A, 4.625%, 10/01/34 (k)

 

 

915

 

 

831,525

 

Wisconsin—6.1%

 

 

 

 

 

 

 

Wisconsin State Health and Educational Facilities Authority, Revenue Bonds (Ascension Health), Series A, 5%, 11/15/31

 

 

4,665

 

 

4,639,249

 

Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Franciscan Sisters Healthcare), 5%, 9/01/26

 

 

1,375

 

 

1,232,413

 

 

 

 

 

 

 

5,871,662

 

Multi-State—6.5%

 

 

 

 

 

 

 

Charter Mac Equity Trust, 7.60%, 11/30/50 (e)(l)

 

 

2,000

 

 

2,161,680

 

MuniMae TE Bond Subsidiary LLC, 6.87%, 6/30/49 (e)(l)

 

 

4,000

 

 

4,109,000

 

 

 

 

 

 

 

6,270,680

 

Puerto Rico—1.5%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25%, 7/01/34 (m)

 

 

1,355

 

 

1,408,021

 

Total Municipal Bonds (Cost—$137,362,662)—139.5%

 

 

 

 

 

134,347,341

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (n)

 

 

 

 

 

 

 

Alabama—0.8%

 

 

 

 

 

 

 

Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), Series C-2, 5%, 11/15/36

 

 

755

 

 

748,281

 

California—1.0%

 

 

 

 

 

 

 

Sacramento County, California, Airport System Revenue Bonds, AMT, Senior Series B, 5.25%, 7/01/39 (c)

 

 

1,000

 

 

987,299

 

Chicago—1.5%

 

 

 

 

 

 

 

Chicago Illinois Housing Authority Capital Program Revenue Refunding Bonds, 5%, 7/01/24 (c)

 

 

1,415

 

 

1,460,402

 

Colorado—3.4%

 

 

 

 

 

 

 

Colorado Health Facilities Authority Revenue Bonds (Catholic Health) (c):

 

 

 

 

 

 

 

Series C-3, 5.10%, 10/01/41

 

 

1,220

 

 

1,212,809

 

Series C-7, 5%, 9/01/36

 

 

780

 

 

775,125

 

Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre Valley Health Care)(c):

 

 

 

 

 

 

 

Series B, 5.25%, 3/01/36

 

 

485

 

 

484,299

 

Series C, 5.25%, 3/01/40

 

 

850

 

 

861,393

 

 

 

 

 

 

 

3,333,626

 

Connecticut—3.3%

 

 

 

 

 

 

 

Connecticut State Health and Educational Facilities Authority Revenue Bonds (Yale University):

 

 

 

 

 

 

 

Series T-1, 4.70%, 7/01/29

 

 

1,570

 

 

1,587,401

 

Series X-3, 4.85%, 7/01/37

 

 

1,550

 

 

1,553,703

 

 

 

 

 

 

 

3,141,104

 

Massachusetts—2.1%

 

 

 

 

 

 

 

Massachusetts State Water Resource Authority, Revenue Refunding Bonds, Series A, 5%, 8/01/41

 

 

1,980

 

 

1,987,102

 

Ohio—5.4%

 

 

 

 

 

 

 

Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Dayton Power and Light Company), Series B, 4.80%, 1/01/34 (k)

 

 

5,265

 

 

5,195,956

 

Tennessee—1.3%

 

 

 

 

 

 

 

Shelby County, Tennessee, Health, Educational and Housing Facilities Board Revenue Bonds (Saint Jude Childern’s Hospital), 5%, 7/01/31

 

 

1,270

 

 

1,277,563

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

29

 


Schedule of Investments (concluded)

BlackRock Strategic Municipal Trust (BSD)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender Option Bond Trusts (n)

 

 

Par
(000)

 

 

Value

 

Virginia—3.1%

 

 

 

 

 

 

 

University of Virginia, Revenue Refunding Bonds, 5%, 6/01/40

 

$

1,790

 

$

1,835,190

 

Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series H, Sub-Series H-1, 5.35%, 7/01/31 (g)

 

 

1,130

 

 

1,132,492

 

 

 

 

 

 

 

2,967,682

 

Washington—1.6%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority, Washington, Sales and Use Tax Revenue Bonds, Series A, 5%, 11/01/32 (c)

 

 

910

 

 

915,390

 

King County, Washington, Sewer Revenue Refunding Bonds, 5%, 1/01/36 (c)

 

 

620

 

 

619,301

 

 

 

 

 

 

 

1,534,691

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts
(Cost—23,045,925)—23.5%

 

 

 

 

 

22,633,706

 

 

Short-Term Securities

 

 

Shares

 

 

Value

 

Merrill Lynch Institutional Tax-Exempt Fund, 1.73% (o)(p)

 

 

1,100,933

 

$

1,100,933

 

Total Short-Term Securities (Cost—$1,100,933)—1.1%

 

 

 

 

 

1,100,933

 

Total Investments (Cost—$161,509,520*)—164.1%

 

 

 

 

 

158,081,980

 

Other Assets Less Liabilities—0.3%

 

 

 

 

 

287,466

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable—(14.8)%

 

 

 

 

 

(14,277,392

)

Preferred Shares, at Redemption Value—(49.6)%

 

 

 

 

 

(47,767,020

)

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

96,325,034

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

146,897,783

 

Gross unrealized appreciation

 

$

2,773,967

 

Gross unrealized depreciation

 

 

(5,839,049

)

Net unrealized depreciation

 

$

(3,065,082

)

(a)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(b)

CIFG Insured.

(c)

FSA Insured.

(d)

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

(e)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are considered to be liquid.

(f)

XL Capital Insured.

(g)

MBIA Insured.

(h)

FHLMC Collateralized.

(i)

FNMA/GNMA Collateralized.

(j)

AMBAC Insured.

(k)

FGIC Insured.

(l)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(m)

Assured Guaranty Insured.

(n)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(o)

Represents the current yield as of report date.

(p)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

Affiliate

 

Net
Activity

 

 

Dividend
Income

 

Merrill Lynch Institutional Tax-Exempt Fund

 

1,100,933

 

$

47,426

 

Forward interest rate swaps outstanding as of June 30, 2008 were as follows:

 

 

 

 

Notional
Amount
(000)

 

 

Unrealized
Appreciation
(Depreciation)

 

Pay a fixed rate of 3.639% and receive a floating rate based on 1-week Securities industry and Financial Markets Association Municipal Swap Index rate Broker, JPMorgan Chase Expires September 2018

 

$

8,035

 

$

(80,856

)

Pay a fixed rate of 3.646% and receive a floating rate based on 1-week Securities industry and Financial Markets Association Municipal Swap Index rate Broker, JPMorgan Chase Expires July 2023

 

$

14,150

 

 

51,803

 

Pay a fixed rate of 3.919% and receive a floating rate based on 1-week Securities industry and Financial Markets Association Municipal Swap Index rate Broker, Citibank NA Expires September 2028

 

$

2,670

 

 

(32,908

)

Total

 

 

 

 

$

(61,961

)

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

 

Investments in
Securities

 

 

Other Financial
Instruments*

 

Level 1

 

$

1,100,933

 

 

 

Level 2

 

 

156,981,047

 

$

(61,961

)

Level 3

 

 

 

 

 

Total

 

$

158,081,980

 

$

(61,961

)

 

*

Other financial instruments are swaps.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

30

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock California Insured Municipal 2008 Term Trust (BFC)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

California—68.1%

 

 

 

 

 

 

 

Alameda County, California, COP, Refunding, Series A, 3.80%, 12/01/08 (a)

 

$

2,635

 

$

2,649,809

 

Anaheim, California, Union High School District, GO, 3.50%, 8/01/08 (b)

 

 

1,060

 

 

1,061,537

 

California State Department of Water Resources, Power Supply Revenue Bonds, VRDN (b)(c):

 

 

 

 

 

 

 

Series C-7, 1.30%, 5/01/22

 

 

2,900

 

 

2,900,000

 

Series C-13, 1.25%, 5/01/22

 

 

445

 

 

445,000

 

California State Department of Water Resources, Power Supply Revenue Refunding Bonds, VRDN, Sub-Series G-4, 1.57%, 5/01/16 (b)(c)

 

 

2,385

 

 

2,385,000

 

California State, Economic Recovery, GO, VRDN, Series C-16, 1.25%, 7/01/23 (b)(c)

 

 

10,000

 

 

10,000,000

 

California State, GO:

 

 

 

 

 

 

 

6.25%, 9/01/08 (d)

 

 

2,000

 

 

2,014,700

 

6.30%, 9/01/08 (a)

 

 

15,000

 

 

15,111,150

 

5.50%, 4/01/09 (a)

 

 

3,000

 

 

3,080,460

 

California State, GO, Refunding, 5.50%, 2/01/10 (a)

 

 

3,000

 

 

3,128,190

 

California State Public Works Board, Energy Efficiency Revenue Bonds, Series A, 5.625%, 10/01/08 (e)

 

 

2,100

 

 

2,105,880

 

California Transit Finance Authority Revenue Bonds, VRDN, 1.32%, 10/01/27 (b)(c)

 

 

9,705

 

 

9,705,000

 

Castaic Lake Water Agency, California, COP, Refunding (Water System Improvement Project), Series A, 7.25%, 8/01/10 (a)

 

 

2,600

 

 

2,818,894

 

Chula Vista, California, COP, 4%, 8/01/08 (a)

 

 

1,000

 

 

1,001,570

 

Clovis, California, Unified School District, Capital Appreciation, GO, Series B, 5.70%, 8/01/08 (d)(f)(g)

 

 

5,500

 

 

5,489,385

 

East Bay Municipal Utility District, California, Water System Revenue Refunding Bonds, VRDN, Sub-Series A, 1.27%, 6/01/25 (b)(c)

 

 

3,705

 

 

3,705,000

 

El Paso de Robles, California, Capital Appreciation, GO, Series A, 3.83%, 8/01/09 (d)(f)(g)

 

 

1,855

 

 

1,800,630

 

Long Beach, California, Bond Finance Authority, Tax Allocation Revenue Bonds (North Long Beach Redevelopment Projects), Series A, 3.50%, 8/01/08 (e)

 

 

1,245

 

 

1,246,008

 

Los Angeles, California, Unified School District, COP (Multiple Properties Project), Series B, 3%, 10/01/08 (b)(f)

 

 

2,660

 

 

2,666,730

 

Los Angeles County, California, Capital Asset Leasing Corporation, Leasehold Revenue Refunding Bonds, 6%, 12/01/08 (e)

 

 

8,090

 

 

8,205,768

 

Los Angeles County, California, Metropolitan Transportation Authority, Revenue Refunding Bonds (Special Assessment District A1), Series A, 3.75%, 9/01/08 (e)

 

 

4,405

 

 

4,416,938

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

California—(concluded)

 

 

 

 

 

 

 

Mount Diablo, California, Unified School District, GO, 3.50%, 8/01/08 (b)

 

$

1,000

 

$

1,001,450

 

Orange County, California, Local Transportation Authority, Sales Tax Revenue Bonds, First Senior, 6%, 2/15/09 (a)

 

 

1,000

 

 

1,024,920

 

Pasadena, California, Unified School District, GO (Election of 1997), Series C, 3.50%, 11/01/08 (b)(f)

 

 

2,495

 

 

2,509,596

 

Sacramento, California, City Financing Authority Revenue Bonds (City Hall and Redevelopment Projects), Series A, 3.50%, 12/01/08 (b)

 

 

3,345

 

 

3,368,448

 

Sacramento, California, Municipal Utility District, Electric Revenue Refunding Bonds, Series C (f):

 

 

 

 

 

 

 

5.75%, 11/15/08 (d)

 

 

3,750

 

 

3,802,312

 

5.75%, 11/15/09 (a)

 

 

2,950

 

 

3,078,502

 

San Mateo County, California, Community College District, GO (Election of 2001), Series A, 3.30%, 9/01/08 (d)

 

 

1,000

 

 

1,002,230

 

Santa Ana, California, Unified School District, GO (Election of 1999), Series B, 3.64%, 8/01/08 (d)(g)

 

 

1,000

 

 

997,710

 

Watereuse Finance Authority, California, Revenue Bonds, VRDN, 1.32%, 5/01/28 (b)(c)

 

 

3,175

 

 

3,175,000

 

Western Placer, California, Unified School District, COP (School Facilities Project), VRDN, Series A, 1.35%, 8/01/26 (b)(c)

 

 

1,600

 

 

1,600,000

 

 

 

 

 

 

 

107,497,817

 

Puerto Rico—13.7%

 

 

 

 

 

 

 

Puerto Rico Commonwealth, Public Improvement, GO, Refunding, VRDN, Series A-3, 1.25%, 7/01/29 (b)(c)

 

 

5,900

 

 

5,900,000

 

Puerto Rico Electric Power Authority, Power Revenue Bonds, Series DD (b):

 

 

 

 

 

 

 

5%, 7/01/09

 

 

5,280

 

 

5,425,306

 

5%, 7/01/10

 

 

6,000

 

 

6,148,380

 

Puerto Rico Municipal Finance Agency, GO, Series A, 5.625%, 8/01/10 (b)

 

 

4,000

 

 

4,154,160

 

 

 

 

 

 

 

21,627,846

 

Total Municipal Bonds (Cost—$127,737,619)—81.8%

 

 

 

 

 

129,125,663

 

 

Short-Term Securities

 

 

 

 

 

 

 

U.S. Government Obligations

 

 

 

 

 

 

 

Freddie Mac, 2.42%, 11/10/08

 

 

21,071

 

 

21,071,497

 

U.S. Treasury Bills, 2.16%, 12/26/08

 

 

6,927

 

 

6,926,626

 

Total Short-Term Securities (Cost—$27,998,121)—17.7%

 

 

 

 

 

27,998,123

 

Total Investments (Cost—$155,735,740*)—99.5%

 

 

 

 

 

157,123,786

 

Other Assets Less Liabilities—0.5%

 

 

 

 

 

815,736

 

Net Assets—100.0%

 

 

 

 

$

157,939,522

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

31

 


Schedule of Investments (concluded)

BlackRock California Insured Municipal 2008 Term Trust (BFC)

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

155,290,585

 

Gross unrealized appreciation

 

$

1,834,123

 

Gross unrealized depreciation

 

 

(922

)

Net unrealized appreciation

 

$

1,833,201

 

(a)

MBIA Insured.

(b)

FSA Insured.

(c)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(d)

FGIC Insured.

(e)

AMBAC Insured.

(f)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(g)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

 

Investments in
Securities

 

Level 1

 

 

 

Level 2

 

$

157,123,786

 

Level 3

 

 

 

Total

 

$

157,123,786

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

32

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock California Municipal 2018 Term Trust (BJZ)

 

(Percentages shown are based on Net Assets)

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

California—123.8%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit Corporations, California, Revenue Bonds (San Diego Hospital Association), Series C, 5.375%, 3/01/21

 

$

2,100

 

$

2,101,365

 

California Health Facilities Financing Authority Revenue Bonds (Adventist Health System), Series A:

 

 

 

 

 

 

 

5%, 3/01/18

 

 

1,075

 

 

1,080,698

 

5%, 3/01/19

 

 

1,000

 

 

1,000,340

 

5%, 3/01/20

 

 

2,060

 

 

2,056,251

 

5%, 3/01/24

 

 

1,355

 

 

1,330,366

 

California Infrastructure and Economic Development Bank Revenue Bonds:

 

 

 

 

 

 

 

(J. David Gladstone Institute Project), 5.50%, 10/01/20

 

 

1,985

 

 

2,040,798

 

(Kaiser Hospital Assistance I-LLC), Series A, 5.55%, 8/01/31

 

 

6,500

 

 

6,560,905

 

California Pollution Control Financing Authority, PCR, Refunding (San Diego Gas & Electric Company), Series A, 5.90%, 6/01/14

 

 

3,100

 

 

3,247,746

 

California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, AMT:

 

 

 

 

 

 

 

(Republic Services Inc. Project), Series B, 5.25%, 6/01/23

 

 

2,500

 

 

2,335,700

 

(Waste Management Inc. Project), Series A, 5.125%, 7/01/31

 

 

4,000

 

 

3,880,600

 

California Pollution Control Financing Authority, Solid Waste Disposal Revenue Refunding Bonds (Republic Services Inc. Project), AMT, Series C, 5.25%, 6/01/23

 

 

2,500

 

 

2,335,700

 

California State Department of Water Resources, Power Supply Revenue Bonds, Series A, 5.125%, 5/01/12 (a)

 

 

6,500

 

 

7,018,570

 

California State Department of Water Resources, Power Supply Revenue Refunding Bonds, Series H, 5%, 5/01/22 (b)

 

 

3,500

 

 

3,626,385

 

California State, GO, Refunding:

 

 

 

 

 

 

 

5%, 11/01/11 (a)

 

 

4,740

 

 

5,042,223

 

5%, 11/01/20

 

 

260

 

 

264,470

 

California State, Public Works Board, Lease Revenue Bonds (Department of Forestry and Fire), Series E, 5%, 11/01/25

 

 

2,000

 

 

2,013,220

 

California State, Public Works Board, Lease Revenue Refunding Bonds, Series A:

 

 

 

 

 

 

 

(California Community Colleges), 5%, 12/01/17

 

 

2,020

 

 

2,045,129

 

(Trustees California State University), 5%, 10/01/17

 

 

2,415

 

 

2,442,555

 

California State, Veterans, GO, Refunding, AMT, Series BZ, 5.35%, 12/01/21 (c)

 

 

6,500

 

 

6,500,715

 

California Statewide Communities Development Authority, Revenue Refunding Bonds (Daughters of Charity National Health System), Series A, 5.25%, 7/01/24

 

 

5,000

 

 

4,842,250

 

Clovis, California, Unified School District, Capital Appreciation, GO (Election of 2004), Series A, 5.12%, 8/01/21 (d)(e)

 

 

7,500

 

 

3,841,725

 

Fontana, California, Public Financing Authority, Tax Allocation Revenue Refunding Bonds (North Fontana Redevelopment Project), Series A, 5.25%, 9/01/18 (f)

 

 

3,395

 

 

3,561,627

 

Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding Bonds, CABS, 5.858%, 1/15/21 (e)

 

 

20,000

 

 

9,401,800

 

Lathrop, California, Financing Authority Revenue Bonds (Water Supply Project):

 

 

 

 

 

 

 

5.80%, 6/01/21

 

 

995

 

 

967,657

 

5.85%, 6/01/22

 

 

1,040

 

 

1,012,929

 

5.90%, 6/01/23

 

 

1,000

 

 

975,760

 

Long Beach, California, Harbor Revenue Bonds, AMT, Series A, 5.25%, 5/15/18 (d)

 

 

5,000

 

 

5,056,050

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

 

(000)

 

 

Value

 

California—(concluded)

 

 

 

 

 

 

 

Los Angeles, California, Harbor Department Revenue Refunding Bonds, AMT, Series B, 5.50%, 8/01/21 (g)

 

$

10,025

 

$

10,067,606

 

Poway, California, Unified School District, Special Tax Bonds (Community Facilities District Number 6), 5%, 9/01/25

 

 

750

 

 

717,450

 

Riverside, California, Unified School District, GO (Election of 2001), Series A, 5.25%, 2/01/23 (d)

 

 

5,000

 

 

5,154,300

 

San Bernardino County, California, Special Tax Bonds (Community Facilities District Number 2002-1):

 

 

 

 

 

 

 

5.35%, 9/01/17

 

 

105

 

 

103,380

 

5.50%, 9/01/18

 

 

245

 

 

241,979

 

5.60%, 9/01/19

 

 

500

 

 

494,970

 

5.70%, 9/01/20

 

 

355

 

 

353,001

 

San Diego County, California, COP, Refunding (MTS Tower), 5.25%, 11/01/19 (g)

 

 

2,980

 

 

3,089,426

 

Santa Clara Valley, California, Transportation Authority, Sales Tax Revenue Bonds, Series A, 5%, 6/01/11 (a)(c)

 

 

2,135

 

 

2,261,435

 

Stockton-East Water District, California, COP, Refunding, Series B, 5.93%, 4/01/19 (d)(e)

 

 

4,590

 

 

2,552,774

 

Vista, California, COP, Refunding (Community Projects) (c):

 

 

 

 

 

 

 

5%, 5/01/19

 

 

1,000

 

 

1,040,800

 

4.75%, 5/01/21

 

 

1,115

 

 

1,124,544

 

 

 

 

 

 

 

113,785,199

 

Multi-State—10.1%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 6.625%, 6/30/49 (h)(i)

 

 

4,000

 

 

4,136,680

 

MuniMae TE Bond Subsidiary LLC, 6.875%, 6/30/49 (h)(i)

 

 

5,000

 

 

5,136,250

 

 

 

 

 

 

 

9,272,930

 

Puerto Rico—17.0%

 

 

 

 

 

 

 

Puerto Rico Commonwealth, Public Improvement, GO, Series B, 5.25%, 7/01/17

 

 

1,035

 

 

1,042,059

 

Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds (j):

 

 

 

 

 

 

 

Series C, 5.75%, 7/01/19

 

 

4,405

 

 

4,577,984

 

Series C, 5.75%, 7/01/19 (k)

 

 

5

 

 

5,734

 

Series M, 6%, 7/01/20

 

 

1,000

 

 

1,059,300

 

Series M, 6.25%, 7/01/21

 

 

1,000

 

 

1,077,220

 

Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.70%, 2/01/10 (a)

 

 

7,500

 

 

7,841,625

 

 

 

 

 

 

 

15,603,922

 

U.S. Virgin Islands—3.1%

 

 

 

 

 

 

 

Virgin Islands Public Finance Authority, Senior Lien Revenue Bonds (Matching Fund Loan Note), Series A,:

 

 

 

 

 

 

 

5.25%, 10/01/17

 

 

360

 

 

363,596

 

5.25%, 10/01/19

 

 

455

 

 

455,200

 

5.25%, 10/01/21

 

 

460

 

 

454,774

 

5.25%, 10/01/22

 

 

315

 

 

309,702

 

5.25%, 10/01/23

 

 

960

 

 

942,144

 

5.25%, 10/01/24

 

 

300

 

 

293,718

 

 

 

 

 

 

 

2,819,134

 

Total Municipal Bonds (Cost—$141,725,042)—154.0%

 

 

 

 

 

141,481,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

 

 

 

 

 

 

San Manuel Entertainment Authority Series 04-C, 4.50%, 12/01/16 (h)

 

 

4,000

 

 

3,787,520

 

Total Corporate Bonds (Cost—$4,000,000)—4.1%

 

 

 

 

 

3,787,520

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

33

 


Schedule of Investments (concluded)

BlackRock California Municipal 2018 Term Trust (BJZ)

 

(Percentages shown are based on Net Assets)

 

Short-Term Securities

 

Shares

 

 

Value

 

CMA California Municipal Money Fund, 1.28% (l)(m)

 

726,393

 

$

726,393

 

Total Short-Term Securities (Cost—$726,393)—0.8%

 

 

 

 

726,393

 

Total Investments (Cost—$146,451,435*)—158.9%

 

 

 

 

145,995,098

 

Other Assets Less Liabilities—1.6%

 

 

 

 

1,463,802

 

Preferred Shares, at Redemption Value—(60.5)%

 

 

 

 

(55,552,931

)

Net Assets Applicable to Common Shares—100.0%

 

 

 

$

91,905,969

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

146,451,170

 

Gross unrealized appreciation

 

$

2,034,199

 

Gross unrealized depreciation

 

 

(2,490,271

)

Net unrealized depreciation

 

$

(456,072)

 

 

(a)

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

(b)

When-issued security.

(c)

MBIA Insured.

(d)

FGIC Insured.

(e)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(f)

FSA Insured.

(g)

AMBAC Insured.

(h)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are considered to be liquid.

(i)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(j)

Commonwealth Guaranteed.

(k)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(l)

Represents the current yield as of report date.

(m)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

Affiliate

 

Net
Activity

 

 

Dividend
Income

 

CMA California Municipal Money Fund

 

(3,583,900

)

$

27,952

 

 

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements.

Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

 

Investments in
Securities

 

Level 1

 

$

726,393

 

Level 2

 

 

145,268,705

 

Level 3

 

 

 

Total

 

$

145,995,098

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

34

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida—60.6%

 

 

 

 

 

 

 

Alachua County, Florida, School District, GO, Refunding, 4.25%, 1/01/09 (a)

 

$

1,500

 

$

1,518,540

 

Collier County, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Cleveland Clinic Health Systems), VRDN, Series C-1, 1.55%, 1/01/35 (b)

 

 

550

 

 

550,000

 

Dade County, Florida, Special Obligation Revenue Refunding Bonds, CABS, Series B (c)(d):

 

 

 

 

 

 

 

5.695%, 10/01/08 (e)

 

 

905

 

 

899,832

 

5.695%, 10/01/08

 

 

1,095

 

 

1,088,156

 

Florida Municipal Loan Council Revenue Bonds, Series C, 3.50%, 11/01/08 (f)

 

 

1,090

 

 

1,094,502

 

Florida State Board of Education, Lottery Revenue Bonds, Series A, 5%, 7/01/08 (g)

 

 

4,190

 

 

4,190,335

 

Florida State Department of Environmental Protection, Preservation Revenue Bonds, Series B, 4%, 7/01/08 (g)

 

 

5,905

 

 

5,905,295

 

Florida State Turnpike Authority, Turnpike Revenue Bonds, Series B, 5.50%, 7/01/08 (f)

 

 

2,530

 

 

2,530,253

 

Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue Refunding Bonds, Series C, 3.50%, 10/01/08 (f)

 

 

6,000

 

 

6,018,540

 

Hillsborough County, Florida, Utility Revenue Refunding Bonds, Junior Lien, 4.50%, 8/01/08 (c)

 

 

10,000

 

 

10,022,300

 

Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, Series A, 4.25%, 10/01/08 (c)

 

 

5,895

 

 

5,925,065

 

Jacksonville, Florida, Sales Tax Revenue Bonds, 4.10%, 10/01/08 (c)

 

 

2,000

 

 

2,010,760

 

Jacksonville, Florida, Sales Tax Revenue Refunding Bonds, 3.125%, 10/01/08 (g)

 

 

1,155

 

 

1,158,338

 

Lakeland, Florida, Electric and Water Revenue Refunding Bonds, First Lien, Series B, 5.90%, 10/01/08 (a)

 

 

2,000

 

 

2,020,620

 

Miami, Florida, GO, Refunding, 5.90%, 12/01/08 (g)

 

 

1,345

 

 

1,364,704

 

Miami-Dade County, Florida, School Board, COP, Refunding, Series C, 5.25%, 8/01/11 (a)

 

 

4,775

 

 

4,836,216

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida—(concluded)

 

 

 

 

 

 

 

Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), VRDN (b):

 

 

 

 

 

 

 

1.66%, 10/01/15

 

$

700

 

$

700,000

 

Series A-1, 3.50%, 10/01/41 (a)

 

 

10,150

 

 

10,150,000

 

Series A-2, 1.30%, 10/01/41 (a)

 

 

770

 

 

770,000

 

Orange County, Florida, Tourist Development Tax, Revenue Refunding Bonds, Series A:

 

 

 

 

 

 

 

4%, 10/01/08 (c)

 

 

5,130

 

 

5,152,162

 

5.85%, 10/01/08 (e)(f)

 

 

1,005

 

 

1,015,382

 

5.85%, 10/01/08 (f)

 

 

495

 

 

499,212

 

Orlando, Florida, Waste Water System, Revenue Refunding Bonds, Series A, 3.25%, 10/01/08 (c)

 

 

1,100

 

 

1,103,773

 

Orlando-Orange County Expressway Authority, Florida, Expressway Revenue Refunding Bonds, VRDN, Series C-1, 1.55%, 7/01/25 (a)(b)

 

 

2,500

 

 

2,500,000

 

Osceola County, Florida, Infrastructure Sales Surplus Tax Revenue Bonds, 3.75%, 10/01/08 (c)

 

 

1,810

 

 

1,815,901

 

Saint Petersburg, Florida, Health Facilities Authority, Revenue Refunding Bonds (All Children’s Hospital), 3.10%, 11/15/08 (c)

 

 

500

 

 

501,695

 

Village Center Community Development District, Florida, Recreational Revenue Refunding Bonds, Series A, 5.50%, 11/01/08 (f)

 

 

1,370

 

 

1,386,481

 

Volusia County, Florida, Sales Tax Revenue Refunding Bonds, Subordinate Lien, Series B, 4%, 10/01/08 (f)

 

 

2,370

 

 

2,379,859

 

Total Municipal Bonds (Cost—$78,788,711)—60.6%

 

 

 

 

 

79,107,921

 

 

Short-Term Securities

 

 

 

 

 

 

 

U.S. Government Obligations

 

 

 

 

 

 

 

U.S. Treasury Notes, 3.375%, 11/15/08

 

 

50,200

 

 

50,439,253

 

Total Short-Term Securities (Cost—$50,249,021)—38.7%

 

 

 

 

 

50,439,253

 

Total Investments (Cost—$129,037,732*)—99.3%

 

 

 

 

 

129,547,174

 

Other Assets Less Liabilities—0.7%

 

 

 

 

 

952,396

 

Net Assets—100.0%

 

 

 

 

$

130,499,570

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

129,037,246

 

Gross unrealized appreciation

 

$

512,745

 

Gross unrealized depreciation

 

 

(2,817

)

Net unrealized appreciation

 

$

509,928

 

(a)

FSA Insured.

(b)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(c)

AMBAC Insured.

(d)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(e)

Security is collateralized by municipal or U.S. Treasury obligations.

(f)

MBIA Insured.

(g)

FGIC Insured.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

Investments in
Securities

 

Level 1

 

 

 

Level 2

 

$

129,547,174

 

Level 3

 

 

 

Total

 

$

129,547,174

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

35

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Florida Municipal 2020 Term Trust (BFO)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida—147.3%

 

 

 

 

 

 

 

Broward County, Florida, School Board, COP, Series A, 5.25%, 7/01/22 (a)

 

$

2,500

 

$

2,588,550

 

Crossings at Fleming Island Community Development District, Florida, Utility Revenue Bonds, 6.75%, 10/01/09 (b)

 

 

4,540

 

 

4,852,761

 

Deltona, Florida, Utility System Revenue Bonds, 5%, 10/01/23 (c)

 

 

1,095

 

 

1,105,994

 

Escambia County, Florida, Environmental Improvement Revenue Refunding Bonds (International Paper Company Projects), AMT, Series A, 5.75%, 11/01/27

 

 

4,000

 

 

3,623,120

 

Escambia County, Florida, Health Facilities Authority, Health Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95%, 7/01/20 (d)

 

 

566

 

 

594,030

 

Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, AMT, Series 2, 4.70%, 7/01/22 (e)(f)

 

 

2,445

 

 

2,322,139

 

Florida Municipal Loan Council Revenue Bonds, CABS, Series A, 5.03%, 4/01/20 (c)(g)

 

 

4,000

 

 

2,251,560

 

Florida State Board of Education, GO (Public Education Capital Outlay), Series J, 5%, 6/01/24 (d)

 

 

6,150

 

 

6,307,994

 

Halifax Hospital Medical Center, Florida, Hospital Revenue Refunding and Improvement Bonds, Series A, 5.25%, 6/01/26

 

 

2,500

 

 

2,371,900

 

Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health System), Series C, 5.25%, 11/15/36

 

 

1,500

 

 

1,435,965

 

Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee Moffitt Cancer Center Project), Series A, 5.25%, 7/01/22

 

 

1,500

 

 

1,506,405

 

Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project):

 

 

 

 

 

 

 

5.50%, 10/01/23 (m)

 

 

1,955

 

 

1,915,314

 

Series A, 5.65%, 5/15/18

 

 

1,000

 

 

990,390

 

Series B, 5.15%, 9/01/25

 

 

500

 

 

501,990

 

Hillsborough County, Florida, School Board, COP, 5%, 7/01/27 (c)

 

 

1,000

 

 

1,000,440

 

Jacksonville, Florida, HFA, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series A-1, 5.625%, 10/01/39 (e)(f)

 

 

1,000

 

 

977,090

 

Lakeland, Florida, Water and Wastewater Revenue Refunding Bonds, 5%, 10/01/27

 

 

1,000

 

 

1,010,600

 

Lee County, Florida, IDA, Health Care Facilities, Revenue Refunding Bonds (Shell Point/Alliance Obligor Group), 5%, 11/15/22

 

 

1,500

 

 

1,343,430

 

Lee County, Florida, Transportation Facilities Revenue Refunding Bonds, Series B, 5%, 10/01/22 (d)

 

 

3,000

 

 

3,070,890

 

Marco Island, Florida, Utility System Revenue Bonds (c):

 

 

 

 

 

 

 

5.25%, 10/01/21

 

 

1,000

 

 

1,048,970

 

5%, 10/01/22

 

 

2,000

 

 

2,055,600

 

5%, 10/01/23

 

 

1,375

 

 

1,409,334

 

Marion County, Florida, Hospital District, Revenue Refunding Bonds (Munroe Regional Health System), 5%, 10/01/22

 

 

1,500

 

 

1,474,380

 

Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Mount Sinai Medical Center of Florida), 6.75%, 11/15/21

 

 

2,500

 

 

2,554,150

 

Miami-Dade County, Florida, Educational Facilities Authority Revenue Bonds (University of Miami), Series A, 5.0%, 4/01/14 (b)(d)

 

 

4,695

 

 

5,034,824

 

Miami-Dade County, Florida, School Board, COP, Refunding, Series B, 5.25%, 5/01/21

 

 

4,000

 

 

4,171,400

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida—(concluded)

 

 

 

 

 

 

 

Miami-Dade County, Florida, Special Obligation Revenue Bonds, Sub-Series B, 5.62%, 10/01/32 (c)(g)

 

$

7,560

 

$

1,979,359

 

Miami-Dade County, Florida, Special Obligation Revenue Refunding Bonds, Sub-Series A (c)(g):

 

 

 

 

 

 

 

5.24%, 10/01/19

 

 

5,365

 

 

3,015,076

 

5.28%, 10/01/20

 

 

10,000

 

 

5,313,600

 

Northern Palm Beach County Improvement District, Florida, Water Control and Improvement Revenue Bonds (Unit of Development Number 43):

 

 

 

 

 

 

 

6.10%, 8/01/11 (b)

 

 

2,735

 

 

2,944,747

 

6.10%, 8/01/21

 

 

550

 

 

551,540

 

Northern Palm Beach County Improvement District, Florida, Water Control and Improvement, Revenue Refunding Bonds (Unit of Development Number 43), Series B (h):

 

 

 

 

 

 

 

4.50%, 8/01/22

 

 

1,000

 

 

834,310

 

5%, 8/01/31

 

 

1,000

 

 

812,670

 

Orange County, Florida, Educational Facilities Authority, Educational Facilities Revenue Bonds (Rollins College Project), 5.25%, 12/01/22 (d)

 

 

725

 

 

747,794

 

Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds:

 

 

 

 

 

 

 

(Adventist Health System), 5.625%, 11/15/12 (b)

 

 

4,450

 

 

4,871,415

 

(Orlando Regional Healthcare), VRDN, Series A-1, 3.50%, 10/01/41 (a)(i)

 

 

200

 

 

200,000

 

(Orlando Regional Healthcare), VRDN, Series A-2, 1.30%, 10/01/41 (a)(i)

 

 

1,000

 

 

1,000,000

 

Palm Coast, Florida, Utility System Revenue Bonds (c):

 

 

 

 

 

 

 

5%, 10/01/22

 

 

1,770

 

 

1,814,197

 

5%, 10/01/23

 

 

1,485

 

 

1,517,893

 

5%, 10/01/24

 

 

1,500

 

 

1,530,420

 

Sterling Hill Community Development District, Florida, Capital Improvement Revenue Refunding Bonds, Series A, 6.10%, 5/01/23

 

 

4,285

 

 

4,286,628

 

Stevens Plantation Improvement Project Dependent Special District, Florida, Revenue Bonds, 6.375%, 5/01/13

 

 

2,445

 

 

2,386,809

 

Sumter County, Florida, IDA, IDR (North Sumter Utility Company LLC), AMT, 6.80%, 10/01/32

 

 

1,185

 

 

1,185,818

 

Tohopekaliga, Florida, Water Authority, Utility System Revenue Bonds, Series B (a):

 

 

 

 

 

 

 

5%, 10/01/22

 

 

1,975

 

 

2,029,905

 

5%, 10/01/23

 

 

1,180

 

 

1,209,465

 

Tohopekaliga, Florida, Water Authority, Utility System Revenue Refunding Bonds, Series A (a):

 

 

 

 

 

 

 

5%, 10/01/21

 

 

3,630

 

 

3,727,502

 

5%, 10/01/22

 

 

3,810

 

 

3,915,918

 

5%, 10/01/23

 

 

2,000

 

 

2,049,940

 

Tolomato Community Development District, Florida, Special Assessment Bonds, 6.375%, 5/01/17

 

 

1,300

 

 

1,281,358

 

Village Center Community Development District, Florida, Recreational Revenue Bonds, Sub-Series A, 6.35%, 1/01/18

 

 

2,000

 

 

2,052,140

 

Village Center Community Development District, Florida, Utility Revenue Bonds, 5.25%, 10/01/23 (c)

 

 

5,000

 

 

5,207,600

 

Village Community Development District Number 5, Florida, Special Assessment Bonds, Series A, 6%, 5/01/22

 

 

1,425

 

 

1,435,303

 

Watergrass Community Development District, Florida, Special Assessment Revenue Bonds, Series B, 5.125%, 11/01/14

 

 

1,000

 

 

897,680

 

 

 

 

 

 

 

116,318,307

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

36

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


 

Schedule of Investments (concluded)

BlackRock Florida Municipal 2020 Term Trust (BFO)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

U.S. Virgin Islands—1.6%

 

 

 

 

 

 

 

Virgin Islands Public Finance Authority, Refinery Facilities Revenue Bonds (Hovensa Refinery), AMT, 4.70%, 7/01/22

 

$

1,500

 

$

1,270,920

 

Total Municipal Bonds (Cost—$117,973,145)—148.9%

 

 

 

 

 

117,589,227

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (j)

 

 

 

 

 

 

 

Manatee County, Florida, Series A, Finance Authority, Homeowner Revenue, Series A, 5.90%, 9/01/40 (e)(f)

 

 

1,000

 

 

987,694

 

Lee County, Florida, HFA, S/F Mortgage Revenue Bonds, Munlti County Series A-2, 6%, 9/01/40 9 (e)(f)

 

 

1,500

 

 

1,527,840

 

Palm Beach County Florida, School Baord, COP, Revenue Refunding Bonds, Series D, 5%, 8/01/28 (a)

 

 

6,500

 

 

6,545,545

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts (Cost—$9,285,749)—11.5%

 

 

 

 

 

9,061,079

 

 

Short-Term Securities

 

Shares

 

Value

 

CMA Florida Municipal Money Fund, 1.13% (k)(l)

 

 

2,542

 

$

2,542

 

Total Short-Term Securities (Cost—$2,542)—0.0%

 

 

 

 

 

2,542

 

Total Investments (Cost—$ 127,261,436*)—160.4%

 

 

 

 

 

126,652,848

 

Other Assets, Less Liabilities—1.6%

 

 

 

 

 

1,243,661

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable—(7.6)%

 

 

 

 

 

(6,019,756

)

Preferred Shares, at Redemption Value—(54.4)%

 

 

 

 

 

(42,903,071

)

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

78,973,682

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

121,180,511

 

Gross unrealized appreciation

 

$

1,608,381

 

Gross unrealized depreciation

 

 

(2,146,044

)

Net unrealized depreciation

 

$

(537,663

)

(a)

FSA Insured.

(b)

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

(c)

MBIA Insured.

(d)

AMBAC Insured.

(e)

FHLMC Collateralized.

(f)

FNMA/GNMA Collateralized.

(g)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(h)

ACA Insured.

(i)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(j)

Securities represent bonds transferred to a tender option bond trust, in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(k)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

Affiliate

 

Net
Activity

 

Dividend
Income

 

CMA Florida Municipal Money Fund

 

 

2,080

 

$

2,078

 

(l)

Represents the current yield as of report date.

(m)

When-issued security.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

Investments in
Securities

 

Level 1

 

$

2,542

 

Level 2

 

 

126,650,306

 

Level 3

 

 

 

Total

 

$

126,652,848

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

37

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York—58.8%

 

 

 

 

 

 

 

Babylon, New York, IDA Residential Recovery Revenue Refunding Bonds (Ogden Martin Project), VRDN, 1.50%, 1/01/19 (a)(b)

 

$

4,440

 

$

4,440,000

 

Erie County, New York, Public Improvement, GO, Series A, 3.75%, 10/01/08 (c)

 

 

1,000

 

 

1,002,980

 

Evans-Brant Central School District, New York, GO, Refunding, Series C, 3.75%, 12/15/08 (c)

 

 

1,185

 

 

1,195,215

 

Long Island Power Authority, New York, Electric System Revenue Bonds, VRDN (a)(b):

 

 

 

 

 

 

 

Series E, 1.35%, 12/01/29

 

 

2,900

 

 

2,900,000

 

Series G, 1.40%, 12/01/29

 

 

2,275

 

 

2,275,000

 

Series H, 1.60%, 12/01/29

 

 

1,300

 

 

1,300,000

 

Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Refunding Bonds, Series A, 6.10%, 7/01/08 (d)(e)

 

 

2,500

 

 

2,500,300

 

Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Revenue Refunding Bonds, VRDN, Series B, 1.45%, 11/01/22 (a)(b)

 

 

8,900

 

 

8,900,000

 

Metropolitan Transportation Authority, New York, Revenue Refunding Bonds, VRDN, Series D-2, 1.40%, 11/01/32 (a)(b)

 

 

1,275

 

 

1,275,000

 

Metropolitan Transportation Authority, New York, Transit Facilities Revenue Refunding Bonds, Series K, 6%, 7/01/08 (d)(e)

 

 

26,075

 

 

26,078,129

 

Nassau County, New York, IDA, Civic Facility Revenue Refunding and Improvement Bonds (Cold Spring Harbor), VRDN, 1.45%, 1/01/34 (b)

 

 

500

 

 

500,000

 

Nassau County, New York, Interim Financing Authority, Sales Tax Secured Revenue Bonds, Series A, 2.35%, 11/15/08 (d)

 

 

250

 

 

250,525

 

New York City, New York, GO:

 

 

 

 

 

 

 

Series C, 4.75%, 8/15/08 (f)(g)

 

 

2,455

 

 

2,488,830

 

Sub-Series C-1, 6.375%, 8/01/08 (d)

 

 

50

 

 

50,171

 

Sub-Series C-1, 6.25%, 8/01/10 (a)

 

 

45

 

 

45,145

 

New York City, New York, GO, Refunding:

 

 

 

 

 

 

 

Series A, 5.20%, 8/01/10 (a)

 

 

1,000

 

 

1,012,150

 

Series E, 6.20%, 8/01/08 (d)

 

 

4,895

 

 

4,912,034

 

Series E, 6.20%, 8/01/08 (d)(e)

 

 

2,000

 

 

2,007,720

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York—(concluded)

 

 

 

 

 

 

 

New York City, New York, GO, Refunding, VRDN, Series H, Sub-Series H-3 (a)(b):

 

 

 

 

 

 

 

1.35%, 8/01/19

 

$

1,300

 

$

1,300,000

 

1.35%, 8/01/20

 

 

4,705

 

 

4,705,000

 

1.35%, 8/01/22

 

 

2,900

 

 

2,900,000

 

New York State Dormitory Authority, Mental Health Facilities Improvement Revenue Refunding Bonds, VRDN, Series F-2B, 1.50%, 2/15/21 (a)(b)

 

 

4,900

 

 

4,900,000

 

New York State Dormitory Authority, Mental Health Services Revenue Bonds, VRDN, Sub-Series D-2B, 1.25%, 2/15/31 (a)(b)

 

 

9,925

 

 

9,925,000

 

New York State Dormitory Authority, Nursing Home Revenue Bonds (W.K. Nursing Home Corporation), 5.65%, 8/01/09 (h)

 

 

500

 

 

501,600

 

New York State Dormitory Authority, Revenue Refunding Bonds (Winthrop University Hospital Association), Series A, 4.125%, 7/01/08 (i)

 

 

1,000

 

 

1,000,050

 

New York State, GO, Refunding, Series F, 5.50%, 9/15/08 (i)

 

 

1,000

 

 

1,007,790

 

New York State, HFA, Mortgage Revenue Refunding Bonds (Housing Project), Series A (a):

 

 

 

 

 

 

 

5.80%, 5/01/09

 

 

750

 

 

752,182

 

5.80%, 11/01/09

 

 

3,995

 

 

4,006,266

 

New York State Local Government Assistance Corporation, Revenue Refunding Bonds, Sub-Lien, VRDN (a)(b):

 

 

 

 

 

 

 

Series A-4V, 1.45%, 4/01/22

 

 

1,550

 

 

1,550,000

 

Series A-5V, 1.45%, 4/01/20

 

 

2,550

 

 

2,550,000

 

New York State Urban Development Corporation, Correctional Capital Facilities, Revenue Refunding Bonds, Series A, 5.50%, 1/01/09 (i)

 

 

2,000

 

 

2,037,180

 

Total Municipal Bonds (Cost—$100,135,738)—58.8%

 

 

 

 

 

100,268,267

 

 

Short-Term Securities

 

 

 

 

 

 

 

U.S. Government Obligations

 

 

 

 

 

 

 

Fannie Mae, 3.04%, 10/20/08

 

 

66,018

 

 

65,407,334

 

Total Short-Term Securities (Cost—$ 65,407,334)—38.3%

 

 

 

 

 

65,407,334

 

Total Investments (Cost—$165,543,072*)—97.1%

 

 

 

 

 

165,675,601

 

Other Assets Less Liabilities—2.9%

 

 

 

 

 

4,990,546

 

Net Assets—100.0%

 

 

 

 

$

170,666,147

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

38

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments (concluded)

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

165,415,216

 

Gross unrealized appreciation

 

$

261,979

 

Gross unrealized depreciation

 

 

(1,594

)

Net unrealized appreciation

 

$

260,385

 

(a)

FSA Insured.

(b)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(c)

FGIC Insured.

(d)

MBIA Insured.

(e)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(f)

XL Capital Insured.

(g)

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

(h)

FHA Insured.

(i)

AMBAC Insured.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

Investments in
Securities

 

Level 1

 

 

 

Level 2

 

$

165,675,601

 

Level 3

 

 

 

Total

 

$

165,675,601

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

39

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock New York Municipal 2018 Term Trust (BLH)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

New York—127.8%

 

 

 

 

 

 

 

Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series A, 7%, 5/01/25

 

$

450

 

$

353,803

 

East Rochester, New York, Housing Authority, Revenue Refunding Bonds (Genesee Valley Presbyterian Nursing Center Project), 5.20%, 12/20/24 (a)(b)

 

 

1,320

 

 

1,359,402

 

Jefferson County, New York, IDA, Solid Waste Disposal, Revenue Refunding Bonds (International Paper Company), AMT, Series A, 5.20%, 12/01/20

 

 

2,450

 

 

2,227,564

 

Long Island Power Authority, New York, Electric System Revenue Bonds, CABS, 0%, 6/01/18 (c)

 

 

1,900

 

 

1,229,775

 

Metropolitan Transportation Authority, New York, Revenue Refunding Bonds, Series A, 5.125%, 11/15/21 (d)

 

 

5,000

 

 

5,054,100

 

New York City, New York, City IDA, Special Facility Revenue Bonds (American Airlines, Inc. - JFK International Airport), AMT, 7.50%, 8/01/16

 

 

1,000

 

 

915,000

 

New York City, New York, City Transitional Finance Authority:

 

 

 

 

 

 

 

(Building Aid Revenue Refunding Bonds), Series S-1, 5%, 1/15/23

 

 

1,400

 

 

1,437,352

 

(Future Tax Secured Revenue Bonds), Series C, 5%, 5/01/09 (e)

 

 

1,895

 

 

1,965,570

 

(Future Tax Secured, Revenue Refunding Bonds), Series B, 5%, 5/01/18

 

 

3,000

 

 

3,104,880

 

New York City, New York, GO, Refunding Series G:

 

 

 

 

 

 

 

5.75%, 8/01/12 (e)

 

 

1,890

 

 

2,074,464

 

5.75%, 8/01/18

 

 

3,110

 

 

3,322,848

 

New York City, New York, GO, Series B:

 

 

 

 

 

 

 

5.375%, 12/01/11 (e)

 

 

3,475

 

 

3,738,405

 

5.375%, 12/01/20

 

 

525

 

 

549,969

 

New York City, New York, IDA, Civic Facility Revenue Bonds (YMCA of Greater New York Project), 5.25%, 8/01/21

 

 

4,000

 

 

4,056,120

 

New York Liberty Development Corporation Revenue Bonds (National Sports Museum Project), Series A, 6.125%, 2/15/19

 

 

525

 

 

517,477

 

New York State Dormitory Authority, City University System Revenue Bonds, Consolidated 4th Generation, Series A, 5.125%, 7/01/11 (e)

 

 

1,800

 

 

1,911,708

 

New York State Dormitory Authority Revenue Bonds: (Mental Health Services Facilities), Series B, 5.50%, 8/15/11 (e)(f)

 

 

1,030

 

 

1,106,900

 

(Willow Towers Inc. Project), 5.25%, 2/01/22 (b)

 

 

1,000

 

 

1,038,280

 

New York State Dormitory Authority, Revenue Refunding Bonds (Brooklyn Law School), Series A, 5.50%, 7/01/18 (g)

 

 

1,000

 

 

1,021,000

 

New York State Dormitory Authority, State Supported Debt Revenue Bonds (Mental Health Services Facilities):

 

 

 

 

 

 

 

Series A, 5%, 2/15/18

 

 

295

 

 

298,770

 

Series B, 5.50%, 8/15/11 (e)(f)

 

 

1,560

 

 

1,676,470

 

Series B, 5.50%, 8/15/20 (f)

 

 

30

 

 

32,202

 

New York State Dormitory Authority, State Supported Debt, Revenue Refunding Bonds (Upstate Community Colleges), Series A:

 

 

 

 

 

 

 

5%, 7/01/09 (e)

 

 

1,170

 

 

1,218,298

 

5%, 7/01/19

 

 

2,060

 

 

2,094,649

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

New York—(concluded)

 

 

 

 

 

 

 

Niagara County, New York, IDA, Civic Facility Revenue Refunding Bonds (Niagara University Project), Series A, 5.35%, 11/01/23 (g)

 

$

4,180

 

$

4,194,087

 

Oneida, New York, Health Care Corporation, Revenue Refunding Bonds (Residential Health Care Project), 5.30%, 2/01/21 (g)

 

 

4,130

 

 

4,141,440

 

Orange County, New York, IDA, Civic Facility Revenue Refunding Bonds (Saint Lukes Hospital - Newburgh, New York Project), Series A, 5.375%, 12/01/21 (g)

 

 

3,875

 

 

3,896,739

 

Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 126th Series, 5%, 11/15/18 (d)

 

 

3,885

 

 

3,910,913

 

Port Authority of New York and New Jersey, Special Obligation Revenue Bonds (Continental Airlines, Inc. - LaGuardia Project), AMT, 9.125%, 12/01/15

 

 

2,475

 

 

2,506,185

 

Rockland Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Revenue Bonds, 5.625%, 8/15/35

 

 

4,000

 

 

3,883,320

 

TSASC, Inc., New York, TFABS, Series 1, 5.75%, 7/15/12 (e)

 

 

3,000

 

 

3,269,760

 

Westchester County, New York, IDA, Civic Facility Revenue Bonds (Purchase College Foundation), Series A, 5.125%, 12/01/22 (h)

 

 

3,710

 

 

3,816,700

 

 

 

 

 

 

 

71,924,150

 

Multi-State—7.3%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 6.625%, 6/30/49 (i)(j)

 

 

4,000

 

 

4,136,680

 

Puerto Rico—11.7%

 

 

 

 

 

 

 

Children’s Trust Fund Project of Puerto Rico, Tobacco Settlement Revenue Refunding Bonds, 5.625%, 5/15/43

 

 

2,000

 

 

1,899,120

 

Puerto Rico Electric Power Authority, Power Revenue Bonds, Series WW, 5.50%, 7/01/21

 

 

2,000

 

 

2,077,160

 

Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.70%, 2/01/10 (e)

 

 

2,500

 

 

2,613,875

 

 

 

 

 

 

 

6,590,155

 

Total Municipal Bonds (Cost—$80,223,811)—146.8%

 

 

 

 

 

82,650,985

 

 

Short-Term Securities

 

 

Shares

 

 

 

 

CMA New York Municipal Money Fund, 1.06% (k)(l)

 

 

5,465,412

 

 

5,465,412

 

Total Short-Term Securities (Cost—$5,465,412)—9.7%

 

 

 

 

 

5,465,412

 

Total Investments (Cost—$ 85,689,223*)—156.5%

 

 

 

 

 

88,116,397

 

Liabilities in Excess of Other Assets—(0.7)%

 

 

 

 

 

(396,144)

 

Preferred Shares, at Redemption Value—(55.8)%

 

 

 

 

 

(31,413,255)

 

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

56,306,998

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

40

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments (concluded)

BlackRock New York Municipal 2018 Term Trust (BLH)

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

85,678,698

 

Gross unrealized appreciation

 

$

2,901,438

 

Gross unrealized depreciation

 

 

(463,739)

 

Net unrealized appreciation

 

$

2,437,699

 

(a)

FHA Insured.

(b)

GNMA Collateralized.

(c)

FSA Insured.

(d)

FGIC Insured.

(e)

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

(f)

MBIA Insured.

(g)

Radian Insured.

(h)

AMBAC Insured.

(i)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are considered to be liquid.

(j)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(k)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

Affiliate

 

Net
Activity

 

 

Dividend
Income

 

CMA New York Municipal Money Fund

 

5,155,884

 

$

56,886

 

(l)

Represents the current yield as of report date.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

 

Investments in
Securities

 

Level 1

 

$

5,465,412

 

Level 2

 

 

82,650,985

 

Level 3

 

 

 

Total

 

$

88,116,397

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

41

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

Pennsylvania—103.8%

 

 

 

 

 

 

 

Allegheny County, Pennsylvania, Hospital Development Authority, Revenue Refunding Bonds (West Penn Allegheny Health System), Series A, 5.375%, 11/15/40

 

$

470

 

$

387,491

 

Allegheny County, Pennsylvania, Port Authority, Special Transportation Revenue Bonds, 6.125%, 3/01/09 (a)(b)

 

 

1,000

 

 

1,038,710

 

Bucks County, Pennsylvania, IDA, Revenue Refunding Bonds (Pennswood Village Project), Series A, 6%,
10/01/12 (b)

 

 

1,400

 

 

1,550,346

 

Catasauqua, Pennsylvania, Area School District, GO, Refunding, 5%, 2/15/31 (c)

 

 

1,000

 

 

1,013,870

 

Chester County, Pennsylvania, IDA, Water Facilities Revenue Bonds (Aqua Pennsylvania, Inc. Project), AMT, Series A, 5%, 2/01/40 (d)

 

 

2,000

 

 

1,769,360

 

Delaware County, Pennsylvania, Health Facilities Authority Revenue Bonds (Mercy Health Corporation Project), 6%, 12/15/26 (e)

 

 

1,500

 

 

1,596,840

 

Delaware County, Pennsylvania, IDA, Water Facilities Revenue Bonds (Philadelphia Suburban Water), 6%,
6/01/29 (d)

 

 

1,250

 

 

1,255,987

 

Lancaster County, Pennsylvania, Hospital Authority Revenue Bonds (Masonic Homes Project), 5%, 11/01/36

 

 

1,000

 

 

909,910

 

Lancaster, Pennsylvania, Higher Education Authority, College Revenue Bonds (Franklin & Marshall College Project), 5%, 4/15/37

 

 

500

 

 

490,240

 

McKeesport, Pennsylvania, Area School District, GO, Refunding, Series A, 5%, 10/01/24 (c)

 

 

1,000

 

 

1,030,580

 

Mifflin County, Pennsylvania, School District, GO, 7.50%, 9/01/22 (f)

 

 

200

 

 

237,614

 

Monroe County, Pennsylvania, Hospital Authority Revenue Refunding Bonds (Pocono Medical Center), 5.125%, 1/01/37

 

 

345

 

 

305,729

 

Montgomery County, Pennsylvania, IDA, Retirement Community Revenue Bonds (ACTS Retirement - Life Communities Inc.), 5.25%, 11/15/28

 

 

1,250

 

 

1,198,613

 

Montgomery County, Pennsylvania, IDA, Water Facilities Revenue Bonds (Aqua Pennsylvania, Inc. Project), Series A, 5.25%, 7/01/42

 

 

300

 

 

279,990

 

Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds (Amtrak Project), AMT, Series A:

 

 

 

 

 

 

 

6.25%, 11/01/31

 

 

1,000

 

 

1,000,230

 

6.375%, 11/01/41

 

 

1,000

 

 

1,010,020

 

Pennsylvania Economic Development Financing Authority, Resource Recovery Revenue Refunding Bonds (Colver Project), Series G, 5.125%, 12/01/15

 

 

1,000

 

 

942,450

 

Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT, Series 95A, 4.90%, 10/01/37

 

 

1,000

 

 

910,440

 

Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT:

 

 

 

 

 

 

 

Series 96A, 4.70%, 10/01/37

 

 

495

 

 

421,166

 

Series 97A, 4.65%, 10/01/31

 

 

1,300

 

 

1,143,181

 

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (Lafayette College Project), 6%, 5/01/30

 

 

1,250

 

 

1,296,000

 

Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Bonds, Series C, 5%, 12/01/32 (a)

 

 

1,000

 

 

1,008,040

 

Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Refunding Bonds, Series A, 5%,
12/01/23 (g)

 

 

1,070

 

 

1,099,553

 

Pennsylvania State University, Revenue Refunding Bonds, Series A, 5%, 8/15/28

 

 

575

 

 

588,650

 

Philadelphia, Pennsylvania, Airport Revenue Bonds, AMT, Series A, 5%, 6/15/37 (c)

 

 

1,150

 

 

1,081,392

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

Pennsylvania—(concluded)

 

 

 

 

 

 

 

Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities Authority, Hospital Revenue Refunding Bonds (Temple University Health System), Series A, 5.50%, 7/01/30

 

$

465

 

$

432,515

 

Philadelphia, Pennsylvania, School District, GO, Refunding, Series A, 5%, 8/01/15 (g)

 

 

1,000

 

 

1,058,040

 

Philadelphia, Pennsylvania, School District, GO, Series C, 5.75%, 3/01/10 (a)(b)

 

 

1,550

 

 

1,629,050

 

Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series A, 5%, 7/01/27 (c)

 

 

520

 

 

529,214

 

Susquehanna Area Regional Airport Authority, Pennsylvania, Airport System Revenue Bonds, AMT, Series A, 6.50%, 1/01/38

 

 

185

 

 

181,082

 

Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds (Capital Projects and Equipment Program), 6.15%, 12/01/29 (g)

 

 

120

 

 

119,273

 

Wilkes-Barre, Pennsylvania, Financing Authority, Revenue Refunding Bonds (Wilkes University Project), 5%, 3/01/37

 

 

700

 

 

616,826

 

 

 

 

 

 

 

28,132,402

 

Puerto Rico—22.7%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Aqueduct and Sewer Authority, Senior Lien Revenue Bonds, Series A, 6%, 7/01/38

 

 

200

 

 

209,024

 

Puerto Rico Commonwealth, GO, Refunding, Sub-Series C-7, 6%, 7/01/27 (a)(m)

 

 

1,385

 

 

1,447,491

 

Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.25%, 7/01/37

 

 

1,000

 

 

967,480

 

Puerto Rico Electric Power Authority, Power Revenue Bonds, Series WW, 5.50%, 7/01/38

 

 

500

 

 

509,240

 

Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Revenue Bonds (Ana G. Mendez University System Project), 5%, 3/01/26

 

 

1,250

 

 

1,135,125

 

Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series N, 5%, 7/01/37

 

 

300

 

 

288,030

 

Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.50%, 2/01/12 (b)

 

 

1,495

 

 

1,587,795

 

 

 

 

 

 

 

6,144,185

 

Multi-State—15.1%

 

 

 

 

 

 

 

MuniMae TE Bond Subsidiary LLC, 6.875%, 6/30/49 (h)(i)

 

 

4,000

 

 

4,109,000

 

Total Municipal Bonds (Cost—$39,136,734)—141.6%

 

 

 

 

 

38,385,587

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (j)

 

 

 

 

 

 

 

Scranton, Pennsylvania, School District, GO, Series A, 5%, 7/1/38 (c)

 

 

1,000

 

 

1,011,655

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts (Cost—$1,004,724)—3.7%

 

 

 

 

 

1,011,655

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

Shares

 

 

 

 

CMA Pennsylvania Municipal Money Fund, 1.02% (k)(l)

 

 

6,165,049

 

 

6,165,049

 

Total Short-Term Securities (Cost—$6,165,049)—22.8%

 

 

 

 

 

6,165,049

 

Total Investments (Cost—$46,306,507*)—168.1%

 

 

 

 

 

45,562,291

 

Liabilities in Excess of Other Assets—(3.5)%

 

 

 

 

 

(961,070

)

Liability for Trust Certificates, Including Interest Expense and Fees Payable—(2.5)%

 

 

 

 

 

(670,325

)

Preferred Shares, at Redemption Value—(62.1)%

 

 

 

 

 

(16,830,997

)

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

27,099,899

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

42

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments (concluded)

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

45,480,690

 

Gross unrealized appreciation

 

$

918,661

 

Gross unrealized depreciation

 

 

(1,506,147

)

Net unrealized depreciation

 

$

(587,486)

 

(a)

MBIA Insured.

(b)

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

(c)

FSA Insured.

(d)

FGIC Insured.

(e)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(f)

XL Capital Insured.

(g)

AMBAC Insured.

(h)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are considered to be liquid.

(i)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(j)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(k)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

Affiliate

 

Net
Activity

 

 

Dividend
Income

 

CMA Pennsylvania Municipal Money Fund

 

4,828,065

 

$

28,789

 

(l)

Represents the current yield as of report date.

(m)

When-issued security.

Swaps outstanding as of June 30, 2008 were as follows:

 

 

 

Notional
Amount
(000)

 

Unrealized
Appreciation

 

Pay a fixed rate of 3.378% and receive a floating rate based on 1-week Securities Industry and Financial Markets Association Municipal Swap Index rate

 

 

 

 

 

 

Broker, JPMorgan Chase

 

 

 

 

 

 

Expires August 2018

$

1,600

 

$

13,427

 

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements.

Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

 

Investments in
Securities

 

Other Financial
Instruments*

 

Level 1

 

$

6,165,049

 

 

 

Level 2

 

 

39,397,242

 

$

13,427

 

Level 3

 

 

 

 

 

Total

 

$

45,562,291

 

$

13,427

 

*

Other financial instruments are swaps.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

43

 


Statements of Assets and Liabilities

 

 

June 30, 2008 (Unaudited)

 

BlackRock
Insured
Municipal
2008 Term Trust
(BRM)

 

BlackRock
Insured
Municipal
Term Trust
(BMT)

 

BlackRock
Municipal
2018 Term Trust
(BPK)

 

BlackRock
Municipal
2020 Term Trust
(BKK)

 

BlackRock
Strategic
Municipal Trust
(BSD)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at value – unaffiliated1

 

$

411,285,271

 

$

311,763,993

 

$

358,814,086

 

$

459,699,407

 

$

156,981,047

 

Investments at value – affiliated2

 

 

 

 

 

 

6,110,145

 

 

 

 

1,100,933

 

Cash

 

 

105,502

 

 

2,783,949

 

 

87,941

 

 

 

 

18,227

 

Unrealized appreciation on forward interest rate swaps

 

 

 

 

 

 

 

 

 

 

51,803

 

Investments sold receivable

 

 

 

 

361,645

 

 

312,320

 

 

312,320

 

 

1,198

 

Interest receivable

 

 

1,783,793

 

 

2,954,811

 

 

4,475,545

 

 

5,562,956

 

 

2,034,579

 

Dividends receivable from affiliates

 

 

1,076

 

 

854

 

 

331

 

 

370

 

 

90

 

Prepaid expenses

 

 

49,688

 

 

39,745

 

 

45,714

 

 

57,969

 

 

20,240

 

Other assets

 

 

80,324

 

 

68,793

 

 

39,142

 

 

43,213

 

 

10,461

 

Total assets

 

 

413,305,654

 

 

317,973,790

 

 

369,885,224

 

 

465,676,235

 

 

160,218,578

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank overdraft

 

 

 

 

 

 

 

 

90,625

 

 

 

Unrealized depreciation on forward interest rate swaps

 

 

 

 

 

 

 

 

 

 

113,764

 

Investments purchased payable

 

 

 

 

 

 

5,079,264

 

 

5,078,950

 

 

1,121,946

 

Interest expense and fees payable

 

 

 

 

 

 

6,824

 

 

6,824

 

 

28,113

 

Income dividends payable

 

 

693,781

 

 

792,229

 

 

1,201,056

 

 

1,259,730

 

 

455,502

 

Investment advisory fees payable

 

 

118,188

 

 

95,609

 

 

118,925

 

 

189,142

 

 

69,184

 

Officer’s and Trustees’ fees payable

 

 

83,345

 

 

71,421

 

 

40,484

 

 

44,772

 

 

11,070

 

Administration fee payable

 

 

33,768

 

 

27,071

 

 

 

 

 

 

 

Other affiliates payable

 

 

 

 

 

 

3,102

 

 

3,759

 

 

1,288

 

Other accrued expenses payable

 

 

320,132

 

 

142,622

 

 

101,132

 

 

88,653

 

 

76,378

 

Total accrued liabilities

 

 

1,249,214

 

 

1,128,952

 

 

6,550,787

 

 

6,762,455

 

 

1,877,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust certificates3

 

 

 

 

 

 

3,750,000

 

 

3,750,000

 

 

14,249,279

 

Total Liabilities

 

 

1,249,214

 

 

1,128,952

 

 

10,300,787

 

 

10,512,455

 

 

16,126,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares at Redemption Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0.001 par value per share at $25,000 per share liquidation preference4

 

 

 

 

50,025,604

 

 

133,892,680

 

 

173,903,947

 

 

47,767,020

 

Net Assets Applicable to Common Shares

 

$

412,056,440

 

$

266,819,234

 

$

225,691,757

 

$

281,259,833

 

$

96,325,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders Consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par Value5

 

$

272,071

 

$

258,856

 

$

15,908

 

$

20,237

 

$

7,288

 

Paid-in capital in excess of par

 

 

377,589,494

 

 

239,251,319

 

 

225,641,716

 

 

287,166,281

 

 

103,369,503

 

Undistributed net investment income

 

 

30,367,775

 

 

16,902,197

 

 

15,394,069

 

 

2,080,249

 

 

353,609

 

Accumulated net realized gain (loss)

 

 

2,442,089

 

 

21,614

 

 

(14,332,455

)

 

(1,421,867

)

 

(3,915,865

)

Net unrealized appreciation/depreciation

 

 

1,385,011

 

 

10,385,248

 

 

(1,027,481

)

 

(6,585,067

)

 

(3,489,501

)

Net assets applicable to Common Shareholders

 

$

412,056,440

 

$

266,819,234

 

$

225,691,757

 

$

281,259,833

 

$

96,325,034

 

Net asset value per common share6

 

$

15.15

 

$

10.31

 

$

14.19

 

$

13.90

 

$

13.22

 

1 Investments at cost – unaffiliated

 

$

409,900,260

 

$

301,378,745

 

$

359,841,567

 

$

466,284,474

 

$

160,408,587

 

2 Investments at cost – affiliated

 

$

 

$

 

$

6,110,145

 

$

 

$

1,100,933

 

3 Represents short-term floating rate certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares outstanding

 

 

 

$

2,000

 

$

5,354

 

$

6,954

 

$

1,910

 

5 Par value per share

 

$

0.010

 

$

0.010

 

$

0.001

 

$

0.001

 

$

0.001

 

6 Common Shares outstanding

 

 

27,207,093

 

 

25,885,639

 

 

15,908,028

 

 

20,236,628

 

 

7,288,024

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

44

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


 

 

 

June 30, 2008 (Unaudited)

 

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)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at value – unaffiliated1

 

$

157,123,786

 

$

145,268,705

 

$

129,547,174

 

$

126,650,306

 

$

165,675,601

 

$

82,650,985

 

$

39,397,242

 

Investments at value – affiliated2

 

 

 

 

726,393

 

 

 

 

2,542

 

 

 

 

5,465,412

 

 

6,165,049

 

Cash

 

 

11,144

 

 

58,597

 

 

11,245

 

 

118,002

 

 

4,206,782

 

 

271,513

 

 

68,254

 

Unrealized appreciation on forward interest rate swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,427

 

Investments sold receivable

 

 

 

 

 

 

 

 

210,000

 

 

 

 

 

 

 

Interest receivable

 

 

1,280,820

 

 

1,893,714

 

 

1,177,604

 

 

1,328,749

 

 

1,319,723

 

 

1,073,723

 

 

538,997

 

Dividends receivable from affiliates

 

 

143

 

 

72

 

 

216

 

 

19

 

 

245

 

 

45

 

 

43

 

Prepaid expenses

 

 

19,078

 

 

18,164

 

 

15,541

 

 

15,818

 

 

20,662

 

 

10,743

 

 

5,593

 

Other assets

 

 

16,711

 

 

8,306

 

 

17,894

 

 

5,950

 

 

28,595

 

 

5,189

 

 

4,947

 

Total assets

 

 

158,451,682

 

 

147,973,951

 

 

130,769,674

 

 

128,331,386

 

 

171,251,608

 

 

89,477,610

 

 

46,193,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank overdraft

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized depreciation on forward interest rate swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments purchased payable

 

 

 

 

 

 

 

 

 

 

 

 

1,440,268

 

 

1,435,566

 

Interest expense and fees payable

 

 

 

 

 

 

 

 

9,756

 

 

 

 

 

 

1,238

 

Income dividends payable

 

 

286,195

 

 

394,023

 

 

43,535

 

 

283,669

 

 

309,570

 

 

249,771

 

 

91,056

 

Investment advisory fees payable

 

 

45,327

 

 

48,289

 

 

37,419

 

 

52,740

 

 

48,961

 

 

26,381

 

 

18,486

 

Officer’s and Trustees’ fees payable

 

 

17,374

 

 

8,864

 

 

15,349

 

 

6,385

 

 

29,502

 

 

5,545

 

 

5,281

 

Administration fee payable

 

 

12,951

 

 

 

 

10,691

 

 

 

 

13,989

 

 

 

 

 

Other affiliates payable

 

 

 

 

1,238

 

 

 

 

1,071

 

 

 

 

738

 

 

 

Other accrued expenses payable

 

 

150,313

 

 

62,637

 

 

163,110

 

 

91,012

 

 

183,439

 

 

34,654

 

 

41,942

 

Total accrued liabilities

 

 

512,160

 

 

515,051

 

 

270,104

 

 

444,633

 

 

585,461

 

 

1,757,357

 

 

1,593,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust certificates3

 

 

 

 

 

 

 

 

6,010,000

 

 

 

 

 

 

669,087

 

Total Liabilities

 

 

512,160

 

 

515,051

 

 

270,104

 

 

6,454,633

 

 

585,461

 

 

1,757,357

 

 

2,262,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares at Redemption Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0.001 par value per share at $25,000 per share liquidation preference4

 

 

 

 

55,552,931

 

 

 

 

42,903,071

 

 

 

 

31,413,255

 

 

16,830,997

 

Net Assets Applicable to Common Shares

 

$

157,939,522

 

$

91,905,969

 

$

130,499,570

 

$

78,973,682

 

$

170,666,147

 

$

56,306,998

 

$

27,099,899

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders Consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par Value5

 

$

104,071

 

$

6,433

 

$

87,071

 

$

5,562

 

$

112,571

 

$

3,633

 

$

2,023

 

Paid-in capital in excess of par

 

 

144,174,166

 

 

91,213,865

 

 

120,583,337

 

 

78,885,738

 

 

155,947,555

 

 

51,482,732

 

 

28,489,375

 

Undistributed net investment income

 

 

12,254,594

 

 

4,714,125

 

 

8,867,654

 

 

654,201

 

 

12,146,953

 

 

3,839,250

 

 

87,018

 

Accumulated net realized gain (loss)

 

 

18,645

 

 

(3,572,117

)

 

452,066

 

 

36,769

 

 

2,326,539

 

 

(1,445,791

)

 

(747,728

)

Net unrealized appreciation/depreciation

 

 

1,388,046

 

 

(456,337

)

 

509,442

 

 

(608,588

)

 

132,529

 

 

2,427,174

 

 

(730,789

)

Net assets applicable to Common Shareholders

 

$

157,939,522

 

$

91,905,969

 

$

130,499,570

 

$

78,973,682

 

$

170,666,147

 

$

56,306,998

 

$

27,099,899

 

Net asset value per common share6

 

$

15.18

 

$

14.29

 

$

14.99

 

$

14.20

 

$

15.16

 

$

15.50

 

$

13.39

 

1 Investments at cost – unaffiliated

 

$

155,735,740

 

$

145,725,042

 

$

129,037,732

 

$

127,258,894

 

$

165,543,072

 

$

80,223,811

 

$

40,141,458

 

2 Investments at cost – affiliated

 

$

 

$

726,393

 

$

 

$

2,542

 

$

 

$

5,465,412

 

$

6,165,049

 

3 Represents short-term floating rate certificates issued by tender option bond trusts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares outstanding

 

 

 

$

2,221

 

 

 

$

1,716

 

 

 

$

1,256

 

$

673

 

5 Par value per share

 

$

0.010

 

$

0.001

 

$

0.010

 

$

0.001

 

$

0.010

 

$

0.001

 

$

0.001

 

6 Common Shares outstanding

 

 

10,407,093

 

 

6,433,028

 

 

8,707,093

 

 

5,562,128

 

 

11,257,093

 

 

3,633,028

 

 

2,023,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

45

 


Statements of Operations

 

 

Six Months Ended June 30, 2008 (Unaudited)

 

BlackRock
Insured
Municipal
2008 Term Trust
(BRM)

 

BlackRock
Insured
Municipal
Term Trust
(BMT)

 

BlackRock
Municipal
2018 Term Trust
(BPK)

 

BlackRock
Municipal
2020 Term Trust
(BKK)

 

BlackRock
Strategic
Municipal Trust
(BSD)

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

7,716,733

 

$

6,896,730

 

$

9,843,454

 

$

12,576,268

 

$

4,344,477

 

Dividends from affiliates

 

 

 

 

 

 

44,806

 

 

 

 

47,426

 

Income from affiliates

 

 

2,659

 

 

2,278

 

 

1,283

 

 

1,416

 

 

345

 

Total income

 

 

7,719,392

 

 

6,899,008

 

 

9,889,543

 

 

12,577,684

 

 

4,392,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory

 

 

719,177

 

 

583,915

 

 

741,001

 

 

1,167,107

 

 

481,307

 

Commissions on Preferred Shares

 

 

 

 

72,339

 

 

172,929

 

 

211,676

 

 

68,657

 

Accounting services

 

 

40,463

 

 

44,730

 

 

18,834

 

 

26,472

 

 

26,015

 

Professional

 

 

20,436

 

 

53,398

 

 

55,351

 

 

52,751

 

 

32,364

 

Transfer agent

 

 

8,291

 

 

9,361

 

 

7,271

 

 

12,436

 

 

9,745

 

Printing

 

 

 

 

5,686

 

 

3,304

 

 

21,468

 

 

7,171

 

Officer and Trustees/Directors

 

 

 

 

 

 

5,070

 

 

10,835

 

 

2,721

 

Custodian

 

 

15,590

 

 

10,021

 

 

10,820

 

 

13,165

 

 

7,188

 

Registration

 

 

5,624

 

 

4,462

 

 

4,425

 

 

4,241

 

 

4,436

 

Administrative

 

 

205,479

 

 

166,587

 

 

 

 

 

 

 

Miscellaneous

 

 

61,146

 

 

 

 

8,651

 

 

15,686

 

 

5,968

 

Total expenses excluding interest expense and fees

 

 

1,076,206

 

 

950,499

 

 

1,027,656

 

 

1,535,837

 

 

645,572

 

Interest expense and fees1

 

 

 

 

 

 

7,622

 

 

7,944

 

 

34,048

 

Total expenses

 

 

1,076,206

 

 

950,499

 

 

1,035,278

 

 

1,543,781

 

 

679,620

 

Less investment advisory fees waived

 

 

 

 

 

 

 

 

 

 

(40,108

)

Less fees waived by advisor

 

 

 

 

 

 

(3,930

)

 

 

 

(4,903

)

Less fees paid indirectly

 

 

 

 

(57

)

 

(34

)

 

 

 

(44

)

Total expenses after fees waived and paid indirectly

 

 

1,076,206

 

 

950,442

 

 

1,031,314

 

 

1,543,781

 

 

634,565

 

Net investment income

 

 

6,643,186

 

 

5,948,566

 

 

8,858,229

 

 

11,033,903

 

 

3,757,683

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

4,240,964

 

 

24,426

 

 

334,992

 

 

1,092,123

 

 

(1,150,282

)

Futures and swaps

 

 

 

 

 

 

 

 

 

 

(804,819

)

 

 

 

4,240,964

 

 

24,426

 

 

334,992

 

 

1,092,123

 

 

(1,955,101

)

Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(4,905,733

)

 

(1,332,231

)

 

(13,598,905

)

 

(19,702,550

)

 

(5,768,393

)

Futures and swaps

 

 

 

 

 

 

 

 

 

 

510,136

 

 

 

 

(4,905,733

)

 

(1,332,231

)

 

(13,598,905

)

 

(19,702,550

)

 

(5,258,257

)

Total net realized and unrealized gain (loss)

 

 

(664,769

)

 

(1,307,805

)

 

(13,263,913

)

 

(18,610,427

)

 

(7,213,358

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

(1,038,351

)

 

(2,126,657

)

 

(2,920,162

)

 

(1,014,204

)

Net realized gains

 

 

 

 

(6,089

)

 

(178,128

)

 

(57,283

)

 

(19,754

)

Total dividends and distributions

 

 

 

 

(1,044,440

)

 

(2,304,785

)

 

(2,977,445

)

 

(1,033,958

)

Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

5,978,417

 

$

3,596,321

 

$

(6,710,469

)

$

(10,553,969

)

$

(4,489,633

)

1

Related to tender option bond trusts

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

46

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Statements of Operations

 

 

Six Months Ended June 30, 2008 (Unaudited)

 

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)

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

3,304,824

 

$

3,766,336

 

$

2,311,049

 

$

3,238,563

 

$

2,821,383

 

$

2,149,039

 

$

1,056,299

 

Dividends from affiliates

 

 

 

 

27,952

 

 

 

 

2,078

 

 

 

 

56,886

 

 

28,789

 

Income from affiliates

 

 

549

 

 

274

 

 

486

 

 

197

 

 

938

 

 

171

 

 

163

 

Total income

 

 

3,305,373

 

 

3,794,562

 

 

2,311,535

 

 

3,240,838

 

 

2,822,321

 

 

2,206,096

 

 

1,085,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory

 

 

276,133

 

 

297,562

 

 

226,818

 

 

322,439

 

 

297,934

 

 

176,956

 

 

135,091

 

Commissions on Preferred Shares

 

 

 

 

75,379

 

 

 

 

53,992

 

 

 

 

41,609

 

 

22,096

 

Accounting services

 

 

12,574

 

 

11,454

 

 

11,728

 

 

9,066

 

 

15,400

 

 

8,703

 

 

8,610

 

Professional

 

 

41,075

 

 

32,672

 

 

12,835

 

 

64,154

 

 

13,203

 

 

26,089

 

 

22,878

 

Transfer agent

 

 

4,321

 

 

6,656

 

 

3,265

 

 

7,120

 

 

5,612

 

 

6,056

 

 

8,686

 

Printing

 

 

 

 

1,439

 

 

 

 

2,023

 

 

 

 

4,293

 

 

4,182

 

Officer and Trustees/Directors

 

 

6,812

 

 

5,306

 

 

1,157

 

 

3,197

 

 

7,969

 

 

2,632

 

 

367

 

Custodian

 

 

6,403

 

 

6,031

 

 

6,641

 

 

4,693

 

 

6,277

 

 

4,148

 

 

1,919

 

Registration

 

 

3,947

 

 

4,689

 

 

4,342

 

 

7,328

 

 

4,604

 

 

4,577

 

 

83

 

Administrative

 

 

78,895

 

 

 

 

64,805

 

 

 

 

85,124

 

 

 

 

 

Miscellaneous

 

 

58,738

 

 

4,128

 

 

63,240

 

 

 

 

64,360

 

 

12,208

 

 

6,867

 

Total expenses excluding interest expense and fees

 

 

488,898

 

 

445,316

 

 

394,831

 

 

474,012

 

 

500,483

 

 

287,271

 

 

210,779

 

Interest expense and fees1

 

 

 

 

 

 

 

 

12,179

 

 

 

 

 

 

1,503

 

Total expenses

 

 

488,898

 

 

445,316

 

 

394,831

 

 

486,191

 

 

500,483

 

 

287,271

 

 

212,282

 

Less investment advisory fees waived

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,258

 

Less fees waived by advisor

 

 

 

 

(5,196

)

 

 

 

(618

)

 

 

 

(13,412

)

 

(8,550

)

Less fees paid indirectly

 

 

(1,293

)

 

 

 

 

 

(5

)

 

(267

)

 

(1

)

 

(4

)

Total expenses after fees waived and paid indirectly

 

 

487,605

 

 

440,120

 

 

394,831

 

 

485,568

 

 

500,216

 

 

273,858

 

 

192,470

 

Net investment income

 

 

2,817,768

 

 

3,354,442

 

 

1,916,704

 

 

2,755,270

 

 

2,322,105

 

 

1,932,238

 

 

892,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

589,645

 

 

(18,031

)

 

508,458

 

 

43,163

 

 

2,541,257

 

 

153,794

 

 

(365,543

)

Futures and swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(104,110

)

 

 

 

589,645

 

 

(18,031

)

 

508,458

 

 

43,163

 

 

2,541,257

 

 

153,794

 

 

(469,653

)

Net change in unrealized appreciation/depreciation on:

 

 

(1,440,921

)

 

(3,490,612

)

 

(551,228

)

 

(3,205,626

)

 

(2,521,538

)

 

(1,811,486

)

 

(990,993

)

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61,629

 

Futures and swaps

 

 

(1,440,921

)

 

(3,490,612

)

 

(551,228

)

 

(3,205,626

)

 

(2,521,538

)

 

(1,811,486

)

 

(929,364

)

Total net realized and unrealized gain (loss)

 

 

(851,276

)

 

(3,508,643

)

 

(42,770

)

 

(3,162,463

)

 

19,719

 

 

(1,657,692

)

 

(1,399,017

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

(862,141

)

 

 

 

(813,442

)

 

 

 

(468,656

)

 

(280,363

)

Net realized gains

 

 

 

 

(50,408

)

 

 

 

 

 

 

 

(42,880

)

 

 

Total dividends and distributions

 

 

 

 

(912,549

)

 

 

 

(813,442

)

 

 

 

(511,536

)

 

(280,363

)

Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

1,966,492

 

$

(1,066,750

)

$

1,873,934

 

$

(1,220,635

)

$

2,341,824

 

$

(236,990

)

$

(786,599

)

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

47

 


Statements of Changes in Net Assets

 

 

 

 

BlackRock
Insured Municipal
2008 Term Trust (BRM)

 

BlackRock
Insured Municipal
Term Trust (BMT)

 

 

 

Six Months Ended

 

 

 

Six Months Ended

 

 

 

 

 

June 30, 2008

 

Year Ended

 

June 30, 2008

 

Year Ended

 

Increase (Decrease) in Net Assets

 

(Unaudited)

 

December 31, 2007

 

(Unaudited)

 

December 31, 2007

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

6,643,186

 

 

$

17,986,867

 

 

$

5,948,566

 

 

$

13,606,247

 

 

Net realized gain (loss)

 

 

4,240,964

 

 

 

(268,830

)

 

 

24,426

 

 

 

308,636

 

 

Net change in unrealized appreciation/depreciation

 

 

(4,905,733

)

 

 

(2,670,995

)

 

 

(1,332,231

)

 

 

870,349

 

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

(697,109

)

 

 

(1,038,351

)

 

 

(3,201,906

)

 

Net realized gain

 

 

 

 

 

 

 

 

(6,089

)

 

 

(58,959

)

 

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

5,978,417

 

 

 

14,349,933

 

 

 

3,596,321

 

 

 

11,524,367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(7,155,465

)

 

 

(20,747,886

)

 

 

(4,724,181

)

 

 

(9,448,365

)

 

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

(237,423

)

 

Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(7,155,465

)

 

 

(20,747,886

)

 

 

(4,724,181

)

 

 

(9,685,788

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in net assets from reinvestment of common dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets applicable to Common Shares

 

 

(1,177,048

)

 

 

(6,397,953

)

 

 

(1,127,860

)

 

 

1,838,579

 

 

Beginning of period

 

 

413,233,488

 

 

 

419,631,441

 

 

 

267,947,094

 

 

 

266,108,515

 

 

End of period

 

$

412,056,440

 

 

$

413,233,488

 

 

$

266,819,234

 

 

$

267,947,094

 

 

End of period undistributed net investment income

 

$

30,367,775

 

 

$

30,880,054

 

 

$

16,902,197

 

 

$

16,716,163

 

 

 

 

 

 

BlackRock
California Municipal
2018 Term Trust (BJZ)

 

BlackRock
Florida Insured Municipal
2008 Term Trust (BRF)

 

 

 

Six Months Ended

 

 

 

Six Months Ended

 

 

 

 

 

June 30, 2008

 

Year Ended

 

June 30, 2008

 

Year Ended

 

Increase (Decrease) in Net Assets

 

(Unaudited)

 

December 31, 2007

 

(Unaudited)

 

December 31, 2007

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

3,354,442

 

 

$

6,790,598

 

 

$

1,916,704

 

 

$

4,693,172

 

 

Net realized gain (loss)

 

 

(18,031

)

 

 

67,378

)

 

 

508,458

 

 

 

159,045

 

 

Net change in unrealized appreciation/depreciation

 

 

(3,490,612

)

 

 

(2,946,357

)

 

 

(551,228

)

 

 

(338,217

)

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(862,141

)

 

 

(1,884,712

)

 

 

 

 

 

 

 

Net realized gain

 

 

(50,408

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets applicable to common shareholders resulting from operations

 

 

(1,066,750

)

 

 

2,026,907

 

 

 

1,873,934

 

 

 

4,514,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(2,364,138

)

 

 

(4,854,845

)

 

 

(914,245

)

 

 

(4,084,261

)

 

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(2,364,138

)

 

 

(4,854,845

)

 

 

(914,245

)

 

 

(4,084,261

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in net assets from reinvestment of common dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets applicable to Common Shares

 

 

(3,430,888

)

 

 

(2,827,938

)

 

 

959,689

 

 

 

429,739

 

 

Beginning of period

 

 

95,336,857

 

 

 

98,164,795

 

 

 

129,539,881

 

 

 

129,110,142

 

 

End of period

 

$

91,905,969

 

 

$

95,336,857

 

 

$

130,499,570

 

 

$

129,539,881

 

 

End of period undistributed net investment income

 

$

4,714,125

 

 

$

4,585,962

 

 

$

8,867,654

 

 

$

7,865,195

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

48

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


 

 

BlackRock
Municipal 2018
Term Trust (BPK)

 

BlackRock
Municipal 2020
Term Trust (BKK)

 

BlackRock
Strategic Municipal
Trust (BSD)

 

BlackRock
California Insured Municipal
2008 Term Trust (BFC)

 

Increase (Decrease) in Net Assets

 

Six Months Ended
June 30, 2008
(Unaudited)

 

Year Ended
December 31, 2007

 

Six Months Ended
June 30, 2008
(Unaudited)

 

Year Ended
December 31, 2007

 

Six Months Ended
June 30, 2008
(Unaudited)

 

Year Ended
December 31, 2007

 

Six Months Ended
June 30, 2008
(Unaudited)

 

Year Ended
December 31, 2007

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

8,858,229

 

 

$

18,678,968

 

 

$

11,033,903

 

 

$

22,564,782

 

 

$

3,757,683

 

 

$

7,787,890

 

 

$

2,817,768

 

 

$

6,809,676

 

 

Net realized gain (loss)

 

 

334,992

 

 

 

617,774

 

 

 

1,092,123

 

 

 

268,071

 

 

 

(1,955,101

)

 

 

1,711,382

 

 

 

589,645

 

 

 

130,582

 

 

Net change in unrealized appreciation/depreciation

 

 

(13,598,905

)

 

 

(13,806,059

)

 

 

(19,702,550

)

 

 

(19,802,469

)

 

 

(5,258,257

)

 

 

(9,831,016

)

 

 

(1,440,921

)

 

 

(1,293,687

)

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(2,126,657

)

 

 

(5,136,395

)

 

 

(2,920,162

)

 

 

(6,645,261

)

 

 

(1,014,204

)

 

 

(2,313,246

)

 

 

 

 

 

 

 

Net realized gain

 

 

(178,128

)

 

 

 

 

 

(57,283

)

 

 

 

 

 

(19,754

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(6,710,469

)

 

 

354,288

 

 

 

(10,553,969

)

 

 

(3,614,877

)

 

 

(4,489,633

)

 

 

(2,644,990

)

 

 

1,966,492

 

 

 

5,646,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(7,206,337

)

 

 

(14,862,712

)

 

 

(7,558,381

)

 

 

(16,144,296

)

 

 

(3,187,221

)

 

 

(7,402,121

)

 

 

(3,018,057

)

 

 

(7,022,201

)

 

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(7,206,337

)

 

 

(14,862,712

)

 

 

(7,558,381

)

 

 

(16,144,296

)

 

 

(3,187,221

)

 

 

(7,402,121

)

 

 

(3,018,057

)

 

 

(7,022,201

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in net assets from reinvestment of common dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

120,289

 

 

 

231,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets applicable to Common Shares

 

 

(13,916,806

)

 

 

(14,508,424

)

 

 

(18,112,350

)

 

 

(19,759,173

)

 

 

(7,556,565

)

 

 

(9,815,552

)

 

 

(1,051,565

)

 

 

(1,375,630

)

 

Beginning of period

 

 

239,608,563

 

 

 

254,116,987

 

 

 

299,372,183

 

 

 

319,131,356

 

 

 

103,881,599

 

 

 

113,697,151

 

 

 

158,991,087

 

 

 

160,366,717

 

 

End of period

 

$

225,691,757

 

 

$

239,608,563

 

 

$

281,259,833

 

 

$

299,372,183

 

 

$

96,325,034

 

 

$

103,881,599

 

 

$

157,939,522

 

 

$

158,991,087

 

 

End of period undistributed net investment income

 

$

15,394,069

 

 

$

15,868,834

 

 

$

2,080,249

 

 

$

1,524,889

 

 

$

353,609

 

 

$

797,351

 

 

$

12,254,594

 

 

$

12,454,883

 

 

 

 

 

 

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)

 

Increase (Decrease) in

 

Six Months Ended
June 30, 2008

 

Year Ended

 

Six Months Ended
June 30, 2008

 

Year Ended

 

Six Months Ended
June 30, 2008

 

Year Ended

 

Six Months Ended
June 30, 2008

 

Year Ended

 

Net Assets

 

(Unaudited)

 

December 31, 2007

 

(Unaudited)

 

December 31, 2007

 

(Unaudited)

 

December 31, 2007

 

(Unaudited)

 

December 31, 2007

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

2,755,270

 

 

$

5,510,035

 

 

$

2,322,105

 

 

$

7,693,475

 

 

$

1,932,238

 

 

$

4,283,194

 

 

$

892,781

 

 

$

2,006,835

 

 

Net realized gain (loss)

 

 

43,163

 

 

 

1,545,672

 

 

 

2,541,257

 

 

 

(36

)

 

 

(153,794

)

 

 

(31,335

) 

 

 

(469,653

)

 

 

485,697

 

 

Net change in unrealized appreciation/depreciation

 

 

(3,205,626

)

 

 

(4,021,372

)

 

 

(2,521,538

)

 

 

(1,751,951

)

 

 

(1,811,486

)

 

 

(1,603,702

)

 

 

(929,364

)

 

 

(1,991,463

)

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(813,442

)

 

 

(1,722,437

)

 

 

 

 

 

 

 

 

(468,656

)

 

 

(1,006,652

)

 

 

(280,363

)

 

 

(618,041

)

 

Net realized gain

 

 

 

 

 

(104,875

 

 

 

 

 

 

 

 

 

(42,880

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(1,220,635

)

 

 

1,207,023

 

 

 

2,341,824

 

 

 

5,941,488

 

 

 

(236,990

)

 

 

1,641,505

 

 

 

(786,599

)

 

 

(116,972

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1,702,011

)

 

 

(3,404,022

)

 

 

(2,842,416

)

 

 

(8,327,972

)

 

 

(1,498,624

)

 

 

(2,911,923

)

 

 

(697,830

)

 

 

(1,669,162

)

 

Net realized gain

 

 

 

 

 

(206,833

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(1,702,011

)

 

 

(3,610,855

)

 

 

(2,842,416

)

 

 

(8,327,972

)

 

 

(1,498,624

)

 

 

(2,911,923

)

 

 

(697,830

)

 

 

(1,669,162

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in net assets from reinvestment of common dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,027

 

 

 

40,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets applicable to Common Shares

 

 

(2,922,646

)

 

 

(2,403,832

)

 

 

(500,592

)

 

 

(2,386,484

)

 

 

(1,735,614

)

 

 

(1,270,418

)

 

 

(1,460,402

)

 

 

(1,745,366

)

 

Beginning of period

 

 

81,896,328

 

 

 

84,300,160

 

 

 

171,166,739

 

 

 

173,553,223

 

 

 

58,042,612

 

 

 

59,313,030

 

 

 

28,560,301

 

 

 

30,305,667

 

 

End of period

 

$

78,973,682

 

 

$

81,896,328

 

 

$

170,666,147

 

 

$

171,166,739

 

 

$

56,306,998

 

 

$

58,042,612

 

 

$

27,099,899

 

 

$

28,560,301

 

 

End of period undistributed net investment income

 

$

654,201

 

 

$

414,384

 

 

$

12,146,953

 

 

$

12,667,264

 

 

$

3,839,250

 

 

$

3,874,292

 

 

$

87,018

 

 

$

172,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

49

 


Financial Highlights

BlackRock Insured Municipal 2008 Term Trust (BRM)

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2008

 

Year Ended December 31,

 

 

(Unaudited)

 

 

2007

 

 

2006

 

 

2005

 

 

2004

 

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

15.19

 

 

$

15.42

 

$

15.89

 

$

16.75

 

$

17.38

 

$

17.62

 

Net investment income

 

 

0.24

1

 

 

0.66

 

 

0.88

 

 

0.91

 

 

0.97

 

 

1.07

 

Net realized and unrealized loss

 

 

(0.02

)

 

 

(0.10

)

 

(0.30

)

 

(0.75

)

 

(0.55

)

 

(0.07

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

(0.03

)

 

(0.24

)

 

(0.22

)

 

(0.10

)

 

(0.08

)

Net realized gain

 

 

 

 

 

 

 

2

 

 

 

(0.01

)

 

(0.01

)

Net increase (decrease) from investment operations

 

 

0.22

 

 

 

0.53

 

 

0.34

 

 

(0.06

)

 

0.31

 

 

0.91

 

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.26

)

 

 

(0.76

)

 

(0.80

)

 

(0.80

)

 

(0.88

)

 

(1.02

)

Net realized gain

 

 

 

 

 

 

 

(0.01

)

 

 

 

(0.06

)

 

(0.13

)

Total dividends and distributions

 

 

(0.26

)

 

 

(0.76

)

 

(0.81

)

 

(0.80

)

 

(0.94

)

 

(1.15

)

Net asset value, end of period

 

$

15.15

 

 

$

15.19

 

$

15.42

 

$

15.89

 

$

16.75

 

$

17.38

 

Market price, end of period

 

$

14.99

 

 

$

15.03

 

$

15.53

 

$

15.30

 

$

16.31

 

$

17.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

1.49

%4

 

 

3.56

%

 

2.21

%

 

(0.30

)%

 

1.95

%

 

5.39

%

Based on market price

 

 

1.49

%4

 

 

1.74

%

 

6.91

%

 

(1.41

)%

 

(0.09

)%

 

11.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and before fee paid indirectly

 

 

0.52

%5

 

 

0.60

%

 

0.91

%

 

1.03

%

 

0.99

%

 

0.98

%

Total expenses before fees waived and paid indirectly

 

 

0.52

%5

 

 

0.60

%

 

0.92

%

 

1.03

%

 

1.00

%

 

0.98

%

Total expenses

 

 

0.52

%5

 

 

0.60

%

 

0.92

%

 

1.03

%

 

1.00

%

 

0.98

%

Net investment income after fees waived and paid indirectly and before Auction Preferred Share dividends

 

 

3.22

%5

 

 

4.33

%

 

5.66

%

 

5.58

%

 

5.66

%

 

6.03

%

Dividends to Preferred Shareholders

 

 

5

 

 

0.17

%

 

1.53

%

 

1.33

%

 

0.57

%

 

0.47

%

Net investment income to Common Shareholders

 

 

3.22

%5

 

 

4.16

%

 

4.13

%

 

4.25

%

 

5.09

%

 

5.56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

412,056

 

 

$

413,233

 

$

419,631

 

$

432,406

 

$

455,660

 

$

472,785

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

 

 

$

 

$

81,000

 

$

271,000

 

$

271,000

 

$

271,000

 

Portfolio turnover

 

 

10

%

 

 

 

 

 

 

3

%

 

4

%

 

18

%

Asset coverage per $1,000

 

$

 

 

$

 

$

154,534

 

$

64,902

 

$

67,041

 

$

68,622

 

1

Based on average shares outstanding.

2

Amount is less than $(0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

50

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Financial Highlights

BlackRock Insured Municipal Term Trust (BMT)

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2008

 

Year Ended December 31,

 

 

(Unaudited)

 

 

2007

 

 

2006

 

 

2005

 

 

2004

 

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

10.35

 

 

$

10.28

 

$

10.51

 

$

11.05

 

$

11.40

 

$

11.29

 

Net investment income

 

 

0.23

1

 

 

0.53

 

 

0.61

 

 

0.59

 

 

0.67

 

 

0.73

 

Net realized and unrealized gain (loss)

 

 

(0.05

)

 

 

0.04

 

 

(0.18

)

 

(0.38

)

 

(0.34

)

 

0.10

 

Dividends and distributiions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.04

)

 

 

(0.12

)

 

(0.21

)

 

(0.15

)

 

(0.07

)

 

(0.06

)

Net realized gain2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase from investment operations .

 

 

0.14

 

 

 

0.45

 

 

0.22

 

 

0.06

 

 

0.26

 

 

0.77

 

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.18

)

 

 

(0.37

)

 

(0.45

)

 

(0.58

)

 

(0.58

)

 

(0.64

)

Net realized gain

 

 

2

 

 

(0.01

)

 

2

 

(0.02

)

 

(0.03

)

 

(0.02

)

Total dividends and distributions

 

 

(0.18

)

 

 

(0.38

)

 

(0.45

)

 

(0.60

)

 

(0.61

)

 

(0.66

)

Net asset value, end of period

 

$

10.31

 

 

$

10.35

 

$

10.28

 

$

10.51

 

$

11.05

 

$

11.40

 

Market price, end of period

 

$

10.05

 

 

$

9.85

 

$

9.77

 

$

10.36

 

$

11.30

 

$

11.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

1.42

%4

 

 

4.57

%

 

2.26

%

 

0.37

%

 

2.39

%

 

7.15

%

Based on market price

 

 

3.89

%4

 

 

4.71

%

 

(1.40

)%

 

(3.26

)%

 

7.92

%

 

7.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and before fee paid indirectly

 

 

0.70

%5

 

 

0.83

%

 

1.05

%

 

1.04

%

 

1.02

%

 

1.02

%

Total expenses before fees waived and paid indirectly

 

 

0.70

%5

 

 

0.83

%

 

1.06

%

 

1.05

%

 

1.02

%

 

1.02

%

Total expenses

 

 

0.70

%5

 

 

0.83

%

 

1.06

%

 

1.05

%

 

1.02

%

 

1.02

%

Net investment income after fees waived and paid indirectly and before Auction Preferred Share dividends

 

 

4.40

%5

 

 

5.13

%

 

5.91

%

 

5.48

%

 

6.04

%

 

6.36

%

Dividends paid to Preferred Shareholders

 

 

0.77

%5

 

 

1.21

%

 

2.04

%

 

1.35

%

 

0.66

%

 

0.50

%

Net investment income to Common Shareholders

 

 

3.63

%5

 

 

3.92

%

 

3.87

%

 

4.13

%

 

5.38

%

 

5.86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

266,819

 

 

$

267,947

 

$

266,109

 

$

272,015

 

$

286,129

 

$

295,028

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

50,000

 

 

$

65,000

 

$

170,400

 

$

170,400

 

$

170,400

 

$

170,400

 

Portfolio turnover

 

 

 

 

 

 

 

1

%

 

 

 

1

%

 

11

%

Asset coverage per $1,000

 

$

158,422

 

 

$

128,071

 

$

64,062

 

$

64,924

 

$

66,987

 

$

68,288

 

1

Based on average shares outstanding.

2

Amount is less than $(0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

51

 


Financial Highlights

BlackRock Municipal 2018 Term Trust (BPK)

 

 

 

Six Months Ended
June 30, 2008

 

Year Ended December 31,

 

 

(Unaudited)

 

2007

 

2006

 

2005

 

2004

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

15.06

 

$

15.97

 

$

15.71

 

$

15.81

 

$

15.53

 

$

14.66

 

Net investment income

 

 

0.56

1

 

1.17

 

 

1.15

 

 

1.19

 

 

1.21

 

 

1.21

 

Net realized and unrealized gain (loss)

 

 

(0.84

)

 

(0.83

)

 

0.31

 

 

(0.25

)

 

(0.05

)

 

0.52

 

Dividends and distributiions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.13

)

 

(0.32

)

 

(0.29

)

 

(0.20

)

 

(0.10

)

 

(0.08

)

Net increase (decrease) from investment operations

 

 

(0.41

)

 

0.02

 

 

1.17

 

 

0.74

 

 

1.06

 

 

1.65

 

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.45

)

 

(0.93

)

 

(0.91

)

 

(0.84

)

 

(0.78

)

 

(0.78

)

Net realized gain

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

Total dividends and distributions

 

 

(0.46

)

 

(0.93

)

 

(0.91

)

 

(0.84

)

 

(0.78

)

 

(0.78

)

Net asset value, end of period

 

$

14.19

 

$

15.06

 

$

15.97

 

$

15.71

 

$

15.81

 

$

15.53

 

Market price, end of period

 

$

15.10

 

$

15.22

 

$

17.01

 

$

15.71

 

$

15.16

 

$

14.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(3.04

)%3

 

(0.10

)%

 

7.46

%

 

4.86

%

 

7.30

%

 

11.87

%

Based on market price

 

 

2.10

%3

 

(5.21

)%

 

14.46

%

 

9.35

%

 

11.27

%

 

12.92

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense and fees4

 

 

0.87

%5

 

0.89

%

 

0.90

%

 

0.91

%

 

0.91

%

 

0.93

%

Total expenses after fees waived and paid indirectly

 

 

0.88

%5

 

0.89

%

 

0.90

%

 

0.91

%

 

0.91

%

 

0.93

%

Total expenses after fees waived and before fees paid indirectly

 

 

0.88

%5

 

0.89

%

 

0.91

%

 

0.91

%

 

0.91

%

 

0.94

%

Total expenses

 

 

0.88

%5

 

0.89

%

 

0.91

%

 

0.91

%

 

0.91

%

 

0.94

%

Net investment income after fees waived and paid indirectly and before Auction Preferred Shares dividends

 

 

7.56

%5

 

7.57

%

 

7.27

%

 

7.53

%

 

7.83

%

 

8.21

%

Dividends payed to Preferred Shareholders

 

 

1.81

%5

 

2.08

%

 

1.83

%

 

1.27

%

 

0.64

%

 

0.57

%

Net investment income to Common Shareholders

 

 

5.75

%5

 

5.49

%

 

5.44

%

 

6.26

%

 

7.19

%

 

7.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

225,692

 

$

239,609

 

$

254,117

 

$

249,890

 

$

251,560

 

$

247,032

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

133,850

 

$

137,600

 

$

137,600

 

$

137,600

 

$

137,600

 

$

137,600

 

Portfolio turnover

 

 

3

%

 

7

%

 

7

%

 

15

%

 

31

%

 

15

%

Asset coverage per $1,000

 

$

67,162

 

$

68,548

 

$

71,179

 

$

70,407

 

$

70,736

 

$

69,887

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

5

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

52

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Financial Highlights

BlackRock Municipal 2020 Term Trust (BKK)

 

 

 

Six Months Ended
June 30, 2008

 

Year Ended December 31,

 

Period
September 30, 20031
through

 

 

 

(Unaudited)

 

2007

 

2006

 

2005

 

2004

 

December 31, 2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.79

 

$

15.77

 

$

15.28

 

$

14.85

 

$

14.51

 

$

14.33

2

Net investment income

 

 

0.55

3

 

1.12

 

 

1.10

 

 

1.11

 

 

1.10

 

 

0.15

 

Net realized and unrealized gain (loss)

 

 

(0.93

)

 

(0.97

)

 

0.48

 

 

0.39

 

 

0.28

 

 

0.25

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.14

)

 

(0.33

)

 

(0.29

)

 

(0.20

)

 

(0.10

)

 

(0.01

)

Net realized gain

 

 

4

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) from investment operations

 

 

(0.52

)

 

(0.18

)

 

1.29

 

 

1.30

 

 

1.28

 

 

0.39

 

Dividends to Common Shareholders from net investment income

 

 

(0.37

)

 

(0.80

)

 

(0.80

)

 

(0.87

)

 

(0.94

)

 

(0.16

)

Capital charges with respect to issuance of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.03

)

Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

Total capital charges

 

 

 

 

 

 

 

 

 

 

 

 

(0.05

)

Net asset value, end of period

 

$

13.90

 

$

14.79

 

$

15.77

 

$

15.28

 

$

14.85

 

$

14.51

 

Market price, end of period

 

$

13.78

 

$

13.60

 

$

15.77

 

$

14.00

 

$

15.02

 

$

15.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(3.59

)%6

 

(1.16

)%

 

8.72

%

 

8.98

%

 

8.98

%

 

2.36

%6

Based on market price

 

 

3.94

%6

 

(9.11

)%

 

18.66

%

 

(1.28

)%

 

6.63

%

 

1.05

%6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses after fees waived and paid indirectly and excluding interest expense and fees7

 

 

1.06

%8

 

1.05

%

 

1.07

%

 

1.08

%

 

1.09

%

 

0.85

%8

Expenses after fees waived and paid indirectly

 

 

1.06

%8

 

1.05

%

 

1.07

%

 

1.08

%

 

1.09

%

 

0.85

%8

Expenses after fees waived and before fees paid indirectly

 

 

1.06

%8

 

1.06

%

 

1.07

%

 

1.09

%

 

1.09

%

 

0.87

%8

Total expenses

 

 

1.06

%8

 

1.06

%

 

1.07

%

 

1.09

%

 

1.09

%

 

0.87

%8

Net investment income after fees waived and paid indirectly and before dividends to Preferred Shareholders

 

 

7.58

%8

 

7.27

%

 

7.09

%

 

7.27

%

 

7.67

%

 

4.25

%8

Dividends to Preferred Shareholders

 

 

2.01

%8

 

2.14

%

 

1.89

%

 

1.34

%

 

0.72

%

 

0.30

%8

Net investment income to Common Shareholders

 

 

5.57

%8

 

5.13

%

 

5.20

%

 

5.93

%

 

6.95

%

 

3.95

%8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

281,260

 

$

299,372

 

$

319,131

 

$

309,146

 

$

300,518

 

$

293,598

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

173,850

 

$

177,600

 

$

177,600

 

$

177,600

 

$

177,600

 

$

177,600

 

Portfolio turnover

 

 

3

%

 

4

%

 

12

%

 

14

%

 

51

%

 

17

%

Asset coverage per $1,000

 

$

65,454

 

$

67,154

 

$

69,937

 

$

68,527

 

$

67,307

 

$

66,332

 

1

Commencement of operations.

2

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

3

Based on average shares outstanding.

4

Amount is less than ($0.01) per share.

5

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

6

Aggregate total investment return.

7

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

8

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

53

 


Financial Highlights

BlackRock Strategic Municipal Trust (BSD)

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2008

 

Year Ended December 31,

 

 

(Unaudited)

 

 

2007

 

 

2006

 

 

2005

 

 

2004

 

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.27

 

 

$

15.64

 

$

15.68

 

$

15.70

 

$

15.91

 

$

15.01

 

Net investment income

 

 

0.52

1

 

 

1.07

 

 

1.07

 

 

1.14

 

 

1.26

 

 

1.23

 

Net realized and unrealized gain (loss)

 

 

(0.99

)

 

 

(1.10

)

 

0.28

 

 

0.07

 

 

(0.41

)

 

0.68

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.14

)

 

 

(0.32

)

 

(0.29

)

 

(0.20

)

 

(0.10

)

 

(0.08

)

Net realized gain

 

 

2

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) from investment operations

 

 

(0.61

)

 

 

(0.35

)

 

1.06

 

 

1.01

 

 

0.75

 

 

1.83

 

Dividends to Common Shareholders from net investment income

 

 

(0.44

)

 

 

(1.02

)

 

(1.10

)

 

(1.03

)

 

(0.96

)

 

(0.93

)

Net asset value, end of period

 

$

13.22

 

 

$

14.27

 

$

15.64

 

$

15.68

 

$

15.70

 

$

15.91

 

Market price, end of period

 

$

13.02

 

 

$

13.96

 

$

18.69

 

$

17.14

 

$

14.52

 

$

14.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(4.39

)%4

 

 

(2.82

)%

 

6.38

%

 

6.67

%

 

5.41

%

 

13.10

%

Based on market price

 

 

(3.75

)%4

 

 

(20.44

)%

 

16.29

%

 

26.08

%

 

5.59

%

 

13.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses after fees waived and paid indirectly and excluding interest expense and fees5

 

 

1.21

%6

 

 

1.13

%

 

1.04

%

 

0.97

%

 

0.89

%

 

0.91

%

Expenses after fees waived and paid indirectly

 

 

1.28

%6

 

 

1.13

%

 

1.04

%

 

0.97

%

 

0.89

%

 

0.91

%

Expenses after fees waived and before fees paid indirectly

 

 

1.28

%6

 

 

1.14

%

 

1.07

%

 

0.98

%

 

0.90

%

 

0.91

%

Total expenses

 

 

1.37

%6

 

 

1.30

%

 

1.31

%

 

1.29

%

 

1.28

%

 

1.30

%

Net investment income after fees waived and paid indirectly and before dividends to Preferred Shareholders

 

 

7.56

%6

 

 

7.12

%

 

6.89

%

 

7.23

%

 

8.04

%

 

8.09

%

Dividends to Preferred Shareholders

 

 

2.04

%6

 

 

2.12

%

 

1.83

%

 

1.26

%

 

0.62

%

 

0.54

%

Net investment income to Common Shareholders

 

 

5.52

%6

 

 

5.00

%

 

5.06

%

 

5.97

%

 

7.42

%

 

7.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

96,325

 

 

$

103,882

 

$

113,697

 

$

113,684

 

$

113,686

 

$

115,246

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

47,750

 

 

$

62,000

 

$

62,000

 

$

62,000

 

$

62,000

 

$

62,000

 

Portfolio turnover

 

 

14

%

 

 

21

%

 

71

%

 

96

%

 

23

%

 

8

%

Asset coverage per $1,000

 

$

52,932

 

 

$

66,904

 

$

78,856

 

$

70,847

 

$

70,844

 

$

71,476

 

1

Based on average shares outstanding.

2

Amount is less than $(0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

6

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

54

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Financial Highlights

BlackRock California Insured Municipal 2008 Term Trust (BFC)

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2008

 

Year Ended December 31,

 

 

(Unaudited)

 

 

2007

 

 

2006

 

 

2005

 

 

2004

 

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

15.28

 

 

$

15.41

 

$

15.86

 

$

16.76

 

$

17.19

 

$

17.34

 

Net investment income

 

 

0.27

1

 

 

0.65

 

 

0.87

 

 

0.90

 

 

0.91

 

 

0.96

 

Net realized and unrealized gain (loss)

 

 

(0.08

)

 

 

(0.11

)

 

(0.30

)

 

(0.82

)

 

(0.44

)

 

0.06

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

(0.25

)

 

(0.20

)

 

(0.10

)

 

(0.07

)

Net realized gain

 

 

 

 

 

 

 

 

 

2

 

 

 

(0.01

)

Net increase (decrease) from investment operations

 

 

0.19

 

 

 

0.54

 

 

0.32

 

 

(0.12

)

 

0.37

 

 

0.94

 

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.29

)

 

 

(0.67

)

 

(0.77

)

 

(0.77

)

 

(0.77

)

 

(1.00

)

Net realized gain

 

 

 

 

 

 

 

 

 

(0.01

)

 

(0.03

)

 

(0.09

)

Total dividends and distributions

 

 

(0.29

)

 

 

(0.67

)

 

(0.77

)

 

(0.78

)

 

(0.80

)

 

(1.09

)

Net asset value, end of period

 

$

15.18

 

 

$

15.28

 

$

15.41

 

$

15.86

 

$

16.76

 

$

17.19

 

Market price, end of period

 

$

14.97

 

 

$

15.09

 

$

15.34

 

$

15.31

 

$

16.25

 

$

17.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

1.26

%4

 

 

3.65

%

 

2.15

%

 

(0.59

)%

 

2.33

%

 

5.76

%

Based on market price

 

 

1.12

%4

 

 

2.83

%

 

5.34

%

 

(1.08

)%

 

(0.20

)%

 

10.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses after fees waived and paid indirectly

 

 

0.62

%5

 

 

0.60

%

 

0.99

%

 

1.07

%

 

1.05

%

 

1.04

%

Expenses after fees waived and before fees paid indirectly

 

 

0.62

%5

 

 

0.61

%

 

1.07

%

 

1.08

%

 

1.05

%

 

1.04

%

Total expenses

 

 

0.62

%5

 

 

0.61

%

 

1.07

%

 

1.08

%

 

1.05

%

 

1.04

%

Net investment income after fees waived and paid indirectly and before dividends to Preferred Shareholders

 

 

3.56

%5

 

 

4.28

%

 

5.60

%

 

5.55

%

 

5.37

%

 

5.51

%

Dividends to Preferred Shareholders

 

 

5

 

 

 

 

1.62

%

 

1.23

%

 

0.58

%

 

0.38

%

Net investment income to Common Shareholders

 

 

3.56

%5

 

 

4.28

%

 

3.98

%

 

4.32

%

 

4.79

%

 

5.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

157,940

 

 

$

158,991

 

$

160,367

 

$

165,097

 

$

174,408

 

$

178,854

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

 

 

$

 

$

 

$

104,550

 

$

104,550

 

$

104,550

 

Portfolio turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

15

%

Asset coverage per $1,000

 

$

 

 

$

 

$

 

$

64,497

 

$

66,714

 

$

67,776

 

1

Based on average shares outstanding.

2

Amout is less than $(0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

55

 


Financial Highlights

BlackRock California Municipal 2018 Term Trust (BJZ)

 

 

 

Six Months Ended
June 30, 2008

 

Year Ended December 31,

 

 

 

(Unaudited)

 

2007

 

2006

 

2005

 

2004

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.82

 

$

15.26

 

$

15.21

 

$

15.17

 

$

14.77

 

$

14.59

 

Net investment income

 

 

0.52

1

 

1.04

 

 

1.02

 

 

0.97

 

 

1.00

 

 

1.04

 

Net realized and unrealized gain (loss)

 

 

(0.54

)

 

(0.44

)

 

0.03

 

 

(0.01

)

 

0.21

 

 

(0.06

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.13

)

 

(0.29

)

 

(0.26

)

 

(0.18

)

 

(0.08

)

 

(0.07

)

Net realized gain

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) from investment operations

 

 

(0.16

)

 

0.31

 

 

0.79

 

 

0.78

 

 

1.13

 

 

0.91

 

Dividends to Common Shareholders from net investment income

 

 

(0.37

)

 

(0.75

)

 

(0.74

)

 

(0.74

)

 

(0.73

)

 

(0.73

)

Net asset value, end of period

 

$

14.29

 

$

14.82

 

$

15.26

 

$

15.21

 

$

15.17

 

$

14.77

 

Market price, end of period

 

$

15.04

 

$

15.40

 

$

15.94

 

$

15.19

 

$

13.89

 

$

13.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(1.23

)%3

 

1.95

%

 

5.19

%

 

5.30

%

 

8.20

%

 

6.83

%

Based on market price

 

 

0.04

%3

 

1.42

%

 

10.03

%

 

14.85

%

 

9.04

%

 

5.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses after fees waived

 

 

0.94

%4

 

0.94

%

 

0.97

%

 

0.99

%

 

1.01

%

 

1.03

%

Expenses after fees waived and before fees paid indirectly

 

 

0.94

%4

 

0.94

%

 

0.99

%

 

1.01

%

 

1.02

%

 

1.03

%

Total expenses

 

 

0.95

%4

 

0.97

%

 

0.99

%

 

1.01

%

 

1.02

%

 

1.03

%

Net investment income after fees waived and paid indirectly and before dividends to Preferred Shareholders

 

 

7.15

%4

 

7.05

%

 

6.69

%

 

6.39

%

 

6.77

%

 

7.29

%

Dividends to Preferred Shareholders

 

 

1.84

%4

 

1.96

%

 

1.73

%

 

1.17

%

 

0.56

%

 

0.51

%

Net investment income to Common Shareholders

 

 

5.31

%4

 

5.09

%

 

4.96

%

 

5.22

%

 

6.21

%

 

6.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

91,906

 

$

95,336

 

$

98,165

 

$

97,824

 

$

97,590

 

$

95,047

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

55,525

 

$

55,525

 

$

55,525

 

$

55,525

 

$

55,525

 

$

55,528

 

Portfolio turnover

 

 

 

 

7

%

 

 

 

9

%

 

9

%

 

9

%

Asset coverage per $1,000

 

$

66,393

 

$

67,935

 

$

69,214

 

$

69,056

 

$

68,945

 

$

67,796

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

56

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Financial Highlights

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

 

 

 

Six Months Ended
June 30, 2008

 

Year Ended December 31,

 

 

 

(Unaudited)

 

2007

 

2006

 

2005

 

2004

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.88

 

$

14.83

 

$

15.04

 

$

15.91

 

$

16.43

 

$

16.41

 

Net investment income

 

 

0.22

1

 

0.54

 

 

0.72

 

 

0.78

 

 

0.81

 

 

0.88

 

Net realized and unrealized gain (loss)

 

 

 

 

(0.02

)

 

(0.22

)

 

(0.67

)

 

(0.41

)

 

0.13

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

(0.21

)

 

(0.22

)

 

(0.09

)

 

(0.06

)

Net realized gain

 

 

 

 

 

 

2

 

2

 

(0.01

)

 

(0.02

)

Net increase (decrease) from investment operations

 

 

0.22

 

 

0.52

 

 

0.29

 

 

(0.11

)

 

0.30

 

 

0.93

 

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.11

)

 

(0.47

)

 

(0.50

)

 

(0.75

)

 

(0.75

)

 

(0.81

)

Net realized gain

 

 

 

 

 

 

2

 

(0.01

)

 

(0.07

)

 

(0.10

)

Total dividends and distributions

 

 

(0.11

)

 

(0.47

)

 

(0.50

)

 

(0.76

)

 

(0.82

)

 

(0.91

)

Net asset value, end of period

 

$

14.99

 

$

14.88

 

$

14.83

 

$

15.04

 

$

15.91

 

$

16.43

 

Market price, end of period

 

$

14.72

 

$

14.69

 

$

14.42

 

$

15.11

 

$

15.85

 

$

16.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

1.46

%4

 

3.60

%

 

2.07

%

 

(0.74

)%

 

1.93

%

 

5.91

%

Based on market price

 

 

0.92

%4

 

5.19

%

 

(1.21

)%

 

0.10

%

 

3.05

%

 

7.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and paid indirectly

 

 

0.61

%5

 

0.63

%

 

0.96

%

 

1.09

%

 

1.07

%

 

1.05

%

Total expenses after fees waived and before fees paid indirectly

 

 

0.61

%5

 

0.64

%

 

1.03

%

 

1.10

%

 

1.07

%

 

1.05

%

Total expenses

 

 

0.61

%5

 

0.64

%

 

1.03

%

 

1.10

%

 

1.07

%

 

1.05

%

Net investment income after fees waived and paid indirectly and before Auction Preferred Shares dividends

 

 

2.95

%5

 

3.63

%

 

4.85

%

 

5.08

%

 

5.03

%

 

5.34

%

Dividends to Preferred Shareholders

 

 

 

 

 

1.43

%

 

1.42

%

 

0.56

%

 

0.39

%

Net investment income to Common Shareholders

 

 

2.95

%5

 

3.63

%

 

3.42

%

 

3.66

%

 

4.47

%

 

4.95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

130,500

 

$

129,540

 

$

129,110

 

$

130,974

 

$

138,542

 

$

143,082

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

 

 

 

 

 

 

$

84,150

 

$

84,150

 

$

84,169

 

Portfolio turnover

 

 

30

%

 

2

%

 

 

 

 

 

 

 

6

%

Asset coverage end of period (000)

 

 

 

 

 

 

 

$

63,912

 

$

66,159

 

$

67,514

 

1

Based on average shares outstanding.

2

Amounted to less than $(0.01) per common share outstanding.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

57

 


Financial Highlights

BlackRock Florida Municipal 2020 Term Trust (BFO)

 

 

 

Six Months Ended
June 30, 2008
(Unaudited)

 

Year Ended December 31,

 

Period
September 30, 20031
through
December 31, 2003

 

 

 

 

2007

 

 

2006

 

 

2005

 

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.72

 

$

15.16

 

$

14.90

 

$

14.63

 

$

14.50

 

$

14.33

2

Net investment income

 

 

0.50

3

 

0.99

 

 

0.98

 

 

0.98

 

 

0.99

 

 

0.12

 

Net realized and unrealized gain (loss)

 

 

(0.59

)

 

(0.45

)

 

0.23

 

 

0.31

 

 

0.14

 

 

0.26

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.12

)

 

(0.31

)

 

(0.29

)

 

(0.20

)

 

(0.10

)

 

(0.01

)

Net realized gain

 

 

 

 

(0.02

)

 

 

 

(0.01

)

 

 

 

 

Net increase (decrease) from investment operations

 

 

(0.21

)

 

0.21

 

 

0.92

 

 

1.08

 

 

1.03

 

 

0.37

 

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.31

)

 

(0.61

)

 

(0.66

)

 

(0.75

)

 

(0.90

)

 

(0.15

)

Net realized gain

 

 

 

 

(0.04

)

 

 

 

(0.06

)

 

 

 

 

Total dividends and distributions

 

 

(0.31

)

 

(0.65

)

 

(0.66

)

 

(0.81

)

 

(0.90

)

 

(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

 

$

14.20

 

$

14.72

 

$

15.16

 

$

14.90

 

$

14.63

 

$

14.50

 

Market price, end of period

 

$

12.40

 

$

12.93

 

$

13.85

 

$

13.35

 

$

15.08

 

$

15.39

 

 

Total Investment Return4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(1.23

)%5

 

1.86

%

 

6.73

%

 

7.71

%

 

7.19

%

 

2.21

%5

Based on market price

 

 

(1.81

)%5

 

(2.06

)%

 

8.83

%

 

(6.76

)%

 

4.10

%

 

3.60

%5

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense and fees6

 

 

1.17

%7

 

1.16

%

 

1.18

%

 

1.24

%

 

1.21

%

 

1.02

%7

Total expenses after fees waived and paid indirectly

 

 

1.21

%7

 

1.16

%

 

1.18

%

 

1.24

%

 

1.21

%

 

1.02

%7

Total expenses after fees waived and before fees paid indirectly

 

 

1.21

%7

 

1.16

%

 

1.20

%

 

1.26

%

 

1.21

%

 

1.02

%7

Total expenses

 

 

1.21

%7

 

1.16

%

 

1.20

%

 

1.26

%

 

1.25

%

 

1.05

%7

Net investment income after fees waived and paid indirectly and before Auction Preferred Shares dividends

 

 

6.84

%7

 

6.63

%

 

6.54

%

 

6.57

%

 

6.93

%

 

3.45

%7

Dividends to Preferred Shareholders

 

 

2.02

%7

 

2.07

%

 

1.96

%

 

1.32

%

 

0.68

%

 

0.30

%7

Net investment income to Common Shareholders

 

 

4.82

%7

 

4.56

%

 

4.58

%

 

5.25

%

 

6.25

%

 

3.15

%7

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

78,974

 

$

81,896

 

$

84,300

 

$

82,875

 

$

81,391

 

$

80,655

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

42,900

 

$

48,900

 

$

48,900

 

$

48,900

 

$

48,900

 

$

48,900

 

Portfolio turnover

 

 

5

%

 

17

%

 

 

 

 

 

9

%

 

 

Asset coverage end of period (000)

 

$

71,022

 

$

66,872

 

$

68,114

 

$

67,379

 

$

66,617

 

$

66,237

 

1

Commencement of operations.

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

Based on average shares outstanding.

4

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

5

Aggregate total investment return.

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

7

Annualized.

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

58

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Financial Highlights

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

 

 

 

Six Months Ended
June 30, 2008
(Unaudited)

 

Year Ended December 31,

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

15.21

 

$

15.42

 

$

15.73

 

$

16.56

 

$

17.13

 

$

17.09

 

Net investment income

 

 

0.40

1

 

0.68

 

 

0.85

 

 

0.90

 

 

0.93

 

 

1.01

 

Net realized and unrealized loss

 

 

(0.20

)

 

(0.15

)

 

(0.33

)

 

(0.77

)

 

(0.53

)

 

(0.05

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

(0.20

)

 

(0.20

)

 

(0.10

)

 

(0.08

)

Net realized gain

 

 

 

 

 

 

 

 

(0.01

)

 

(0.01

)

Net increase (decrease) from investment operations

 

 

0.20

 

 

0.53

 

 

0.32

 

 

(0.07

)

 

0.29

 

 

0.87

 

Dividends to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.25

)

 

(0.74

)

 

(0.63

)

 

(0.75

)

 

(0.81

)

 

(0.79

)

Net realized gain

 

 

 

 

 

 

2

 

(0.01

)

 

(0.05

)

 

(0.04

)

Total dividends and distributions

 

 

(0.25

)

 

(0.74

)

 

(0.63

)

 

(0.76

)

 

(0.86

)

 

(0.83

)

Net asset value, end of period

 

$

15.16

 

$

15.21

 

$

15.42

 

$

15.73

 

$

16.56

 

$

17.13

 

Market price, end of period

 

$

14.98

 

$

15.05

 

$

14.90

 

$

15.30

 

$

16.09

 

$

16.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

1.35

%4

 

3.57

%

 

2.23

%

 

(0.34

)%

 

1.93

%

 

5.33

%

Based on market price

 

 

1.21

%4

 

6.06

%

 

1.55

%

 

(0.23

)%

 

0.03

%

 

9.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and paid indirectly

 

 

0.59

%5

 

0.60

%

 

0.91

%

 

1.05

%

 

1.03

%

 

1.03

%

Total expenses after fees waived and before fees paid indirectly

 

 

0.59

%5

 

0.60

%

 

0.97

%

 

1.06

%

 

1.03

%

 

1.03

%

Total expenses

 

 

0.59

%5

 

0.60

%

 

0.97

%

 

1.06

%

 

1.03

%

 

1.03

%

Net investment income after fees waived and paid indirectly

 

 

5.22

%5

 

4.46

%

 

5.51

%

 

5.62

%

 

5.51

%

 

5.85

%

Dividends to Preferred Shareholders

 

 

 

 

 

1.32

%

 

1.25

%

 

0.58

%

 

0.48

%

Net investment income to Common Shareholders

 

 

5.22

%5

 

4.46

%

 

4.19

%

 

4.37

%

 

4.93

%

 

5.37

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

170,666

 

$

171,167

 

$

173,533

 

$

177,132

 

$

186,424

 

$

192,801

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

 

 

 

 

 

 

$

109,550

 

$

109,550

 

$

109,550

 

Portfolio turnover

 

 

 

1

%

 

4

%

 

7

%

 

 

 

7

%

Asset coverage end of period (000)

 

 

 

 

 

 

 

$

65,433

 

$

67,549

 

$

69,000

 

1

Based on average shares outstanding.

2

Amount is less than $(0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Annualized.

6

Amount is less than 1%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

59

 


Financial Highlights

BlackRock New York Municipal 2018 Term Trust (BLH)

 

 

 

Six Months Ended
June 30, 2008

 

 

Year Ended December 31,

 

 

(Unaudited)

 

2007

 

2006

 

2005

 

2004

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

15.98

 

$

16.33

 

$

16.11

 

$

15.77

 

$

15.53

 

$

15.11

 

Net investment income

 

 

0.53

1

 

1.18

 

 

1.11

 

 

1.08

 

 

1.07

 

 

1.06

 

Net realized and unrealized gain (loss)

 

 

(0.49

)

 

(0.45

)

 

0.11

 

 

0.17

 

 

 

 

0.18

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.10

)

 

(0.28

)

 

(0.26

)

 

(0.17

)

 

(0.09

)

 

(0.08

)

Net realized gain

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

Net increase from investment operations

 

 

(0.07

)

 

0.45

 

 

0.96

 

 

1.08

 

 

0.98

 

 

1.16

 

Dividends to Common Shareholders from net investment income

 

 

(0.41

)

 

(0.80

)

 

(0.74

)

 

(0.74

)

 

(0.74

)

 

(0.74

)

Net asset value, end of period

 

$

15.50

 

$

15.98

 

$

16.33

 

$

16.11

 

$

15.77

 

$

15.53

 

Market price, end of period

 

$

15.52

 

$

16.18

 

$

15.62

 

$

15.15

 

$

14.82

 

$

14.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(0.47

)%3

 

2.89

%

 

6.26

%

 

7.21

%

 

6.71

%

 

8.19

%

Based on market price

 

 

(1.57

)%3

 

8.92

%

 

8.08

%

 

7.28

%

 

5.94

%

 

14.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and paid indirectly

 

 

0.95

%4

 

1.01

%

 

1.04

%

 

1.06

%

 

1.11

%

 

1.12

%

Total expenses after fees waived and before fees paid indirectly

 

 

0.95

%4

 

1.02

%

 

1.07

%

 

1.08

%

 

1.12

%

 

1.14

%

Total expenses

 

 

1.00

%4

 

1.02

%

 

1.07

%

 

1.08

%

 

1.12

%

 

1.14

%

Net investment income after fees waived and paid indirectly and before Auction Preferred Shares dividends

 

 

6.70

%4

 

7.34

%

 

6.84

%

 

6.73

%

 

6.91

%

 

7.03

%

Dividends to Preferred Shareholders

 

 

1.63

%4

 

1.72

%

 

1.58

%

 

1.06

%

 

0.57

%

 

0.53

%

Net investment income to Common Shareholders

 

 

5.07

%4

 

5.62

%

 

5.26

%

 

5.67

%

 

6.34

%

 

6.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

56,307

 

$

58,043

 

$

59,313

 

$

58,525

 

$

57,303

 

$

56,415

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

31,400

 

$

31,400

 

$

31,400

 

$

31,400

 

$

31,400

 

$

31,400

 

Portfolio turnover

 

 

4

%

 

6

%

 

6

%

 

12

%

 

 

 

11

%

Asset coverage end of period (000)

 

$

69,830

 

$

71,230

 

$

72,237

 

$

71,603

 

$

70,626

 

$

69,917

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

60

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Financial Highlights

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

 

 

 

Six Months Ended
June 30, 2008

 

 

Year Ended December 31,

 

 

(Unaudited)

 

2007

 

2006

 

2005

 

2004

 

2003

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.12

 

$

15.01

 

$

15.27

 

$

15.81

 

$

16.09

 

$

15.61

 

Net investment income

 

 

0.43

1

 

0.99

 

 

1.02

 

 

0.97

 

 

1.07

 

 

1.12

 

Net realized and unrealized gain (loss)

 

 

(0.70

)

 

(0.74

)

 

(0.09

)

 

(0.42

)

 

(0.37

)

 

0.30

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.11

)

 

(0.31

)

 

(0.28

)

 

(0.19

)

 

(0.09

)

 

(0.07

)

Net increase (decrease) from investment operations

 

 

(0.38

)

 

(0.06

)

 

0.65

 

 

0.36

 

 

0.61

 

 

1.35

 

Dividends to Common Shareholders from net investment income

 

 

(0.35

)

 

(0.83

)

 

(0.91

)

 

(0.90

)

 

(0.89

)

 

(0.87

)

Net asset value, end of period

 

$

13.39

 

$

14.12

 

$

15.01

 

$

15.27

 

$

15.81

 

$

16.09

 

Market price, end of period

 

$

12.89

 

$

13.55

 

$

17.43

 

$

15.85

 

$

15.70

 

$

15.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(2.74

)%3

 

(0.82

)%

 

4.09

%

 

2.39

%

 

4.21

%

 

9.33

%

Based on market price

 

 

(2.44

)%3

 

(18.04

)%

 

16.45

%

 

7.02

%

 

10.12

%

 

11.91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios Based on Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense and fees4

 

 

1.38

%5

 

1.35

%

 

1.23

%

 

1.13

%

 

1.03

%

 

1.12

%

Total expenses after fees waived and paid indirectly

 

 

1.39

%5

 

1.35

%

 

1.23

%

 

1.13

%

 

1.03

%

 

1.12

%

Total expenses after fees waived and before fees paid indirectly

 

 

1.39

%5

 

1.37

%

 

1.28

%

 

1.21

%

 

1.08

%

 

1.15

%

Total expenses

 

 

1.53

%5

 

1.55

%

 

1.51

%

 

1.52

%

 

1.47

%

 

1.54

%

Net investment income after fees waived and paid indirectly and before Auction Preferred Shares dividends

 

 

6.31

%5

 

6.82

%

 

6.73

%

 

6.28

%

 

6.74

%

 

7.09

%

Dividends to Preferred Shareholders

 

 

2.02

%5

 

2.10

%

 

1.85

%

 

1.22

%

 

0.59

%

 

0.46

%

Net investment income to Common Shareholders

 

 

4.29

%5

 

4.72

%

 

4.88

%

 

5.06

%

 

6.15

%

 

6.63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

27,100

 

$

28,560

 

$

30,306

 

$

30,801

 

$

31,857

 

$

32,435

 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

16,825

 

$

17,500

 

$

17,500

 

$

17,500

 

$

17,500

 

$

17,500

 

Portfolio turnover

 

 

24

%

 

41

%

 

7

%

 

8

%

 

5

%

 

 

Asset coverage end of period (000)

 

$

65,267

 

$

65,817

 

$

68,305

 

$

69,008

 

$

70,513

 

$

71,341

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

5

Annualized.

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

61

 


Notes to Financial Statements (Unaudited)

 

1. Significant Accounting Policies:

The BlackRock Insured Municipal 2008 Term Trust Inc. (“Insured Municipal 2008”), The BlackRock Insured Municipal Term Trust Inc. (“Insured Municipal”), The BlackRock California Insured Municipal 2008 Term Trust Inc. (“California Insured 2008”) and The BlackRock New York Insured Municipal 2008 Term Trust Inc. (“New York Insured 2008”) were organized as Maryland corporations. BlackRock Municipal 2018 Term Trust (“Municipal 2018”), BlackRock Municipal 2020 Term Trust (“Municipal 2020”), The BlackRock Strategic Municipal Trust (“Strategic Municipal”), BlackRock California Municipal 2018 Term Trust (“California 2018”), BlackRock Florida Municipal 2020 Term Trust (“Florida 2020”), BlackRock New York Municipal 2018 Term Trust (“New York 2018”) and The BlackRock Pennsylvania Strategic Municipal Trust (“Pennsylvania Strategic”) were organized as Delaware statutory trusts. The BlackRock Florida Insured Municipal 2008 Term Trust (“Florida Insured 2008”) was organized as a Massachusetts business trust. Insured Municipal 2008, Insured Municipal, Municipal 2018, Municipal 2020 and Strategic Municipal are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as diversified closed-end management investment companies. 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 1940 Act. Insured Municipal 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. Strategic Municipal and Pennsylvania Strategic are herein referred to as the Strategic Trusts. The 2008 Trusts will terminate on or about December 31, 2008. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates.

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

Valuation of Investments: Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust’s Board of Trustees (the “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and various relationships between investments. Financial futures contracts are traded on exchanges and are valued at their last sale price. Swaps are valued by quoted fair values received daily by the Trusts’ pricing service or through brokers. Short-term securities are valued at amortized cost. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by each Trust’s Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Derivative Financial Instruments: Each Trust may engage in various portfolio investment strategies to increase the return of the Trust and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security or if the counterparty does not perform under the contract.

Financial Futures Contracts: Each Trust may purchase or sell financial futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, the Trust deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Trust agrees to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Trust as unrealized gains or losses. When the contract is closed, the Trust records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Forward Interest Rate Swaps: Each Trust may enter into forward interest rate swaps. In a forward interest rate swap, the Trust and the counterparty agree to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. Changes in the value of forward interest rate swaps are recognized as unrealized gains and losses. When the agreement is closed, the Trust records a realized gain or loss in an amount equal to the value of the agreement. The Trusts generally intend to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap.

Forward Commitments and When-Issued Delayed Delivery Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. Upon making a commitment to purchase a security on a

 

 

 

 

 

 

 

 

 

 

 

 

62

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Notes to Financial Statements (continued)

 

when-issued basis, the Trusts will hold liquid assets worth at least the equivalent of the amount due.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Trusts leverage their assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the Trusts, transfers municipal securities. Other funds managed by the investment advisor may also contribute municipal securities to a TOB into which the Trust has contributed securities. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating Trust that made the transfer. The TOB Residuals held by the Trusts include the right of the Trusts (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal securities from the TOB to the Trusts. The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Trust, which typically invests the cash in additional municipal securities. The Trusts’ transfer of the municipal securities to a TOB is accounted for as a secured borrowing, therefore the municipal securities deposited into a TOB are presented in the Trust’s Schedule of Investments and the proceeds from the transaction are reported as a liability of the Trust.

Interest income from the underlying security is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Trusts. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At June 30, 2008, the aggregate value of the underlying municipal securities transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for trust certificates were as follows:

 

 

 

Underlying
Municipal
Bonds
Transferred
to TOBs

 

Liability for
Trust
Certificates

 

Range of
Interest
Rates

 

Municipal 2018

 

$

5,294,450

 

$

3,750,000

 

1.663%

 

Municipal 2020

 

 

5,294,450

 

 

3,750,000

 

1.663%

 

Strategic Municipal

 

 

22,633,706

 

 

14,249,279

 

1.608%-1.850%

 

Florida Municipal 2020

 

 

9,061,079

 

 

6,010,000

 

1.646%-1.875%

 

Pennsylvania Strategic Municipal

 

 

1,011,655

 

 

669,087

 

1.692%

 

Financial transactions executed through TOBs generally will underperform the market for fixed rate municipal bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, the Trusts’ investment in TOBs likely will adversely affect the Trusts’ net investment income and distributions to shareholders. Fluctuations in the market value of municipal securities deposited into the TOB may adversely affect the Trusts’ net asset value per share.

Zero-Coupon Bonds: The Trusts may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Segregation: In cases in which the 1940 Act, and the interpretive positions of the Securities and Exchange Commission (the “SEC”) require that each Trust segregate assets in connection with certain investments (e.g., futures) or certain borrowings, 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.

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Trust amortizes all premiums and discounts on debt securities.

Dividends and Distributions: Dividends from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to holders of Preferred Shares are accrued and determined as described in Note 4.

Income Taxes: It is each Trust’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’ U.S. federal tax returns remains open for the years ended December 31, 2004 through December 31, 2006. The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities – an amendment of FASB Statement No.133” (“ FAS 161”) was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for and how derivative instruments affect an entity’s results of operations and financial position. The impact on the Trusts’ financial statement disclosures, if any, is currently being assessed.

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

63

 


Notes to Financial Statements (continued)

 

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each of the Trusts’ Board, non-interested Trustees (“Independent Trustees”) defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Each Trust may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees in order to match its deferred compensation obligations. Investments to cover each Trust’s deferred compensation liability are included in other assets on the Statements of Assets and Liabilities.

Other: Expenses directly related to each Trust are charged to that Trust. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory and administration services. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC Financial Services Group, Inc. are principal owners of BlackRock, Inc.

The Advisor is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Advisor a monthly fee at an annual rate of 0.35% for 2008 Trusts and Insured Municipal Trust, 0.40% for the 2018 Trusts, 0.50% for the 2020 Trusts and 0.60% for the Strategic Trusts of the applicable Trust’s average weekly value of the Trusts’ net assets including proceeds from the issuance of Preferred Shares and TOBs.

The Advisor has voluntarily agreed to waive a portion of the investment advisory fee on the Strategic Trusts as a percentage of net assets including proceeds from the issuance of Preferred Shares and TOBs as follows: 0.25% for the first five years of each of the Strategic Trust’s operations from 1999 through December 31, 2004, 0.20% through December 31, 2005, 0.15% through December 31, 2006, 0.10% through December 31, 2007 and 0.05% through December 31, 2008. This amount is shown on the Statements of Operations as investment advisory fees waived.

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

The Advisor has agreed to waive its advisory fees by the amount of investment advisory fees each Trust pays to the Advisor indirectly through its investment in affiliated money market funds. This amount is shown on the Statements of Operations as fees waived by advisor. For the six months ended June 30, 2008, the amounts were as follows:

 

 

 

Fees Waived
by Advisor

 

Municipal 2018

 

$

3,930

 

Strategic Municipal

 

 

4,903

 

California Municipal 2018

 

 

5,196

 

Florida Municipal 2020

 

 

618

 

New York Municipal 2018

 

 

13,412

 

Pennsylvania Strategic Municipal

 

 

8,550

 

The Advisor has entered into a separate sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Advisor, with respect to the 2018 Trusts, 2020 Trusts and Strategic Trusts, under which the Advisor pays BFM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by the Trusts to the Advisor.

For the six months ended June 30, 2008, the Trusts reimbursed the Advisor for certain accounting services in the following amounts, which are included in accounting services in the Statements of Operations:

 

 

 

Amount

 

Municipal 2018

 

$

3,102

 

Municipal 2020

 

 

3,759

 

Strategic Municipal

 

 

1,288

 

California Municipal 2018

 

 

1,238

 

Florida Municipal 2020

 

 

1,071

 

New York Municipal 2018

 

 

738

 

Pursuant to the terms of their custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees. These credits are shown on the Statements of Operations as fees paid indirectly.

Certain officers and/or trustees of the Trusts are officers and/or directors of BlackRock, Inc. or its affiliates.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended June 30, 2008 were as follows:

 

 

 

Purchases

 

Sales

 

Insured Municipal 2008

 

$

20,084,729

 

184,506,901

 

Insured Municipal

 

 

71,812

 

24,242,294

 

Municipal 2018

 

 

13,796,779

 

11,398,197

 

Municipal 2020

 

 

13,229,971

 

15,838,484

 

Strategic Municipal

 

 

22,091,718

 

22,936,885

 

California Insured Municipal 2008

 

 

17,269

 

43,660,192

 

California Municipal 2018

 

 

3,626,579

 

 

Florida Insured Municipal 2008

 

 

50,325,092

 

34,933,416

 

Florida Municipal 2020

 

 

5,213,576

 

8,168,425

 

New York Insured Municipal 2008

 

 

279,893

 

116,112,576

 

New York Municipal 2018

 

 

3,520,708

 

7,126,089

 

Pennsylvania Strategic Municipal

 

 

10,010,741

 

12,698,280

 

 

 

 

 

 

 

 

 

 

 

 

 

64

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Notes to Financial Statements (continued)

 

4. Capital Share Transactions:

There are 200 million of $0.01 par value common shares authorized for each of the 2008 Trusts and Insured Municipal. 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 Auction Preferred Shares. At June 30, 2008, the common shares owned by affiliates of the Advisor of each Trust were as follows:

 

 

Common
Shares Owned

 

Municipal 2020

8,028

 

Florida 2020

8,028

 

During the six months ended June 30, 2008 and the year ended December 31, 2007 the following Trusts issued additional shares under their respective dividend reinvestment plans:

 

 

 

June 30, 2008

 

December 31, 2007

 

Strategic Municipal

 

6,166

 

14,017

 

Pennsylvania Strategic

 

1,436

 

2,582

 

As of June 30, 2008, the Trusts had the following series of Preferred Shares outstanding as listed in the table below. The Preferred Shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.

 

 

 

Series

 

Shares   

Insured Municipal

 

M7

 

2,000

Municipal 2018

 

W7

 

2,677

 

 

R7

 

2,677

Municipal 2020

 

M7

 

2,318

 

 

W7

 

2,318

 

 

F7

 

2,318

Strategic Municipal

 

W7

 

1,910

California 2018

 

M7

 

2,221

Florida 2020

 

F7

 

1,716

New York 2018

 

T7

 

1,256

Pennsylvania Strategic

 

W7

 

   673

On May 19, 2008, the Trusts announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

Series

 

Redemption
Date

 

Shares to be
Redeemed

 

 

Aggregate
Price

 

Insured Municipal

 

M7

 

6/24/08

 

600

 

$

15,000,000

 

Municipal 2018

 

W7

 

6/26/08

 

75

 

$

1,875,000

 

 

 

R7

 

6/27/08

 

75

 

$

1,875,000

 

Municipal 2020

 

M7

 

6/24/08

 

50

 

$

1,250,000

 

 

 

W7

 

6/26/08

 

50

 

$

1,250,000

 

 

 

F7

 

6/30/08

 

50

 

$

1,250,000

 

Strategic Municipal

 

W7

 

6/26/08

 

570

 

$

14,250,000

 

Florida 2020

 

F7

 

6/30/08

 

240

 

$

6,000,000

 

Pennsylvania Strategic

 

W7

 

6/26/08

 

27

 

$

675,000

 

The Trusts financed the Preferred Shares redemptions with cash received from TOBs.

Dividends on seven-day Preferred Shares are cumulative at a rate which is reset every seven days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the affected Trust is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares is successfully auctioned. The maximum applicable rate on the Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. During the six months ended June 30, 2008, the Preferred Shares of each Trust were successfully auctioned at each auction date until February 13, 2008. The low, high and average dividend ranges on the Preferred Shares for each Trust for the six months ended June 30, 2008 were as follows:

 

 

 

Series

 

Low

 

High

 

Average

 

 

Insured Municipal

 

M7

 

2.40

4.51

3.23

 

Municipal 2018

 

W7

 

2.60

 

4.36

 

3.32

 

 

 

 

R7

 

2.48

 

4.51

 

3.36

 

 

Municipal 2020

 

M7

 

2.48

 

4.60

 

3.39

 

 

 

 

W7

 

2.54

 

4.75

 

3.32

 

 

 

 

F7

 

2.48

 

4.60

 

3.35

 

 

Strategic Municipal

 

W7

 

2.54

 

4.72

 

3.39

 

 

California 2018

 

M7

 

2.48

 

4.51

 

3.30

 

 

Florida 2020

 

F7

 

2.48

 

4.60

 

3.50

 

 

New York 2018

 

T7

 

2.49

 

4.36

 

3.26

 

 

Pennsylvania Strategic

W7

1.70

4.36

3.19

Since February 13, 2008 the Preferred Shares of each Trust failed to clear any auctions. As a result, the Preferred Share dividend rates were reset to the maximum applicable rate, which ranged from 2.59% to 4.51%. A failed auction is not an event of default for the Trusts but it is a liquidity event for the holders of the Preferred Shares. A failed auction occurs when there are more sellers of a trust’s auction rate preferred share than buyers. It is impossible to predict how long this imbalance will last. An auction for each Trust’s Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, holders of Preferred Shares may not have the ability to sell the Preferred Shares at their liquidation preference.

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 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 Statement of Preferences/Articles Supplementary/Certificate of Designation, are not satisfied.

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

65

 


Notes to Financial Statements (concluded)

 

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

5. Capital Loss Carryforwards:

For federal income tax purposes, the following Trusts had capital loss carry-forwards at December 31, 2007, the Trusts’ last tax year-end (other than the 2020 Trusts and Strategic Trusts, each of which has a tax year-end of June 30th). These amounts may be used to offset future realized capital gains, if any:

 

 

 

 

Capital Loss
Carryforward
Amount

 

Expires

Insured Municipal 2008

 

$

1,251,338

 

2014

 

 

 

253,682

 

2015

 

 

$

1,505,020

 

 

 

 

 

 

 

 

Municipal 2018

 

$

6,633,095

 

2012

 

 

 

6,967,122

 

2014

 

 

 

889,102

 

2015

 

 

$

14,489,319

 

 

 

 

 

 

 

 

Municipal 2020

 

$

408,381

 

2013

 

 

 

524,725

 

2015

 

 

 

411,993

 

2016

 

 

$

1,345,059

 

 

 

 

 

 

 

 

Strategic Municipal

 

$

427,602

 

2012

 

 

 

1,011,077

 

2013

 

 

 

251,883

 

2016

 

 

$

1,690,562

 

 

 

 

 

 

 

 

California Insured Municipal 2008

 

$

571,000

 

2014

 

 

 

 

 

 

California Municipal 2018

 

$

999,612

 

2010

 

 

 

1,444,501

 

2012

 

 

 

588,861

 

2013

 

 

 

470,704

 

2015

 

 

$

3,503,678

 

 

 

 

 

 

 

 

Florida Insured Municipal 2008

 

$

56,392

 

2014

 

 

 

 

 

 

Florida Municipal 2020

 

$

6,394

 

2013

 

 

 

 

 

 

New York Insured Municipal 2008

 

$

214,684

 

2014

 

 

 

34

 

2015

 

 

$

214,718

 

 

 

 

 

 

 

 

New York Municipal 2018

 

$

193,442

 

2010

 

 

 

431,368

 

2011

 

 

 

590,480

 

2012

 

 

 

333,477

 

2015

 

 

$

1,548,767

 

 

 

 

 

 

 

 

Pennsylvania Strategic Municipal

 

$

133,646

 

2013

 

 

 

127,957

 

2016

 

 

$

261,603

 

 

 

 

 

 

 

 

6. Concentration Risk:

Each Trusts’ investments are concentrated in certain states, which may be affected by adverse financial, social, environmental, economic, regulatory and political factors.

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. The market value of these bonds may fluctuate for other reasons and there is no assurance that the insurer will meet its obligation.

7. Subsequent Events:

The Trusts paid an ordinary income dividend in the following amounts per share on August 1, 2008 to shareholders of record on July 15, 2008:

 

 

 

 

Common
Dividend
Per Share

 

Insured Municipal 2008

 

$

0.025500

 

Insured Municipal

 

 

0.030417

 

Municipal 2018

 

 

0.075500

 

Municipal 2020

 

 

0.062250

 

Strategic Municipal

 

 

0.062500

 

California Insured Municipal 2008

 

 

0.027500

 

California Municipal 2018

 

 

0.061250

 

Florida Insured Municipal 2008

 

 

0.005000

 

Florida Municipal 2020

 

 

0.051000

 

New York Insured Municipal 2008

 

 

0.027500

 

New York Municipal 2018

 

 

0.068750

 

Pennsylvania Strategic Municipal

 

 

0.045000

 

The dividends declared on preferred shares for the period July 1, 2008 to July 31, 2008 for the Trusts were as follows:

 

 

 

Series

 

Dividends
Declared

 

Insured Municipal

 

M7

 

113,325

 

Municipal 2018

 

W7

 

156,594

 

 

 

R7

 

158,569

 

Municipal 2020

 

M7

 

131,769

 

 

 

W7

 

135,609

 

 

 

F7

 

134,354

 

Strategic Municipal

 

W7

 

111,759

 

California 2018

 

M7

 

126,304

 

Florida 2020

 

F7

 

   99,435

 

New York 2018

 

T7

 

   80,723

 

Pennsylvania Strategic

 

W7

 

   43,799

 

 

 

 

 

 

 

 

 

 

 

 

 

66

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Important Tax Information

 

 

BlackRock Municipal 2020 Term Trust

All of the net investment income distributions paid by BlackRock Municipal 2020 Term Trust during the taxable year ended June 30, 2008 qualify as tax-exempt interest dividends for Federal income tax purposes.

Additionally, the following summarizes the taxable per share distributions paid by the fund during the taxable year ended June 30, 2008:

 

 

 

Record
Date

 

Payable
Date

 

 

Ordinary
Income

 

Common Shareholders

 

12/28/2007

 

1/14/2008

 

$

0.018776

 

Preferred Shareholders

 

 

 

 

 

 

 

 

Series M7

 

3/31/2008

 

4/8/2008

 

$

8.07728

 

Series W7

 

4/2/2008

 

4/10/2008

 

$

8.05194

 

Series F7

 

4/4/2008

 

4/14/2008

 

$

8.06123

 

 

BlackRock Strategic Municipal Trust

All of the net investment income distributions paid by BlackRock Strategic Municipal Trust during the taxable year ended June 30, 2008 qualify as tax-exempt interest dividends for Federal income tax purposes.

Additionally, the following summarizes the taxable per share distributions paid by the fund during the taxable year ended June 30, 2008:

 

 

 

Record
Date

 

Payable
Date

 

 

Ordinary
Income

 

Common Shareholders

 

12/28/2007

 

1/14/2008

 

$

0.009168

 

Preferred Shareholders

 

 

 

 

 

 

 

 

Series W7

 

4/2/2008

 

4/10/2008

 

$

7.96532

 

 

BlackRock Florida Municipal 2020 Term Trust

All of the net investment income distributions paid by BlackRock Florida Municipal 2020 Term Trust during the taxable year ended June 30, 2008 qualify as tax-exempt interest dividends for Federal income tax purposes.

Additionally, the following summarizes the taxable per share distributions paid by the fund during the taxable year ended June 30, 2008:

 

 

 

Record
Date

 

Payable
Date

 

 

Ordinary
Income

 

 

Long-Term
Capital Gains

 

Common Shareholders

 

12/14/2007

 

12/31/2007

 

$

0.000649

 

$

0.036537

 

Preferred Shareholders

 

 

 

 

 

 

 

 

 

 

 

Series F7

 

11/23/2007

 

11/26/2007

 

$

.302000

 

$

16.958000

 

 

 

11/30/2007

 

12/3/2007

 

$

.356600

 

$

20.023400

 

 

 

12/7/2007

 

12/10/2007

 

$

.293700

 

$

16.635800

 

 

BlackRock Pennsylvania Municipal Trust

All of the net investment income distributions paid by BlackRock Pennsylvania Municipal Trust during the taxable year ended June 30, 2008 qualify as tax-exempt interest dividends for Federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

67

 


Disclosure of Investment Advisory Agreement and Subadvisory Agreement

The Board of Directors or Board of Trustees, as the case may be (collectively, the “Board,” the members of which are referred to as “Directors”), of the BlackRock Insured Municipal 2008 Term Trust, Inc. (“BRM”), BlackRock Insured Municipal Term Trust, Inc. (“BMT”), BlackRock Municipal 2018 Term Trust (“BPK”), BlackRock Municipal 2020 Term Trust (“BKK”), BlackRock Strategic Municipal Trust (“BSD”), BlackRock California Insured Municipal 2008 Term Trust, Inc. (“BFC”), BlackRock California Municipal 2018 Term Trust (“BJZ”), BlackRock Florida Insured Municipal 2008 Term Trust, Inc. (“BRF”), BlackRock Florida Municipal 2020 Term Trust (“BFO”), BlackRock New York Insured Municipal 2008 Term Trust, Inc. (“BLN”), BlackRock New York Municipal 2018 Term Trust (“BLH”) and BlackRock Pennsylvania Strategic Municipal Trust (“BPS ,” and together with BLH, BLN, BFO, BRF, BJZ, BFC, BSD, BKK, BPK, BMT and BRM, the “Funds”) met in April and May 2008 to consider approving the continuation of each Fund’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Advisor”), each Fund’s investment adviser. The Board also considered the approval of each Fund’s subadvisory agreement, if applicable (each, a “Subadvisory Agreement” and, together with the “Advisory Agreement,” the “Agreements”), between the Advisor and BlackRock Financial Management, Inc. (the “Subadvisor”). The Advisor and the Subadvisor are collectively referred to herein as the “Advisors” and, together with BlackRock, Inc., “BlackRock.”

Activities and Composition of the Board

The Board of Directors of each Fund consists of thirteen individuals, eleven of whom are not “interested persons” of the Funds as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Directors”). The Directors are responsible for the oversight of the operations of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chairman of the Board is an Independent Director. The Board has established four standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee and a Performance Oversight Committee.

Advisory Agreement and Subadvisory Agreement

Upon the consummation of the combination of BlackRock, Inc.’s investment management business with Merrill Lynch & Co., Inc.’s investment management business, including Merrill Lynch Investment Managers, L.P., and certain affiliates, each Fund entered into an Advisory Agreement and a Subadvisory Agreement, each with an initial two-year term. Consistent with the 1940 Act, after the Advisory Agreement’s and Subadvisory Agreement’s respective initial two-year term, the Board is required to consider the continuation of each Fund’s Advisory Agreement and Subadvisory Agreement on an annual basis. In connection with this process, the Board assessed, among other things, the nature, scope and quality of the services provided to each Fund by the personnel of BlackRock and its affiliates, including investment advisory services, administrative services, secondary market support services, oversight of fund accounting and custody, and assistance in meeting legal and regulatory requirements. The Board also received and assessed information regarding the services provided to each Fund by certain unaffiliated service providers.

Throughout the year, the Board also considered a range of information in connection with its oversight of the services provided by BlackRock and its affiliates. Among the matters the Board considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, as well as senior management and portfolio managers’ analysis of the reasons for underperformance, if applicable; (b) fees, including advisory, administration and other fees paid to BlackRock and its affiliates by each Fund, as applicable; (c) Fund operating expenses paid to third parties; (d) the resources devoted to and compliance reports relating to each Fund’s investment objective, policies and restrictions; (e) each Fund’s compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting guidelines approved by the Board; (i) execution quality; (j) valuation and liquidity procedures; and (k) reviews of BlackRock’s business, including BlackRock’s response to the increasing scale of its business.

Board Considerations in Approving the Advisory Agreement and Subadvisory Agreement

To assist the Board in its evaluation of the Agreements, the Directors received information from BlackRock in advance of the April 22, 2008 meeting which detailed, among other things, the organization, business lines and capabilities of the Advisors, including: (a) the responsibilities of various departments and key personnel and biographical information relating to key personnel; (b) financial statements for BlackRock; (c) the advisory and/or administrative fees paid by each Fund to the Advisors, including comparisons, compiled by Lipper, Inc. (“Lipper”), an independent third party, with the management fees, which include advisory and administration fees, of funds with similar investment objectives (“Peers”); (d) the profitability of BlackRock and certain industry profitability analyses for advisers to registered investment companies; (e) the expenses of BlackRock in providing various services; (f) non-investment advisory reimbursements, if applicable, and “fallout” benefits to BlackRock; (g) economies of scale, if any, generated through the Advisors’ management of all of the BlackRock closed-end funds (the “Fund Complex”); (h) the expenses of each Fund, including comparisons of respective Fund’s expense ratios (both before and after any fee waivers) with the expense ratios of its Peers; (i) an internal comparison of management fees classified by Lipper, if applicable; and (j) each Fund’s performance for the past one-, three- and five-year periods, as applicable, as well as each Fund’s performance compared to its Peers.

The Board also considered other matters it deemed important to the approval process, where applicable, such as payments made to BlackRock or its affiliates relating to the distribution of Fund shares, services related to the valuation and pricing of Fund portfolio holdings, and direct and indirect benefits to BlackRock and its affiliates from their relationship with the Funds.

In addition to the foregoing materials, independent legal counsel to the Independent Directors provided a legal memorandum outlining, among other things, the duties of the Board under the 1940 Act, as well as the general principles of relevant law in reviewing and approving advisory contracts, the

 

 

 

 

 

 

 

 

 

 

 

 

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Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued)

requirements of the 1940 Act in such matters, an adviser’s fiduciary duty with respect to advisory agreements and compensation, and the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and the factors to be considered by boards in voting on advisory agreements.

The Independent Directors reviewed this information and discussed it with independent legal counsel prior to the meeting on April 22, 2008. At the Board meeting on April 22, 2008, BlackRock made a presentation to and responded to questions from the Board. Following the meeting on April 22, 2008, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written materials provided to the Directors prior to the meetings on May 29 and 30, 2008. At the Board meetings on May 29 and 30, 2008, BlackRock responded to further questions from the Board. In connection with BlackRock’s presentations, the Board considered each Agreement and, in consultation with independent legal counsel, reviewed the factors set out in judicial decisions and SEC statements relating to the renewal of the Agreements.

Matters Considered by the Board

In connection with its deliberations with respect to the Agreements, the Board considered all factors it believed relevant with respect to each Fund, including the following: the nature, extent and quality of the services provided by the Advisors; the investment performance of each Fund; the costs of the services to be provided and profits to be realized by the Advisors and their affiliates from their relationship with the Funds; the extent to which economies of scale would be realized as the Fund Complex grows; and whether BlackRock realizes other benefits from its relationship with the Funds.

A. Nature, Extent and Quality of the Services: In evaluating the nature, extent and quality of the Advisors’ services, the Board reviewed information concerning the types of services that the Advisors provide and are expected to provide to each Fund, narrative and statistical information concerning each Fund’s performance record and how such performance compares to each Fund’s Peers, information describing BlackRock’s organization and its various departments, the experience and responsibilities of key personnel and available resources. The Board noted the willingness of the personnel of BlackRock to engage in open, candid discussions with the Board. The Board further considered the quality of the Advisors’ investment process in making portfolio management decisions.

In addition to advisory services, the Directors considered the quality of the administrative and non-investment advisory services provided to the Funds. The Advisors and their affiliates provided each Fund with such administrative and other services, as applicable (in addition to any such services provided by others for the Funds), and officers and other personnel as are necessary for the operations of the respective Fund. In addition to investment management services, the Advisors and their affiliates provided each Fund with services such as: preparing shareholder reports and communications, including annual and semi-annual financial statements and the Funds’ web-sites; communications with analysts to support secondary market trading; assisting with daily accounting and pricing; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal and compliance support (such as helping to prepare proxy statements and responding to regulatory inquiries); and performing other Fund administrative tasks necessary for the operation of the respective Fund (such as tax reporting and fulfilling regulatory filing requirements). The Board considered the Advisors’ policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: As previously noted, the Board received performance information regarding each Fund and its Peers. Among other things, the Board received materials reflecting each Fund’s historic performance and each Fund’s performance compared to its Peers. More specifically, each Fund’s one-, three- and five-year total returns (as applicable) were evaluated relative to its Peers (including the Peers’ median performance).

The Board reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper rankings.

The Board noted that although BRM, BMT, BFC, BRF and BLN underperformed their respective Peers, each Fund has a limited life and will seek to return to investors their initial investment on a fixed termination date, whereas their respective Peers are perpetual funds. Since these Funds are approaching their termination date, they maintain a shorter duration and, all other things being equal, generally will have a lower return than their respective Peers.

The Board noted that although BSD and BPS underperformed each Fund’s respective Peers in at least two of the one-, three- and five-year periods reported, BSD and BPS outperformed each Fund’s respective Peers in at least two of such periods based on a customized performance comparison provided by BlackRock utilizing a subset of the Lipper universe which gives a greater significance to current distributions, providing a more accurate comparison.

The Board noted that in general BPK, BJZ and BLH performed better than each Fund’s respective Peers in that each Fund’s performance was at or above the median in at least two of the one-, three- and five-year periods reported.

The Board noted that in general BKK and BFO performed better than their respective Peers in that their performance was at or above the median in at least two of the one-year, three-year and since inception periods reported.

After considering this information, the Boards concluded that the performance of each Fund, in light of and after considering the other facts and circumstances applicable to each Fund, supports a conclusion that each Fund’s Agreements should be renewed.

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: In evaluating the management fees and expenses that each Fund is expected to bear, the Board considered each Fund’s current man-

 

 

 

 

 

 

 

 

 

 

 

 

 

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Disclosure of Investment Advisory Agreement and Subadvisory Agreement (concluded)

agement fee structure and each Fund’s expense ratios in absolute terms as well as relative to the fees and expense ratios of its applicable Peers. The Board, among other things, reviewed comparisons of each Fund’s gross management fees before and after any applicable reimbursements and fee waivers and total expense ratios before and after any applicable waivers with those of applicable Peers. The Board also reviewed a narrative analysis of the Peer rankings prepared by Lipper and summarized by BlackRock at the request of the Board. This summary placed the Peer rankings into context by analyzing various factors that affect these comparisons.

The Board noted that the Funds paid contractual management fees lower than or equal to the median contractual fees paid by each Fund’s respective Peers. This comparison was made without giving effect to any expense reimbursements or fee waivers.

The Board also compared the management fees charged and services provided by the Advisors to closed-end funds in general versus other types of clients (such as open-end investment companies and separately managed institutional accounts) in similar investment categories. The Board noted certain differences in services provided and costs incurred by the Advisor with respect to closed-end funds compared to these other types of clients and the reasons for such differences.

In connection with the Board’s consideration of the fees and expense information, the Board reviewed the considerable investment management experience of the Advisors and considered the high level of investment management, administrative and other services provided by the Advisors. In light of these factors and the other facts and circumstances applicable to each Fund, the Board concluded that the fees paid and level of expenses incurred by each Fund under its Agreements support a conclusion that each Fund’s Agreements should be renewed.

D. Profitability of BlackRock: The Board also considered BlackRock’s profitability in conjunction with its review of fees. The Board reviewed BlackRock’s profitability with respect to the Fund Complex and other fund complexes managed by the Advisors. In reviewing profitability, the Board recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. The Board also reviewed BlackRock’s assumptions and methodology of allocating expenses, noting the inherent limitations in allocating costs among various advisory products. The Board also recognized that individual fund or product line profitability of other advisors is generally not publicly available.

The Board recognized that profitability may be affected by numerous factors including, among other things, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Board considered BlackRock’s operating margin compared to the operating margin estimated by BlackRock for a leading investment management firm whose operations consist primarily of advising closed-end funds. The comparison indicated that BlackRock’s operating margin was approximately the same as the operating margin of such firm.

In evaluating the reasonableness of the Advisors’ compensation, the Board also considered any other revenues paid to the Advisors, including partial reimbursements paid to the Advisors for certain non-investment advisory services, if applicable. The Board noted that these payments were less than the Advisors’ costs for providing these services. The Board also considered indirect benefits (such as soft dollar arrangements) that the Advisors and their affiliates are expected to receive, which are attributable to their management of the Fund.

The Board concluded that BlackRock’s profitability, in light of all the other facts and circumstances applicable to each Fund, supports a conclusion that each Fund’s Agreements should be renewed.

E. Economies of Scale: In reviewing each Fund’s fees and expenses, the Board examined the potential benefits of economies of scale, and whether any economies of scale should be reflected in the Fund’s fee structure, for example through the use of breakpoints for the Fund or the Fund Complex. In this regard, the Board reviewed information provided by BlackRock, noting that most closed-end fund complexes do not have fund-level breakpoints because closed-end funds generally do not experience substantial growth after their initial public offering and each fund is managed independently consistent with its own investment objectives. The Board noted that only three closed-end funds in the Fund Complex have breakpoints in their fee structures. Information provided by Lipper also revealed that only one closed-end fund complex used a complex-level breakpoint structure. The Board found, based on its review of comparable funds, that each Fund’s management fee is appropriate in light of the scale of the Fund.

F. Other Factors: In evaluating fees, the Board also considered indirect benefits or profits the Advisors or their affiliates may receive as a result of their relationships with the Funds (“fall-out benefits”). The Directors, including the Independent Directors, considered the intangible benefits that accrue to the Advisors and their affiliates by virtue of their relationships with the Funds, including potential benefits accruing to the Advisors and their affiliates as a result of participating in offerings of the Funds’ shares, potentially stronger relationships with members of the broker-dealer community, increased name recognition of the Advisors and their affiliates, enhanced sales of other investment funds and products sponsored by the Advisors and their affiliates and increased assets under management which may increase the benefits realized by the Advisors from soft dollar arrangements with broker-dealers. The Board also considered the unquantifiable nature of these potential benefits.

Conclusion with Respect to the Agreements

In reviewing the Agreements, the Directors did not identify any single factor discussed above as all-important or controlling and different Directors may have attributed different weights to the various factors considered. The Directors, including the Independent Directors, unanimously determined that each of the factors described above, in light of all the other factors and all of the facts and circumstances applicable to each respective Fund, was acceptable for each Fund and supported the Directors’ conclusion that the terms of each Agreement were fair and reasonable, that each Fund’s fees are reasonable in light of the services provided to the respective Fund and that each Agreement should be approved.

 

 

 

 

 

 

 

 

 

 

 

 

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Officers and Trustees

 

Richard E. Cavanagh, Chairman of the Board and Trustee

Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee and Trustee

G. Nicholas Beckwith, III, Trustee

Richard S. Davis, Trustee

Kent Dixon, Trustee

Frank J. Fabozzi, Trustee

Kathleen F. Feldstein, Trustee

James T. Flynn, Trustee

Henry Gabbay, Trustee

Jerrold B. Harris, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee

Robert S. Salomon, Jr., Trustee

Donald C. Burke, Trust President and Chief Executive Officer

Anne F. Ackerley, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Brian P. Kindelan, Chief Compliance Officer of the Trusts

Howard Surloff, Secretary

Custodian

State Street Bank and Trust Company

Boston, MA 02101

Transfer Agents

Common Shares:

Computershare Trust Companies, N.A.

Canton, MA 02021

Preferred Shares:

For the 2018 Trusts and 2020 Trusts

     BNY Mellon Shareowner Services

     Jersey City, N.J. 07310

For the Trusts, except for the 2018 Trusts and 2020 Trusts

     Deutsche Bank Trust Company Americas

     New York, NY 10005

Accounting Agent

State Street Bank and Trust Company

Princeton, NJ 08540

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Princeton, NJ 08540

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

New York, NY 10036

Fund Address

BlackRock Closed-End Funds

c/o BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809

 

 

 

 

 

 

 

 

 

 

 

 

 

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Additional Information

 

 

Availability of Quarterly Schedule of Investments

Each Trust files their complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. Each Trust’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC.

Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

 

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Trusts’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

 

General Information

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 it 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) 441-7762.

Quarterly performance, semi-annual and annual reports and other information regarding each Trust may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding each Trust and does not, and is not intended to, incorporate BlackRock’s website into this report.

 

 

 

 

 

 

 

 

 

 

 

 

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Additional Information (continued)

 

 

Section 19 Notices

These amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and source for tax reporting purposes will depend upon each Trust’s investment experience during the remainder of its fiscal year end and may be subject to changes based on the tax regulations. The Trusts will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

 

Deposit Securities

Effective May 30, 2008, following approval by the Trusts’ Board and the applicable ratings agencies, the definition of “Deposited Securities” in the Trusts’ Statement of Preferences/Certificate of Designation/Articles Supplementary was amended in order to facilitate the redemption of the Trusts’ Preferred Shares. The following phrase was added to the definition of “Deposit Securities” found in the Statement of Preferences/Certificate of Designation/Articles Supplementary of BMT, BPK, BSD, BJZ, BLH and BPS:

; provided, however, that solely in connection with any redemption of Preferred Shares, the term Deposit Securities shall include (i) any committed financing pursuant to a credit agreement, reverse repurchase agreement facility or similar credit arrangement, in each case which makes available to the Trust, no later than the day preceding the applicable redemption date, cash in an amount not less than the aggregate amount due to Holders by reason of the redemption of their shares of Preferred Shares on such redemption date; and (ii) cash amounts due and payable to the Trust out of a sale of its securities if such cash amount is not less than the aggregate amount due to Holders by reason of the redemption of their shares of Preferred Shares on such redemption date and such sale will be settled not later than the day preceding the applicable redemption date.

The following sentence was added to the optimal redemption section found in the Statement of Preferences/Certificate of Designation/Articles Supplementary of BKK and BFO:

For the purposes of this section, the term “liquid securities” shall include:

(i) any committed financing pursuant to a credit agreement, reverse repurchase agreement facility or similar credit arrangement, in each case which makes available to the Trust, no later than the day preceding the applicable redemption date, cash in an amount not less than the aggregate amount due to Holders by reason of the redemption of their shares of Preferred Shares on such redemption date; and (ii) cash amounts due and payable to the Trust out of a sale of its securities if such cash amount is not less than the aggregate amount due to Holders by reason of the redemption of their shares of Preferred Shares on such redemption date and such sale will be settled not later than the day preceding the applicable redemption date.

 

 

 

 

 

 

 

 

 

 

 

 

 

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Additional Information (concluded)

 

 

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively,“Clients”) and to safeguarding their nonpublic personal information.The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal nonpublic information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to nonaffiliated third parties any nonpublic information about its Clients, except as permitted by law or as necessary to service Client accounts. These nonaffiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublic personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

 

 

 

 

 

 

 

 

 

 

 

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This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 411-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s website at http://www.sec.gov. Information about how each Trust voted proxies relating to securities held in each Trust’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

#CEF-SEMI-4-0608

 

 

 



Item 2 –     Code of Ethics – Not Applicable to this semi-annual report
   
Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report
   
Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report
   
Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
   
Item 6 – Investments
  (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
   
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report
   
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to this semi-annual report
   
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
   
Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.
   
Item 11 – Controls and Procedures
   
11(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
   
11(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
   
Item 12 – Exhibits attached hereto
   
12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report
   
12(a)(2) – Certifications – Attached hereto
   
12(a)(3) – Not Applicable
   
12(b) – Certifications – Attached hereto
   



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

BlackRock Municipal 2018 Term Trust

By:      /s/ Donald C. Burke  
  Donald C. Burke
  Chief Executive Officer of
  BlackRock Municipal 2018 Term Trust

Date: August 22, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:      /s/ Donald C. Burke  
  Donald C. Burke
  Chief Executive Officer (principal executive officer) of
  BlackRock Municipal 2018 Term Trust

Date: August 22, 2008

By:      /s/ Neal J. Andrews  
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal 2018 Term Trust

Date: August 22, 2008