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:      811-21178

BLACKROCK INSURED MUNICIPAL INCOME TRUST


(Exact name of registrant as specified in charter)

 

100 BELLEVUE PARKWAY, WILMINGTON, DE 19809


(Address of principal executive offices)       (Zip code)

 

Robert S. Kapito, President

BLACKROCK ADVISORS, INC.

40 EAST 52ND STREET, NEW YORK, NY 10022


(Name and address of agent for service)

 

Registrant's telephone number, including area code:      302 797-2162

Date of fiscal year end:      August 31, 2004

Date of reporting period:   February 29, 2004


ITEM 1. REPORTS TO SHAREHOLDERS.

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

FIXED INCOME           LIQUIDITY           EQUITIES           ALTERNATIVES           BLACKROCK SOLUTIONS

BlackRock
Closed-End Funds
Semi-Annual Report

FEBRUARY 29, 2004 (UNAUDITED)

BlackRock Insured Municipal Income Trust (BYM)

BlackRock Municipal Bond Trust (BBK)

BlackRock Municipal Income Trust II (BLE)

BlackRock California Insured Municipal Income Trust (BCK)

BlackRock California Municipal Bond Trust (BZA)

BlackRock California Municipal Income Trust II (BCL)

BlackRock Florida Insured Municipal Income Trust (BAF)

BlackRock Florida Municipal Bond Trust (BIE)

BlackRock Maryland Municipal Bond Trust (BZM)

BlackRock New Jersey Municipal Bond Trust (BLJ)

BlackRock New York Insured Municipal Income Trust (BSE)

BlackRock New York Municipal Bond Trust (BQH)

BlackRock New York Municipal Income Trust II (BFY)

BlackRock Virginia Municipal Bond Trust (BHV)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


TABLE OF CONTENTS

Letter to Shareholders      
1
Trust Summaries      
2
Portfolios of Investments      
16
Financial Statements   
      Statements of Assets and Liabilities      
40
      Statements of Operations      
43
      Statements of Changes in Net Assets      
46
Financial Highlights      
52
Notes to Financial Statements      
66
Dividend Reinvestment Plans      
72
Additional Information      
72


Privacy Principles of the Trusts

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

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

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



LETTER TO SHAREHOLDERS

February 29, 2004

Dear Shareholder:

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

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

The following table shows the Trusts’ current yields, tax-equivalent yields, closing market prices per share and net asset values (“NAV”) per share as of February 29, 2004.

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

BlackRock Insured Municipal Income Trust (BYM)  
6.38%
9.81%
$14.70   
$15.31  
BlackRock Municipal Bond Trust (BBK)  
6.91
10.62
15.01
15.69
BlackRock Municipal Income Trust II (BLE)  
6.92
10.64
14.53
14.98
BlackRock California Insured Municipal Income Trust (BCK)  
6.28
9.66
14.34
14.82
BlackRock California Municipal Bond Trust (BZA)  
6.72
10.33
14.23
15.22
BlackRock California Municipal Income Trust II (BCL)  
6.98
10.74
13.96
14.41
BlackRock Florida Insured Municipal Income Trust (BAF)  
6.02
9.26
14.95
15.03
BlackRock Florida Municipal Bond Trust (BIE)  
6.21
9.55
15.04
15.77
BlackRock Maryland Municipal Bond Trust (BZM)  
5.46
8.40
15.69
15.61
BlackRock New Jersey Municipal Bond Trust (BLJ)  
6.32
9.72
14.93
15.33
BlackRock New York Insured Municipal Income Trust (BSE)  
6.14
9.44
14.66
15.08
BlackRock New York Municipal Bond Trust (BQH)  
6.37
9.80
14.52
15.53
BlackRock New York Municipal Income Trust II (BFY)  
6.53
10.05
14.47
14.91
BlackRock Virginia Municipal Bond Trust (BHV)  
5.30
8.15
16.40
16.00

1 Yields are based on closing market price. Tax-equivalent yield assumes the maximum Federal tax rate of 35%.

BlackRock, Inc. (“BlackRock”), a world leader in asset management, has a proven commitment to the municipal bond market. As of December 31, 2003, BlackRock managed approximately $18 billion in municipal bonds, including six open-end and 37 closed-end municipal bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world’s largest institutional investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly owned subsidiary of BlackRock.

On behalf of BlackRock, we thank you for your continued trust and assure you that we remain committed to excellence in managing your assets.

Sincerely,

     

 
Laurence D. Fink 
Chief Executive Officer 
BlackRock Advisors, Inc. 
  Ralph L. Schlosstein
President
BlackRock Advisors, Inc.

    
    
    

1


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock Insured Municipal Income Trust (BYM)

Trust Information

Symbol on New York Stock Exchange:   BYM
Initial Offering Date:   October 31, 2002
Closing Market Price as of 2/29/04:   $14.70
Net Asset Value as of 2/29/04:   $15.31
Yield on Closing Market Price as of 2/29/04 ($14.70):1   6.38%
Current Monthly Distribution per Common Share:2   $ 0.078125
Current Annualized Distribution per Common Share:2   $ 0.937500
Leverage as of 2/29/04:3   36%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.70   $13.51   8.81%   $14.84   $13.39  
NAV   $15.31   $13.64   12.24%  
$15.33
  $13.51 

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Transportation  
27%
33%
 
Water & Sewer  
24
19
 
Tobacco  
10
10
 
City, County & State  
9
12
 
Power  
8
9
 
Lease Revenue  
6
3
 
Tax Revenue  
5
6
 
Education  
4
1
 
Hospitals  
4
2
 
Industrial & Pollution Control  
3
2
 
Housing  
3
 

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
83%
83%
 
A  
4
7
 
BBB/Baa  
13
 
10
 

4 Using the higher of Standard & Poor’s (“S&P’s”), Moody’s Investors Service (“Moody’s”) or Fitch Ratings (“Fitch’s”) rating.

2


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock Municipal Bond Trust (BBK)

Trust Information

Symbol on New York Stock Exchange:   BBK  
Initial Offering Date:   April 30, 2002  
Closing Market Price as of 2/29/04:   $15.01  
Net Asset Value as of 2/29/04:   $15.69  
Yield on Closing Market Price as of 2/29/04 ($15.01):1   6.91%  
Current Monthly Distribution per Common Share:2   $ 0.086375  
Current Annualized Distribution per Common Share:2   $ 1.036500
Leverage as of 2/29/04:3   36%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $15.01   $13.66   9.88%   $15.25   $13.65  
NAV   $15.69   $14.12   11.12%  
$15.73
  $14.02 

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Hospitals  
19%
 
20%
 
Industrial & Pollution Control  
19
 
26
 
City, County & State  
12
 
6
 
Housing  
10
 
14
 
Tobacco  
10
 
9
 
Transportation  
8
 
9
 
Tax Revenue  
6
 
5
 
Lease Revenue  
5
 
 
Power  
3
 
3
 
Education  
2
 
2
 
Water & Sewer  
1
 
1
 
Other  
5
5
 

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
25%
27%
 
AA/Aa  
5
 
A  
20
23
 
BBB/Baa  
39
32
 
B  
5
4
 
Not Rated5  
11
9
 


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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $18,706,918 representing 8.2% of the Trust’s long-term investments.

3


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock Municipal Income Trust II (BLE)

Trust Information

Symbol on American Stock Exchange:   BLE  
Initial Offering Date:   July 30, 2002  
Closing Market Price as of 2/29/04:   $14.53  
Net Asset Value as of 2/29/04:   $14.98  
Yield on Closing Market Price as of 2/29/04 ($14.53):1   6.92%  
Current Monthly Distribution per Common Share:2   $ 0.08375  
Current Annualized Distribution per Common Share:2   $ 1.00500
Leverage as of 2/29/04:3   38%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.53   $13.11   10.83%   $14.72   $13.12  
NAV   $14.98   $13.28   12.80%  
$15.02
  $13.17

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Hospitals  
22%
 
22%
 
Industrial & Pollution Control  
19
 
18
 
City, County & State  
15
 
10
 
Tobacco  
10
 
9
 
Transportation  
9
 
12
 
Housing  
6
 
12
 
Tax Revenue  
6
 
7
 
Lease Revenue  
5
 
 
Water & Sewer  
5
 
6
 
Power  
2
 
2
 
Education  
1
2
 

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
24%
28%
 
AA/Aa  
7
7
 
A  
14
20
 
BBB/Baa  
36
27
 
B  
4
4
 
CCC/Caa  
2
2
 
Not Rated5  
13
12
 


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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $14,048,640 representing 2.7% of the Trust’s long-term investments.

4


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock California Insured Municipal Income Trust (BCK)

Trust Information

Symbol on the New York Stock Exchange:   BCK  
Initial Offering Date:   October 31, 2002  
Closing Market Price as of 2/29/04:   $14.34  
Net Asset Value as of 2/29/04:   $14.82  
Yield on Closing Market Price as of 2/29/04 ($14.34):1   6.28%  
Current Monthly Distribution per Common Share:2   $ 0.075  
Current Annualized Distribution per Common Share:2   $ 0.900
Leverage as of 2/29/04:3   37%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.34   $13.01   10.22%   $14.54   $13.03  
NAV   $14.82   $13.09   13.22%  
$14.83
 $12.94
 

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Water & Sewer  
30%
30%
 
Education  
24
23
 
Tobacco  
11
10
 
Power  
10
10
 
Lease Revenue  
10
10
 
City, County & State  
9
7
 
Transportation  
4
4
 
Housing  
2
 
2
 
Tax Revenue  
 
4
 

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
83%
84%
 
A  
6
6
 
BBB/Baa  
11
10


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

5


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock California Municipal Bond Trust (BZA)

Trust Information

Symbol on New York Stock Exchange:   BZA  
Initial Offering Date:   April 30, 2002  
Closing Market Price as of 2/29/04:   $14.23  
Net Asset Value as of 2/29/04:   $15.22  
Yield on Closing Market Price as of 2/29/04 ($14.23):1   6.72%  
Current Monthly Distribution per Common Share:2   $ 0.079656  
Current Annualized Distribution per Common Share:2   $ 0.955872
Leverage as of 2/29/04:3   37%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.23   $13.15   8.21%   $14.52   $13.13  
NAV   $15.22   $13.71   11.01%   $15.23   $13.59

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Education  
25%
24%
 
Hospitals  
18
17
 
Housing  
14
15
 
Tobacco  
12
11
 
City, County & State  
9
12
 
Lease Revenue  
7
1
 
Transportation  
5
5
 
Water & Sewer  
3
3
 
Industrial & Pollution Control  
2
2
 
Power  
5
 
Other  
5
5

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
23%
23%
 
AA/Aa  
4
 
A  
20
31
 
BBB/Baa  
31
24
 
B  
2
2
 
Not Rated5  
20
20


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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $10,224,816 representing 13.4% of the Trust’s long-term investments.

6


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock California Municipal Income Trust II (BCL)

Trust Information

Symbol on American Stock Exchange:   BCL  
Initial Offering Date:   July 30, 2002  
Closing Market Price as of 2/29/04:   $13.96  
Net Asset Value as of 2/29/04:   $14.41  
Yield on Closing Market Price as of 2/29/04 ($13.96):1   6.98%  
Current Monthly Distribution per Common Share:2   $ 0.08125  
Current Annualized Distribution per Common Share:2   $ 0.97500
Leverage as of 2/29/04:3   38%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $13.96   $13.01   7.30%   $13.99   $13.00  
NAV   $14.41   $12.76   12.93%   $14.43   $12.62

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
City, County & State  
27%
25%
 
Hospitals  
13
13
 
Education  
11
19
 
Tobacco  
11
10
 
Lease Revenue  
10
5
 
Transportation  
10
9
 
Housing  
8
9
 
Power  
5
5
 
Water & Sewer  
4
4
 
Industrial & Pollution Control  
1
1

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
37%
47%
 
AA/Aa  
5
 
A  
14
19
 
BBB/Baa  
23
13
 
B  
1
1
 
Not Rated5  
20
20


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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $8,528,630 representing 4.7% of the Trust’s long-term investments.

7


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock Florida Insured Municipal Income Trust (BAF)

Trust Information

Symbol on New York Stock Exchange:   BAF  
Initial Offering Date:   October 31, 2002  
Closing Market Price as of 2/29/04:   $14.95  
Net Asset Value as of 2/29/04:   $15.03  
Yield on Closing Market Price as of 2/29/04 ($14.95):1   6.02%  
Current Monthly Distribution per Common Share:2   $ 0.075  
Current Annualized Distribution per Common Share:2   $ 0.900
Leverage as of 2/29/04:3   37%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.95   $13.20   13.26%   $15.07   $13.31  
NAV   $15.03   $13.74   9.39%   $15.03   $13.60

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Tax Revenue  
22%
22%
 
City, County & State  
22
25
 
Education  
16
16
 
Power  
12
13
 
Transportation  
8
5
 
Water & Sewer  
8
6
 
Hospital  
7
8
 
Tobacco  
4
4
 
Housing  
1
1

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
83%
82%
 
AA/Aa  
3
4
 
A  
4
4
 
BBB/Baa  
5
5
 
Not Rated5  
5
5


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

5 The investment advisor had deemed all of these non-rated securities to be of investment grade quality at the time of purchase.

8


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock Florida Municipal Bond Trust (BIE)

Trust Information

Symbol on New York Stock Exchange:   BIE  
Initial Offering Date:   April 30, 2002  
Closing Market Price as of 2/29/04:   $15.04  
Net Asset Value as of 2/29/04:   $15.77  
Yield on Closing Market Price as of 2/29/04 ($15.04):1   6.21%  
Current Monthly Distribution per Common Share:2   $ 0.077808  
Current Annualized Distribution per Common Share:2   $ 0.933696
Leverage as of 2/29/04:3   36%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $15.04   $13.55   11.00%   $15.09   $13.50  
NAV   $15.77   $14.52   8.61%   $15.77   $14.41

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Hospitals  
24%
24%
 
City, County & State  
18
14
 
Tax Revenue  
16
16
 
Power  
10
12
 
Education  
8
7
 
Water & Sewer  
7
7
 
Lease Revenue  
5
4
 
Transportation  
4
4
 
Housing  
2
2
 
Industrial & Pollution Control  
2
2
 
Tobacco  
4
 
Other  
4
4

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
40%
41%
 
AA/Aa  
17
17
 
A  
23
21
 
BBB/Baa  
3
7
 
Not Rated5  
17
14


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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $3,223,860 representing 4% of the Trust’s long-term investments.

9


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock Maryland Municipal Bond Trust (BZM)

Trust Information

Symbol on American Stock Exchange:   BZM  
Initial Offering Date:   April 30, 2002  
Closing Market Price as of 2/29/04:   $15.69  
Net Asset Value as of 2/29/04:   $15.61  
Yield on Closing Market Price as of 2/29/04 ($15.69):1   5.46%  
Current Monthly Distribution per Common Share:2   $ 0.07135  
Current Annualized Distribution per Common Share:2   $ 0.85620
Leverage as of 2/29/04:3   36%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $15.69   $13.90   12.88%   $15.69   $13.73  
NAV   $15.61   $14.36   8.70%   $15.61   $14.24

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Education  
24%
26%
 
Hospitals  
17
17
 
City, County & State  
13
11
 
Water & Sewer  
12
12
 
Transportation  
9
9
 
Lease Revenue  
8
8
 
Power  
5
5
 
Housing  
4
4
 
Tobacco  
4
3
 
Other  
4
5

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
35%
34%
 
AA/Aa  
9
12
 
A  
36
36
 
BBB/Baa  
11
11
 
Not Rated5  
9
7


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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $2,149,240 representing 4.5% of the Trust’s long-term investments.

10


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock New Jersey Municipal Bond Trust (BLJ)

Trust Information

Symbol on American Stock Exchange:   BLJ  
Initial Offering Date:   April 30, 2002  
Closing Market Price as of 2/29/04:   $14.93  
Net Asset Value as of 2/29/04:   $15.33  
Yield on Closing Market Price as of 2/29/04 ($14.93):1   6.32%  
Current Monthly Distribution per Common Share:2   $ 0.078582  
Current Annualized Distribution per Common Share:2   $ 0.942984
Leverage as of 2/29/04:3   37%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.93   $13.64   9.46%   $14.98   $13.65  
NAV   $15.33   $13.77   11.33%   $15.37   $13.66

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Hospitals  
26%
24%
 
Transportation  
17
17
 
Tobacco  
11
11
 
City, County & State  
10
5
 
Housing  
9
15
 
Tax Revenue  
6
5
 
Education  
5
5
 
Lease Revenue  
4
5
 
Power  
4
5
 
Industrial & Pollution Control  
4
4
 
Other  
4
4

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
27%
28%
 
A  
30
31
 
BBB/Baa  
33
33
 
B  
4
4
 
Not Rated5  
6
4


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

5 The investment advisor has deemed all of these non-rated securities to be of investment grade quality.

11


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock New York Insured Municipal Income Trust (BSE)

Trust Information

Symbol on New York Stock Exchange:   BSE  
Initial Offering Date:   October 31, 2002  
Closing Market Price as of 2/29/04:   $14.66  
Net Asset Value as of 2/29/04:   $15.08  
Yield on Closing Market Price as of 2/29/04 ($14.66):1   6.14%  
Current Monthly Distribution per Common Share:2   $ 0.075  
Current Annualized Distribution per Common Share:2   $ 0.900
Leverage as of 2/29/04:3   37%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.66   $13.28   10.39%   $14.83   $13.19  
NAV   $15.08   $13.45   12.12%   $15.10   $13.31

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Transportation  
33%
33%
 
Education  
28
29
 
Hospitals  
13
14
 
Tobacco  
11
10
 
Tax Revenue  
10
7
 
Water & Sewer  
3
3
 
Lease Revenue  
1
4
 
Housing  
1

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
81%
82%
 
AA/Aa  
2
2
 
A  
9
9
 
BBB/Baa  
8
7


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

12


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock New York Municipal Bond Trust (BQH)

Trust Information

Symbol on New York Stock Exchange:   BQH  
Initial Offering Date:   April 30, 2002  
Closing Market Price as of 2/29/04:   $14.52  
Net Asset Value as of 2/29/04:   $15.53  
Yield on Closing Market Price as of 2/29/04 ($14.52):1   6.37%  
Current Monthly Distribution per Common Share:2   $ 0.077099  
Current Annualized Distribution per Common Share:2   $ 0.925188
Leverage as of 2/29/04:3   37%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.52   $13.35   8.76%   $14.60   $13.35  
NAV   $15.53   $14.15   9.75%   $15.57   $14.04

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Transportation  
13%
14%
 
Education  
12
12
 
Tobacco  
12
11
 
Hospitals  
11
11
 
City, County & State  
10
10
 
Housing  
9
9
 
Water & Sewer  
9
9
 
Tax Revenue  
8
8
 
Industrial & Pollution Control  
5
4
 
Lease Revenue  
4
5
 
Power  
3
3
 
Other  
4
4

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
21%
21%
 
AA/Aa  
25
26
 
A  
38
38
 
BBB/Baa  
7
7
 
B  
1
 
CCC/Caa  
4
4
 
Not Rated5  
4
4


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

5 The investment advisor has deemed all of these non-rated securities to be of investment grade quality.

13


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock New York Municipal Income Trust II (BFY)

Trust Information

Symbol on American Stock Exchange:   BFY  
Initial Offering Date:   July 30, 2002  
Closing Market Price as of 2/29/04:   $14.47  
Net Asset Value as of 2/29/04:   $14.91  
Yield on Closing Market Price as of 2/29/04 ($14.47):1   6.53%  
Current Monthly Distribution per Common Share:2   $ 0.07875  
Current Annualized Distribution per Common Share:2   $0.94500
Leverage as of 2/29/04:3   38%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $14.47   $13.12   10.29%   $14.49   $13.11  
NAV   $14.91   $13.36   11.60%   $14.94   $13.24

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Education  
21%
23%
 
Transportation  
21
21
 
Tobacco  
11
10
 
Industrial & Pollution Control  
11
9
 
Hospitals  
9
9
 
City, County & State  
9
8
 
Tax Revenue  
9
9
 
Water & Sewer  
5
5
 
Housing  
3
5
 
Power  
1
1

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
16%
21%
 
AA/Aa  
46
45
 
A  
30
27
 
BBB/Baa  
4
4
 
B  
1
 
CCC/Caa  
3
3


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

14


TRUST SUMMARIES (unaudited)
FEBRUARY 29, 2004


BlackRock Virginia Municipal Bond Trust (BHV)

Trust Information

Symbol on American Stock Exchange:   BHV  
Initial Offering Date:   April 30, 2002  
Closing Market Price as of 2/29/04:   $16.40  
Net Asset Value as of 2/29/04:   $16.00  
Yield on Closing Market Price as of 2/29/04 ($16.40):1   5.30%  
Current Monthly Distribution per Common Share:2   $ 0.072428  
Current Annualized Distribution per Common Share:2    $ 0.869136
Leverage as of 2/29/04:3   36%

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

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

          3 As a percentage of managed assets (as defined herein).

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

    2/29/04   8/31/03   Change   High   Low  
Market Price   $16.40   $14.40   13.89%   $17.25   $14.30  
NAV   $16.00   $14.46   10.65%   $16.00   $14.35

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

Sector Breakdown

Sector   February 29, 2004   August 31, 2003  
Water & Sewer  
19%
19%
 
City, County & State  
17
17
 
Transportation  
17
16
 
Hospitals  
15
19
 
Housing  
12
13
 
Education  
5
5
 
Lease Revenue  
4
4
 
Tobacco  
4
3
 
Industrial & Pollution Control  
3
 
Other  
4
4

Credit Breakdown4

Credit Rating   February 29, 2004   August 31, 2003  
AAA/Aaa  
47%
47%
 
AA/Aa  
16
16
 
A  
15
21
 
BBB/Baa  
7
3
 
Not Rated5  
15
13


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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2004, the market value of these securities was $4,196,460 representing 11.2% of the Trust’s long-term investments.

15


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock Insured Municipal Income Trust (BYM)

        Principal                
        Amount           Option Call    
    Rating1   (000)  
Description
      Provisions2  
Value
 

            LONG-TERM INVESTMENTS—153.2%            
            Alabama—11.5%            
    AAA   $40,000 3   Jefferson Cnty. Swr. Rev., Ser. D, 5.00%, 8/01/12, FGIC       N/A   $ 45,924,880  

            California—40.1%            
    AAA   19,530   California, GO, 5.00%, 2/01/31, MBIA       02/13 @ 100   20,302,411  
    A-   14,000   California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/22       05/12 @ 101   14,914,620  
            California Infrastructure & Econ. Dev., Bay Area Toll Brdgs., Ser. A, AMBAC,            
    AAA   17,000   5.00%, 7/01/33       07/13 @ 100   17,844,220  
    AAA   10,000   5.00%, 7/01/36       07/13 @ 100   10,496,600  
            Golden St. Tobacco Sec. Corp.,            
    BBB   6,500   Ser. A-1, 6.625%, 6/01/40       06/13 @ 100   6,212,570  
    AAA   2,195   Ser. B, 5.00%, 6/01/38, AMBAC       06/13 @ 100   2,262,123  
    AAA   22,500   Ser. B, 5.00%, 6/01/43, FSA       06/13 @ 100   23,119,650  
    AAA   5,000   Los Angeles Dept. of Wtr. & Pwr., Pwr. Sys. Rev., Ser. A-2, 5.00%, 7/01/27, MBIA       07/13 @ 100   5,248,300  
    AAA   5,000   Los Angeles Unified Sch. Dist., Ser. A, 5.00%, 1/01/28, MBIA       07/13 @ 100   5,244,400  
    AAA   17,500   Met. Wtr. Dist. Southern California, Ser. B-1, 5.00%, 10/01/33, FGIC       10/13 @ 100   18,388,825  
            San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, MBIA,     
    AAA   53,000   Zero Coupon, 1/15/31       No Opt. Call   13,484,790  
    AAA   48,690   Zero Coupon, 1/15/32       No Opt. Call   11,740,620  
    AAA   10,910   Univ. of California, Ser. O, 5.00%, 9/01/28, FGIC       09/10 @ 101   11,414,151  

                            160,673,280  

            Georgia—7.2%            
            Atlanta Wtr. & Wstwtr., Ser. A,            
    AAA   9,555   5.00%, 11/01/38, FGIC       05/09 @ 101   9,880,921  
    AAA   8,145   5.00%, 11/01/39, MBIA       05/12 @ 100   8,466,402  
    Baa1   10,000   De Kalb Cnty. Dev. Auth., PCR, General Mtrs. Corp. Proj., 6.00%, 3/15/21       12/12 @ 101   10,532,600  

                        28,879,923  

            Illinois—10.6%            
    AAA   11,550   Chicago Spec. Transp., 5.25%, 1/01/31, AMBAC       01/11 @ 101   12,241,845  
    AAA   9,150   Chicago Wtr., 5.00%, 11/01/31, AMBAC       11/11 @ 100   9,449,662  
            Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., MBIA,            
    AAA   10,000   Ser. A, Zero Coupon, 12/15/25       No Opt. Call   3,312,000  
    AAA   30,000   Ser. A, Zero Coupon, 12/15/29       No Opt. Call   8,028,300  
    AAA   25,000   Ser. A, Zero Coupon, 6/15/35       No Opt. Call   4,940,500  
    AAA   15,000   Ser. B, Zero Coupon, 6/15/28       No Opt. Call   4,344,750  

                        42,317,057  

            Indiana—2.5%            
    AAA   9,400   New Albany-Floyd Cnty. Sch. Bldg. Corp., 5.125%, 1/15/27, FGIC       07/12 @ 100   9,860,506  

            Massachusetts—10.9%            
            Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A,            
    AAA   16,735 4   5.00%, 1/01/37, MBIA       01/07 @ 102   17,094,468  
    AAA   26,000   5.00%, 1/01/39, AMBAC       01/09 @ 101   26,639,340  

                        43,733,808  

            Michigan—1.3%            
    AAA   5,000   Detroit City Sch. Dist., GO, Ser. A, 5.125%, 5/01/31, FSA       05/12 @ 100   5,257,250  

            Nevada—7.2%            
    AAA   6,000   Reno Transp. Proj., 5.125%, 6/01/32, AMBAC       06/12 @ 100   6,285,900  
            Truckee Meadows Wtr. Auth., Ser. A, FSA,            
    AAA   10,000   5.00%, 7/01/25       07/11 @ 100   10,442,100  
    AAA   6,500   5.125%, 7/01/30       07/11 @ 100   6,808,815  
    AAA   5,000   5.25%, 7/01/34       07/11 @ 100   5,286,100  

                        28,822,915  

            New Jersey—3.2%            
            Tobacco Settlement Fin. Corp.,            
    BBB   2,000   6.125%, 6/01/24       06/13 @ 100   1,997,960  
    BBB   10,670   7.00%, 6/01/41       06/13 @ 100   10,763,363  

                       
12,761,323
 

See Notes to Financial Statements.

16



BlackRock Insured Municipal Income Trust (BYM) (continued)

        Principal                
        Amount           Option Call    
    Rating1   (000)  
Description
      Provisions2  
Value
 

            New York—2.9%            
    AAA   $11,000   Triborough Brdg. & Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA       11/12 @ 100   $ 11,555,830  

                     Pennsylvania—8.2%            
    BBB+   5,000   Lebanon Cnty. Hlth. Facs. Auth., Good Samaritan Hosp. Proj., 6.00%, 11/15/35       11/12 @ 101   5,150,250  
    AAA   4,560   Pennsylvania Tpke. Comm., 5.00%, 7/15/41, AMBAC       07/11 @ 101   4,754,803  
            Philadelphia Gas Wks., FSA,            
    AAA   5,200   Ser. 3, 5.125%, 8/01/31       08/11 @ 100   5,429,528  
    AAA   16,625   Ser. 4, 5.00%, 8/01/32       08/13 @ 100   17,365,478  

                        32,700,059  

            Rhode Island—0.8%            
    BBB   3,510   Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42       06/12 @ 100   3,212,317  

            South Carolina—14.2%            
    AAA   5,000   So. Carolina Pub. Svc. Auth., Ser. B, 5.50%, 1/01/36, FSA       01/12 @ 100   5,437,150  
            So. Carolina Transp. Infrastructure Bank, AMBAC,            
    AAA   9,000 3   Ser. A, 5.00%, 10/01/11       N/A   10,416,420  
    AAA   12,750   Ser. A, 5.00%, 10/01/33       10/12 @ 100   13,312,403  
    AAA   12,660   Ser. B, 5.125%, 10/01/26       10/11 @ 100   13,405,547  
    BBB   15,385   Tobacco Settlement Rev. Mgmt. Auth., Ser. B, 6.375%, 5/15/28       05/11 @ 101   14,506,055  

                        57,077,575  

            South Dakota—1.0%            
    BBB   4,165   Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32       06/12 @ 101   3,978,158  

            Tennessee—3.5%            
            Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, FSA,            
    AAA   11,705   Zero Coupon, 1/01/22       01/13 @ 59.566   4,466,862  
    AAA   9,260   Zero Coupon, 1/01/23       01/13 @ 56.016   3,308,228  
    AAA   8,500   Zero Coupon, 1/01/24       01/13 @ 52.749   2,844,185  
    AAA   6,850   Zero Coupon, 1/01/25       01/13 @ 49.712   2,153,982  
    AAA   5,000   Zero Coupon, 1/01/26       01/13 @ 46.781   1,475,350  

                        14,248,607  

            Texas—11.5%            
    BBB   3,700   Comal Cnty. Hlth. Facs., Hlth. Care Sys., McKenna Mem. Proj., Ser. A, 6.25%, 2/01/32       02/13 @ 100   3,805,117  
            Harris Cnty.,            
    AAA   7,485   GO, Zero Coupon, 8/15/25, MBIA       No Opt. Call   2,542,580  
    AAA   10,915   GO, Zero Coupon, 8/15/28, MBIA       No Opt. Call   3,142,319  
    AAA   5,510   Toll Road Rev., 5.00%, 8/15/30, FSA       08/12 @ 100   5,738,114  
            Harris Cnty. Sports Auth., Ser. H, MBIA,            
    AAA   5,785   Zero Coupon, 11/15/38       11/31 @ 64.91   825,924  
    AAA   6,160   Zero Coupon, 11/15/39       11/31 @ 60.976   825,748  
    AAA   25,000   Houston Wtr. & Swr. Sys., Ser. A, 5.00%, 12/01/30, FSA       12/12 @ 100   26,064,500  
    BBB+   3,000   Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31       07/12 @ 100   3,121,890  

                        46,066,192  

            Virginia—2.9%            
            Chesterfield Cnty. Indl. Dev. Auth., PCR, Elec. & Pwr. Co.,            
    A3   3,000   Ser. A, 5.875%, 6/01/17       11/10 @ 102   3,294,540  
    A3   4,000   Ser. B, 5.875%, 6/01/17       11/10 @ 102   4,392,720  
    AAA   3,640   Hampton Convention Center, 5.00%, 1/15/35, AMBAC       01/13 @ 100   3,818,724  

                        11,505,984  

            Washington—10.9%            
    AAA   3,655   Chelan Cnty. Pub. Util. Dist. 1, Chelan Hydro Sys., Ser. C, 5.125%, 7/01/33, AMBAC       07/12 @ 100   3,830,696  
    AAA   6,450   King Cnty. Swr., 5.00%, 1/01/31, FGIC       01/12 @ 100   6,695,487  
    AAA   9,500   Seattle, GO, Ser. F, 5.125%, 12/15/28, MBIA       12/08 @ 100   9,794,120  
    BBB   7,545   Tobacco Settlement Auth., 6.625%, 6/01/32       06/13 @ 100   7,259,950  
            Washington, GO, FSA,            
    AAA   6,380   Ser. A, 5.00%, 7/01/25       07/11 @ 100   6,641,644  
    AAA   9,000   Ser. B, 5.00%, 1/01/27       01/12 @ 100   9,348,570  

                        43,570,467  

            Wisconsin—2.8%            
    BBB   12,000   Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32       06/12 @ 100   11,275,440  

            Total Long-Term Investments (cost $576,955,964)           613,421,571  

See Notes to Financial Statements.

17



BlackRock Insured Municipal Income Trust (BYM) (continued)

        Shares                
        (000)      
Description
         
Value
 

            MONEY MARKET FUND—3.0%            
        11,900   AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $11,900,000)           $ 11,900,000  

            Total Investments—156.2% (cost $588,855,964)           $ 625,321,571  
            Other assets in excess of liabilities—1.0%           4,039,205  
            Preferred shares at redemption value, including dividends payable—(57.2)%           (229,006,446)  

            Net Assets Applicable to Common Shareholders—100%           $ 400,354,330  


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   This bond is prerefunded. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the maturity date indicated, typically at a premium to par.  
4   Entire or partial principal amount pledged as collateral for financial futures contracts.  
Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 81.4% of the Trust’s total investments.


KEY TO ABBREVIATIONS

 

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

See Notes to Financial Statements.

18


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock Municipal Bond Trust (BBK)

   
Principal
   
Amount
Option Call
   
Rating1
(000)
     
Description
Provisions2
Value

                  LONG-TERM INVESTMENTS—144.5%                          
                  Alabama—11.0%                          
    BBB   $ 9,250         Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.50%, 9/01/25                   09/05 @ 102       $ 9,616,485
    A2   7,500         Huntsville Hlth. Care Auth., Ser. A, 5.75%, 6/01/31                   06/11 @ 101       7,867,200

                                              17,483,685

                  California—13.9%                          
                  Golden St. Tobacco Sec. Corp., Ser. B,                          
    AAA   880         5.00%, 6/01/38, AMBAC                   06/13 @ 100       906,910
    BBB   7,300         5.50%, 6/01/43                   06/13 @ 100       7,369,277
    BBB   4,200         5.625%, 6/01/38                   06/13 @ 100       4,277,742
    B-   8,000         Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. B, 7.50%, 12/01/24                   12/12 @ 102       7,966,080
    NR3   1,585         Val Verde Unified School Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28                   10/13 @ 102       1,605,748

                                              22,125,757

                  Connecticut—3.1%                          
                  Connecticut Dev. Auth., Connecticut Lt. & Pwr.,                          
    A3   2,200         PCR, Ser. A, 5.85%, 9/01/28                   10/08 @ 102       2,327,468
    A3   1,750         PCR, Ser. B, 5.95%, 9/01/28                   10/08 @ 102       1,840,002
    BBB-   690         Mohegan Tribe Indians Gaming Auth., Pub. Impvt., 5.25%, 1/01/33                   01/14 @ 100       697,542

                                              4,865,012

                  Delaware—7.1%                          
    NR3   10,500 4         Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52                   10/14 @ 100       11,283,510

                  District of Columbia—10.7%                          
                  Dist. of Columbia,                          
    A   595         Friendship Pub. Charter Sch. Inc., 5.25%, 6/01/33, ACA                   06/14 @ 100       610,345
    AAA   33,450         Georgetown Univ., Ser. A, Zero Coupon, 4/01/38, MBIA                  
04/11 @ 20.243
     
4,535,151
    AAA   6,000         Tax Incr., Gallary Place Proj., 5.40%, 7/01/31, FSA                   07/12 @ 100       6,428,340
    BBB   5,580         Tobacco Settlement Fin. Corp., 6.75%, 5/15/40                   05/11 @ 101       5,389,499

                                              16,963,335

                  Florida—16.1%                          
    BBB-   6,200         Martin Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25                   12/04 @ 102       6,401,810
    A   10,000         Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32                   11/12 @ 101       10,577,600
    AAA   7,255         Palm Beach Cnty. Hsg. Fin. Auth., Mult. Fam. Rev., Indian Trace Apts., Ser. A, 5.625%, 1/01/44, FSA
                 
01/12 @ 100
     
7,549,988
    NR   1,000         Stevens Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35                   05/14 @ 100       1,022,810

                                              25,552,208

                  Georgia—0.8%                          
    AAA   1,265         Atlanta Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA                   05/12 @ 100       1,314,917

                  Illinois—18.3%                          
    AAA   23,065         Bolingbrook, GO, Ser. B, Zero Coupon, 1/01/36, FGIC                  
01/12 @ 23.018
     
3,481,662
    NR   1,150         Centerpoint Intermodal Center, Ser. A, 8.00%, 6/15/23                   No Opt. Call       1,157,061
    AAA   5,880         Chicago, GO, Ser. A, 5.50%, 1/01/38, MBIA                   01/11 @ 101       6,428,545
    BBB   6,000         Illinois Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/34
                 
05/07 @ 100
     
6,166,860
    A   6,000         Illinois Hlth. Facs. Auth., Lake Forest Hosp., Ser. A, 5.75%, 7/01/29                   07/12 @ 100       6,363,600
                  Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., Ser. A, MBIA,
                       
    AAA   10,000         Zero Coupon, 6/15/35                   No Opt. Call       1,976,200
    AAA   10,000         Zero Coupon, 12/15/36                   No Opt. Call       1,822,200
    AAA   10,000         Zero Coupon, 12/15/37                   No Opt. Call       1,723,900

                                              29,120,028

                  Indiana—1.3%                          
    NR3   2,020         Mult. Fam. Hsg., Canterbury House Apts., Ser. 1, 5.90%, 12/01/34                   12/11 @ 100       2,008,526

                  Kansas—3.4%                          
    A-   5,000         Wichita Arpt. Auth., Arpt. Facs. Rev., Cessna Citation Svc. Ctr., Ser. A, 6.25%, 6/15/32                   06/12 @ 101       5,335,550

                  Louisiana—0.7%                          
    Baa1   1,165         Louisiana Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38                   06/13 @ 102       1,184,490 

See Notes to Financial Statements.

19



BlackRock Municipal Bond Trust (BBK) (continued)

        Principal                                    
        Amount                             Option Call      
    Rating1   (000)            
Description
                  Provisions2      
Value

                  Maryland—1.5%                          
    NR   $ 1,250         Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31                   07/13 @ 101       $ 1,296,675
    BBB   1,040         Maryland St. Hlth. & Higher Edl. Facs. Auth., Medstar Hlth., 5.50%, 8/15/33                   08/14 @ 100       1,039,002

                                              2,335,677

                  Massachusetts—4.8%                          
    AAA   7,500 5         Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/37, MBIA                   01/07 @ 102       7,661,100

                  Nevada—0.9%                          
    NR   1,400         Las Vegas Spec. Impvt. Dist. No. 809, Summerlin Area, 5.65%, 6/01/23                   06/04 @ 103       1,388,380

                  New Jersey—14.5%                          
                  New Jersey Econ. Dev. Auth.,                          
    B   3,000         Continental Airlines Inc. Proj., 7.20%, 11/15/30                   11/10 @ 101       2,872,170
    Baa3   7,500         Kapkowski Road Landfill Proj., 6.50%, 4/01/28                   No Opt. Call       8,685,750
    BBB   11,330         Tobacco Settlement Fin. Corp., 7.00%, 6/01/41                   06/13 @ 100       11,429,137

                                              22,987,057

                  Ohio—0.9%                          
    NR   1,500         Port Greater Cincinnati Dev. Auth., Cooperative Pub. Parking Infrastructure Proj., 6.40%, 2/15/34
                 
02/14 @ 102
     
1,499,910

                  Oregon—0.6%                          
    NR3   1,000         Mult. Fam. Hsg., Pacific Tower Apts., Ser. 6, 6.05%, 11/01/34                   06/12 @ 100       988,900

                  Rhode Island—3.3%                          
    BBB   5,805         Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42                   06/12 @ 100       5,312,678

                  South Carolina—1.4%                          
                  So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev.,                          
    A-   1,000         Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%, 11/15/30                   11/12 @ 100       1,019,830
    BBB   1,000         Palmetto Hlth. Alliance, Ser. C, 7.00%, 8/01/30                   08/13 @ 100       1,119,770

                                              2,139,600

                  Texas—22.4%                          
    BBB   1,230         Brazos River Auth., PCR, TXU Elec Co. Proj., Ser. C, 6.75%, 10/01/38                   10/13 @ 101       1,339,777
    AAA   11,690         Harris Cnty. Houston Sports Auth., Ser. G, Zero Coupon, 11/15/41, MBIA                  
11/31 @ 53.779
     
1,380,238
    BBB   1,155         Matagorda Cnty. Navigation Dist. 1, Collateral Centerpoint Energy Proj., 5.60%, 3/01/27                   03/14 @ 101       1,179,729
    NR3   2,840         Mult. Fam. Hsg., Copperwood Ranch Apts., Ser. 9, 5.95%, 11/01/35                   06/12 @ 100       2,820,234
    BBB   10,000         Red River Auth., PCR, Celanese Proj., Ser. B, 6.70%, 11/01/30                   05/12 @ 101       10,805,100
    BBB   1,000         Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B, 6.15%, 8/01/22                   08/13 @ 101       1,058,210
    AAA   60,000         Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/35, AMBAC                  
08/12 @ 25.665
     
9,819,600
    BBB+   6,840         Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31                   07/12 @ 100       7,117,909

                                              35,520,797

                  West Virginia—2.2%                          
    AAA   20,255         West Virginia Hsg. Dev. Fund, Hsg. Fin. Rev., Zero Coupon, 11/01/37                   No Opt. Call       3,551,107

                  Wisconsin—5.6%                          
                  Wisconsin Hlth. & Edl. Facs. Auth.,                          
    A-   1,350         Aurora Hlth. Care, 6.40%, 4/15/33                   04/13 @ 100       1,445,729
    A   7,000         Wheaton Franciscan Svcs., 5.75%, 8/15/30                   02/12 @ 101       7,419,650

                                              8,865,379

                  Total Long-Term Investments (cost $216,065,896)                           229,487,603

                  SHORT-TERM INVESTMENTS—10.9%                          
                  Georgia—1.8%                          
    A1+   2,800         Mun. Elec. Auth., Proj. 1, Ser. C, 0.85%, 3/03/04, MBIA, FRWD6                   N/A       2,800,000

                  New York—1.7%                          
    A1+   1,500         New York City, Ser. H, 0.98%, 3/01/04, FSA, FRDD6                   N/A       1,500,000
    A1+   1,200         New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys., Ser. G, 0.98%, 3/01/04, FGIC, FRDD6
                 
N/A
     
1,200,000

                                             
2,700,000

See Notes to Financial Statements.

20



BlackRock Municipal Bond Trust (BBK) (continued)

                           
       
Shares
     
 
       
(000)
Description
Value
 

            MONEY MARKET FUNDS—7.4%        
        7,900   AIM Tax Free Investment Co. Cash Reserve Portfolio           $ 7,900,000  
        3,950   SSgA Tax Free Money Mkt. Fund           3,950,000  

                        11,850,000  

            Total Short-Term Investments (cost $17,350,000)           17,350,000  

            Total Investments—155.4% (cost $233,415,896)           $246,837,603  
            Other assets in excess of liabilities—1.6%           2,468,424  
            Preferred shares at redemption value, including dividends payable—(57.0)%           (90,509,006)  

            Net Assets Applicable to Common Shareholders—100%           $158,797,021  


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Security is deemed to be of investment grade quality by the investment advisor.  
4   Security is not registered under the Securities Act of 1933. This security may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of February 29, 2004, the Trust held 7.1% of its net assets, with a current market value of $11,283,510, in securities restricted as to resale.  
5   Entire or partial principal amount pledged as collateral for financial futures contracts.  
6   For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. 


KEY TO ABBREVIATIONS

 

ACA     — American Capital Access     FSA     — Financial Security Assurance
AMBAC     — American Municipal Bond Assurance Corporation   GO     — General Obligation
FGIC     — Financial Guaranty Insurance Company     PCR     — Pollution Control Revenue 
FRDD     — Floating Rate Daily Demand   MBIA     — Municipal Bond Insurance Association
FRWD     — Floating Rate Weekly Demand    

See Notes to Financial Statements.

21


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock Municipal Income Trust II (BLE)

        Principal                                    
        Amount                             Option Call      
    Rating1   (000)        
Description
                  Provisions2      
Value

                      LONG-TERM INVESTMENTS—150.8%                          
                  California—16.2%                          
    A   $ 2,250         Agua Caliente Band, Cahuilla Indians, 6.00%, 7/01/18                   07/13 @ 100       $ 2,244,825
    A   3,500         California Mobilehome Park Fin. Auth., Palomar Estates East & West, Ser. A, 5.25%, 3/15/34, ACA
                 
03/13 @ 102
   
3,560,165
    A   5,000         California Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33                   04/13 @ 100       5,205,000
                  Golden St. Tobacco Sec. Corp., Ser. B,                          
    AAA   1,880         5.00%, 6/01/38, AMBAC                   06/13 @ 100       1,937,490
    BBB   16,850         5.50%, 6/01/43                   06/13 @ 100       17,009,907
    BBB   8,800         5.625%, 6/01/38                   06/13 @ 100       8,962,888
    B-   11,410         Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24
                 
12/12 @ 102
   
11,361,622
    NR   4,620         San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.625%, 8/01/27
                 
08/11 @ 101
   
4,811,314

                                              55,093,211

                  Colorado—4.3%                          
    AA   10,000         Colorado Hlth. Facs. Auth., Catholic Hlth. Initiatives, Ser. A, 5.50%, 3/01/32                   03/12 @ 100       10,482,600
    AAA   4,000         Northwest Pkwy. Pub. Hwy. Auth., Ser. A, 5.25%, 6/15/41, FSA                   06/11 @ 102       4,257,840

                                              14,740,440

                  Connecticut—1.2%                          
    A3   2,500         Connecticut Dev. Auth., Connecticut Lt. & Pwr., PCR, Ser. B, 5.95%, 9/01/28                   10/08 @ 102       2,628,575
    BBB-   1,440         Mohegan Tribe Indians Gaming Auth., Pub. Impvt., 5.25%, 1/01/33                   01/14 @ 100       1,455,739

                                              4,084,314

                  District of Columbia—5.7%                          
                  Dist. of Columbia,                          
    A   1,265         Friendship Pub. Charter Sch. Inc., 5.25%, 6/01/33, ACA                   06/14 @ 100       1,297,624
    BBB   7,500         Tobacco Settlement Fin. Corp., 6.50%, 5/15/33                   No Opt. Call       7,070,100
    BBB   11,500         Tobacco Settlement Fin. Corp., 6.75%, 5/15/40                   05/11 @ 101       11,107,390

                                              19,475,114

                  Florida—15.5%                          
    Baa3   4,500         Capital Trust Agcy., Air Cargo Fort Lauderdale Proj., 5.75%, 1/01/32                   01/14 @ 101       4,366,665
                  Fishhawk Cmnty. Dev. Dist. II, Spec. Assmnt. Rev,                          
    NR   3,000         Ser. A, 6.25%, 5/01/34                   05/13 @ 101       3,095,730
    NR   6,830         Ser. B, 5.00%, 11/01/07                   No Opt. Call       6,943,446
    A   2,650         Leesburg Hosp., Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32                   07/12 @ 100       2,705,332
    NR   3,200         Live Oak Comm. Dev., Dist. No. 1 Spec. Assmnt. Rev., Ser. A, 6.30%, 5/01/34                   05/13 @ 101       3,323,200
    A   6,850         Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32                   11/12 @ 101       7,245,656
    AA-   14,000         Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33                   05/13 @ 100       14,454,160
    NR   2,085         Stevens Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35                   05/14 @ 100       2,132,559
    NR   4,625         Sumter Cnty. Ind. Dev. Auth., No. Sumter Util. Co. LLC, 6.90%, 10/01/34                   10/09 @ 100       4,707,140
    NR   3,715         Sumter Landing Cmnty. Dev., Spec. Assmnt. Rev, 6.875%, 5/01/23                   05/13 @ 101       3,900,862

                                              52,874,750

                  Georgia—1.6%                          
    AAA   5,175         Atlanta Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA                   05/12 @ 100       5,379,206

                  Illinois—16.5%                          
    AAA   4,000         Bolingbrook, GO, Ser. A, 5.375%, 1/01/38, FGIC                   01/12 @ 100       4,264,280
    NR   2,470         Centerpoint Intermodal Center, Ser. A, 8.00%, 6/15/23                   No Opt. Call       2,485,166
    A   7,500 3         Illinois Dev. Fin. Auth., Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig., 5.65%, 11/15/24                   11/09 @ 101       7,726,125
    A2   8,000         Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22                   01/13 @ 100       8,402,080
    AAA   15,000         Illinois Sports Facs. Auth., Dedicated St. Tax Supported Rev., Zero Coupon, 6/15/30, AMBAC                   06/15 @ 101       11,562,150
                  Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., Ser. A, MBIA,
                       
    AAA   25,000         Zero Coupon, 12/15/29                   No Opt. Call       6,690,250
    AAA   45,190         Zero Coupon, 6/15/33                   No Opt. Call       9,965,298
    AAA   5,000         Zero Coupon, 6/15/40                   No Opt. Call       751,100
    AAA   4,290         O’Hare Intl. Arpt., Refdg. Gen. Arpt. 3rd Lien, Ser. C-2, 5.25%, 1/01/30, FSA                   01/14 @ 100       4,502,827

                                              56,349,276

See Notes to Financial Statements.

22



BlackRock Municipal Income Trust II (BLE) (continued)

       
Principal
             
        Amount           Option Call  
    Rating1   (000)  
Description
      Provisions2  
Value

            Indiana—9.4%          
    Baa1   $ 5,500       Fort Wayne, PCR, Gen. Mtrs. Corp. Proj., 6.20%, 10/15/25       12/12 @ 101   $ 5,880,270
    AA   5,000   Indiana Hlth. Fac. Fin. Auth., Ascension Hlth., Ser. F, 5.375%, 11/15/25       11/12 @ 101   5,160,950
    AAA   19,735   Indianapolis Local Pub. Impvt. Bond Bank, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/33, MBIA       07/12 @ 100   20,967,253

                        32,008,473

            Louisiana—0.7%          
    Baa1   2,485   Louisiana Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38       06/13 @ 102   2,526,574

            Maryland—2.5%          
    Baa3   5,000   Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33       10/13 @ 100   5,058,450
            Maryland St. Hlth. & Higher Edl. Facs. Auth.,          
    BBB   2,240   Medstar Hlth., 5.50%, 8/15/33       08/14 @ 100   2,237,850
    A3   1,000   Union Hosp. of Cecil Cnty., 5.625%, 7/01/32       07/12 @ 100   1,040,950

                        8,337,250

            Massachusetts—3.9%          
    AAA   13,110   Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/39, AMBAC       01/09 @ 101   13,432,375

            Mississippi—1.7%          
    BBB   4,950   Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22       No Opt. Call   5,897,282

            Missouri—1.8%          
    NR   6,000   Dept. of Transp., Rt. 370/ Missouri Bottom Rd./Taussig Rd. Transp. Dev., 7.20%, 5/01/33       05/13 @ 100   6,249,720

            Nevada—2.6%          
    NR   3,000   Henderson Local Impvt. Dist. No. T-14, 5.80%, 3/01/23       03/04 @ 103   3,033,990
            No. Las Vegas Local Impvt., Spec. Impvt. Dist. 60 Aliante,          
    NR   2,500   6.125%, 12/01/17       12/03 @ 103   2,576,225
    NR   3,000   6.40%, 12/01/22       12/03 @ 103   3,091,320

                        8,701,535

            New Jersey—8.7%          
            New Jersey Econ. Dev. Auth.,          
    B   10,100   Continental Airlines Inc. Proj., 7.20%, 11/15/30       11/10 @ 101   9,669,639
    Baa3   7,475   Kapkowski Road Landfill Proj., 6.50%, 4/01/28       No Opt. Call   8,656,797
    Baa3   10,000   Kapkowski Road Landfill Proj., 6.50%, 4/01/31       No Opt. Call   11,461,200

                        29,787,636

            New Mexico—1.4%          
    Baa1   5,200   New Mexico Hsg. Auth., Region III, Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38       01/13 @ 102   4,845,412

            New York—2.6%          
    Caa2   8,800   Port Auth. of NY & NJ, Spec. Oblig. Rev., Cont’l/Eastern Proj. LaGuardia, 9.00%, 12/01/10       09/03 @ 100   8,847,520

            Pennsylvania—3.1%          
    BBB+   5,000   Monroe Cnty. Hosp. Auth., Hospital Pocono Med Center, 6.00%, 1/01/43       01/14 @ 100   5,221,300
    A3   5,175   Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Exempt Facs. Rev., Ser. A, 6.375%, 11/01/41       05/11 @ 101   5,325,696

                        10,546,996

            Rhode Island—3.8%          
    BBB   14,200   Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42       06/12 @ 100   12,995,698

            South Carolina—7.4%          
            Greenwood Cnty. Hosp., Self Mem. Hosp. Facs.,          
    A   3,280   5.50%, 10/01/26       10/11 @ 100   3,403,394
    A   3,250   5.50%, 10/01/31       10/11 @ 100   3,361,865
    NR   4,000   Lancaster Cnty. Assmnt., Edgewater Impvt. Dist. Ser. A, 6.875%, 11/01/35       11/13 @ 101   4,116,040
            So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev.,          
    A-   2,000   Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%, 11/15/30       11/12 @ 100   2,039,660
    AA   3,750   Georgetown Mem. Hosp., 5.375%, 2/01/30, RAA       08/11 @ 100   3,952,425
    BBB   2,640   Palmetto Hlth. Alliance, Ser. A, 6.25%, 8/01/31       08/13 @ 100   2,801,119
    BBB   5,000   Palmetto Hlth. Alliance, Ser. C, 6.875%, 8/01/27       08/13 @ 100   5,553,100

                        25,227,603

            South Dakota—2.8%          
    BBB   10,000   Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32       06/12 @ 101   9,551,400

            Tennessee—2.5%          
    AAA   20,405   Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/21, FSA       01/13 @ 63.44   8,359,724

See Notes to Financial Statements.

23



BlackRock Municipal Income Trust II (BLE) (continued)

        Principal                                    
        Amount                             Option Call      
    Rating1   (000)        
Description
                  Provisions2      
Value

                      Texas—17.8%                          
    BBB   $ 2,300         Brazos River Auth., PCR, TXU Elec Co. Proj., Ser. C, 6.75%, 10/01/38                   10/13 @ 101       $ 2,505,275
    A-   1,750         Crawford Ed. Facs. Corp., Higher Ed. Rev., Univ. of St. Thomas Proj., 5.375%, 10/01/27                   10/12 @ 100       1,771,123
    BBB   20,000         Gulf Coast Wst. Disp. Auth., Environ. Impvt. Rev., Ser. A, 6.10%, 8/01/24                   08/12 @ 100       21,176,600
    BBB   2,485         Matagorda Cnty. Navigation Dist. 1, Collateral Centerpoint Energy Proj., 5.60%, 3/01/27                   03/14 @ 101       2,538,204
                  Sabine River Auth., PCR, Ser. B,                          
    BBB   5,900         TXU Elec. Co. Proj., 5.75%, 11/01/11                   No Opt. Call       6,374,183
    BBB   2,000         TXU Elec. Co. Proj., 6.15%, 8/01/22                   08/13 @ 101       2,116,420
                  Texas Tpke. Auth., Central Sys. Rev., AMBAC,                          
    AAA   73,370         Zero Coupon, 8/15/36                   08/12 @ 24.171       11,303,382
    AAA   65,000         Zero Coupon, 8/15/37                   08/12 @ 22.708       9,308,650
    AAA   27,600         Zero Coupon, 8/15/38                   08/12 @ 21.384       3,719,928

                                              60,813,765

                  Utah—1.2%                          
    BBB   4,000         Tooele Cnty. Hazardous Wst. Treat., Union Pacific Proj., Ser. A, 5.70%, 11/01/26                   04/08 @ 102       4,094,480

                  Virginia—7.0%                          
    NR4   13,500         Alexandria Redev. & Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34                   04/08 @ 103       14,048,640
    AAA   9,000         Halifax Cnty. Indl. Dev. Auth., Exempt Fac. Rev., Old Dominion Elec. Coop. Proj., 5.625%, 6/01/28, AMBAC
                 
06/13 @ 101
     
9,792,270

                                              23,840,910

                  West Virginia—1.5%                          
    BBB+   5,000         Mason Cnty., PCR, Refunding Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22                   10/11 @ 100       5,114,850

                  Wisconsin—6.5%                          
    BBB   9,100         Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32                   06/12 @ 100       8,550,542
                  Wisconsin Hlth. & Edl. Facs. Auth.,                          
    A-   3,930         Aurora Hlth. Care, 6.40%, 4/15/33                   04/13 @ 100       4,208,676
    A-   4,000         Synergy Hlth. Inc., 6.00%, 11/15/32                   08/13 @ 100       4,175,160
    A   5,000         Wheaton Franciscan Svcs., 5.75%, 8/15/25                   02/12 @ 101       5,329,650

                                              22,264,028

                  U. S. Virgin Islands—0.9%                          
    A   2,920         Virgin Islands Pub. Fin. Auth., Gross Rcpts. Taxes Loan Note, 5.00%, 10/01/31, ACA                   10/14 @ 100       3,033,062

                  Total Long-Term Investments (cost $491,267,075)                           514,472,604

                  SHORT-TERM INVESTMENTS—7.9%                          
                  California—0.0%                          
    A1   75         California Hlth. Facs. Fin. Auth., Ins. Scripps Hlth., Ser. B, 0.92%, 3/03/04, MBIA, FRWD5                   N/A       75,000

                  Kansas—0.3%                          
    A1+   1,000         Kansas Dept. Transp. Hwy, Ser. B-1, 0.94%, 3/01/04, FRDD5                   N/A       1,000,000

                  Missouri—0.5%                          
    A1+   1,800         Missouri Hlth. & Edl. Facs. Auth., Edl. Facs. Rev., The Washington Univ., Ser. C, 0.98%, 3/01/04, FRDD5
                 
N/A
     
1,800,000

                  Texas—3.8%                          
    A1+   3,800         Brownsville Util. Sys., Ser. A, 0.90%, 3/03/04, MBIA, FRWD5                   N/A       3,800,000
    A1+   9,000         Lower Neches Valley Auth., Ind. Dev. Corp., Ser. A, 0.88%, 3/01/04, FRDD5                   N/A       9,000,000

                                              12,800,000

                  Puerto Rico—0.9%                          
    A1   3,000         Puerto Rico Comnwlth. Govt. Dev. Bank, 0.89%, 3/03/04, MBIA, FRWD5                   N/A       3,000,000

See Notes to Financial Statements.

24



BlackRock Municipal Income Trust II (BLE) (continued)

        Shares                    
        (000)  
Description
         
Value
 

            MONEY MARKET FUND—2.4%            
        8,200   AIM Tax Free Investment Co. Cash Reserve Portfolio           $ 8,200,000  

            Total Short-Term Investments (cost $26,875,000)           26,875,000  

            Total Investments—158.7% (cost $518,142,075)           $ 541,347,604  
            Other assets in excess of liabilities—1.6%           5,397,214  
            Preferred shares at redemption value, including dividends payable—(60.3)%           (205,571,978)  

            Net Assets Applicable to Common Shareholders—100%           $ 341,172,840  


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
4   Security is deemed to be of investment grade quality by the investment advisor.  
5   For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. 


KEY TO ABBREVIATIONS

 

ACA     — American Capital Access     FSA     — Financial Security Assurance
AMBAC     — American Municipal Bond Assurance Corporation   GO     — General Obligation
FGIC     — Financial Guaranty Insurance Company     MBIA     — Municipal Bond Insurance Association
FRDD     — Floating Rate Daily Demand   PCR     — Pollution Control Revenue 
FRWD     — Floating Rate Weekly Demand  

RAA     — Radian Asset Assurance


See Notes to Financial Statements.

25


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock California Insured Municipal Income Trust (BCK)

        Principal                
        Amount           Option Call    
    Rating1   (000)  
Description
      Provisions2  
Value

                   LONG-TERM INVESTMENTS—153.2%            
    AAA   $ 6,500   Benicia Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/23, MBIA       No Opt. Call   $ 2,501,720
            California Cnty., Tobacco Sec. Agcy. Rev.,            
    BBB   7,405   Sonoma Cnty., 5.875%, 6/01/43       06/12 @ 100   6,371,558
    BBB   7,650   Alameda Cnty., 6.00%, 6/01/42       06/12 @ 100   6,743,858
    A-   6,500   California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.25%, 5/01/20       05/12 @ 101   6,939,790
    AAA   2,385   California Edl. Facs. Auth., Scripps Coll., 5.00%, 8/01/31, MBIA       08/11 @ 100   2,483,858
    AAA   4,500 3   California Infrastructure & Econ. Dev., Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC       04/12 @ 100   4,773,870
    AAA   5,000   California Pub. Wks. Brd., Dept. of Gen. Svcs., Ser. A, 5.00%, 12/01/27, AMBAC       12/12 @ 100   5,209,250
            Ceres Unified Sch. Dist., Ser. B, FGIC,            
    AAA   3,055   Zero Coupon, 8/01/30       08/12 @ 34.887   710,837
    AAA   3,180   Zero Coupon, 8/01/31       08/12 @ 32.868   696,611
    AAA   3,300   Zero Coupon, 8/01/32       08/12 @ 30.966   679,008
    AAA   3,440   Zero Coupon, 8/01/33       08/12 @ 29.174   670,834
    AAA   3,575   Zero Coupon, 8/01/34       08/12 @ 27.782   658,015
    AAA   3,275   Zero Coupon, 8/01/35       08/12 @ 26.186   568,966
    AAA   2,000   Long Beach Unified Sch. Dist., Ser. D, 5.00%, 8/01/31, FSA       08/10 @ 101   2,082,900
            Los Angeles Dept. of Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, FGIC,            
    AAA   5,000   5.00%, 7/01/43       07/12 @ 100   5,187,300
    AAA   5,000   5.125%, 7/01/41       07/11 @ 100   5,256,800
    AAA   5,000   Los Angeles Unified Sch. Dist., Ser. E, 5.125%, 1/01/27, MBIA       07/12 @ 100   5,321,800
            Los Angeles Wstwtr. Sys., Ser. A,            
    AAA   5,000   5.00%, 6/01/27, MBIA       06/13 @ 100   5,246,400
    AAA   6,025   5.00%, 6/01/32, FGIC       06/12 @ 100   6,294,438
    AAA   5,000   No. California Pwr. Agcy., Pub. Pwr. Rev., Hydroelec. Proj. 1, Ser. A, 5.00%, 7/01/28, MBIA       07/08 @ 101   5,194,050
    AAA   2,500   No. Orange Cnty. Cmnty. Coll. Dist., Ser. A, 5.00%, 2/01/27, MBIA       08/12 @ 101   2,625,125
    AAA   5,000   Riverside Unified Sch. Dist., Ser. A, 5.00%, 2/01/27, FGIC       02/12 @ 101   5,257,950
    AAA   5,295   San Diego Cnty. Wtr. Auth., COP, Ser. A, 5.00%, 5/01/32, MBIA       05/12 @ 101   5,533,646
    AAA   4,805   San Diego Redev. Agcy., Centre City Proj., Ser. A, 5.00%, 9/01/28, MBIA       09/11 @ 101   5,034,871
    AAA   4,000   San Diego Univ. Fndtn Aux. Org., Ser. A, 5.00%, 3/01/37, MBIA       03/12 @ 100   4,174,480
    AAA   20,000   San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/31, MBIA       No Opt. Call   5,088,600
    AAA   6,000   San Jose Fin. Auth., Civic Ctr. Proj., Ser. B, 5.00%, 6/01/37, AMBAC       06/12 @ 100   6,268,320
    AAA   11,125   Santa Rosa Wstwtr., Ser. B, Zero Coupon, 9/01/27, AMBAC       No Opt. Call   3,392,012
    AAA   3,000   Tustin Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. A, 5.00%, 9/01/38, FSA       09/12 @ 100   3,116,190
    AAA   5,280   Westlands Wtr. Dist., COP, 5.00%, 9/01/34, MBIA       09/12 @ 101   5,525,467

            Total Long-Term Investments (cost $116,149,319)           119,608,524

        Shares      
        (000)      

            MONEY MARKET FUND—4.6%          
        3,600   AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $3,600,000)       N/A   3,600,000

            Total Investments—157.8% (cost $119,749,319)           $123,208,524
            Other assets in excess of liabilities—1.7%           1,352,782
            Preferred shares at redemption value, including dividends payable—(59.5)%           (46,508,035)

            Net Assets Applicable to Common Shareholders—100%           $ 78,053,271

 

1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
 
 Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 80.8% of the Trust’s total investments.  

 


KEY TO ABBREVIATIONS

 

AMBAC     — American Municipal Bond Assurance Corporation   FSA     — Financial Security Assurance
COP     — Certificate of Participation    MBIA     — Municipal Bond Insurance Association
FGIC     — Financial Guaranty Insurance Company      

See Notes to Financial Statements.

26


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock California Municipal Bond Trust (BZA)

        Principal              
        Amount           Option Call  
    Rating1   (000)  
Description
      Provisions2  
Value

                LONG-TERM INVESTMENTS—149.6%          
            California—142.2%          
    AAA   $ 5,000   Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, Zero Coupon, 9/01/32, FSA       No Opt. Call   $ 1,151,550
            California Cnty. Tobacco Sec. Agcy., Ser. A,          
    BBB   4,000   Kern Cnty. Fdg., 6.125%, 6/01/43       06/12 @ 100   3,576,560
    BBB   3,250   Stanislaus Fdg., 5.875%, 6/01/43       06/12 @ 100   2,796,430
    A2   4,000   California Edl. Facs. Auth., Univ. of San Diego, Ser. A, 5.25%, 10/01/30       10/12 @ 100   4,203,480
    BBB   3,270   California Hlth. Facs. Fin. Auth., Insured Hlth. Facs. Valleycare, Ser. A, 5.375%, 5/01/27       05/12 @ 100   3,369,146
    AAA   15,755   California Hsg. Fin. Agcy., Home Mtg., Ser. K, Zero Coupon, 2/01/33, MBIA       02/12 @ 27.46   2,826,289
            California Infrastructure & Econ. Dev.,          
    AAA   3,000   5.25%, 6/01/30, MBIA       06/07 @ 101   3,176,850
    A   3,750   J. David Gladstone Inst. Proj., 5.25%, 10/01/34       10/11 @ 101   3,894,750
    AAA   3,500 3   Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC       04/12 @ 100   3,713,010
            California Statewide Cmnty. Dev. Auth.,          
    A   5,000   Kaiser Permanente, Ser. A, 5.50%, 11/01/32       11/12 @ 100   5,221,950
    AA-   3,250   Sutter Hlth. Oblig. Grp., Ser. B, 5.625%, 8/15/42       08/12 @ 100   3,391,765
    BBB   3,750   Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., 5.75%, 1/15/40       01/10 @ 101   3,875,100
            Golden St. Tobacco Sec. Corp.,          
    BBB   3,000   Ser. A-1, 6.75%, 6/01/39       06/13 @ 100   2,924,970
    BBB   2,500   Ser. B, 5.50%, 6/01/43       06/13 @ 100   2,523,725
    BBB   1,300   Ser. B, 5.625%, 6/01/38       06/13 @ 100   1,324,063
            Lathrop Fin. Auth., Wtr. Suply. Proj.,          
    NR4   655   5.90%, 6/01/27       06/13 @ 100   654,928
    NR4   1,180   6.00%, 6/01/35       06/13 @ 100   1,187,918
            Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,          
    B-   1,000   Ser. B, 7.50%, 12/01/24       12/12 @ 102   995,760
    B-   680   Ser. C, 7.50%, 12/01/24       12/12 @ 102   677,117
            Mult. Fam. Hsg.,          
    NR4   2,240   San Lucas Apts., Ser. 5, 5.95%, 11/01/34       06/12 @ 100   2,218,765
    NR4   2,425   Westgate Courtyard Apts., Ser. 3, 5.80%, 11/01/34       12/11 @ 100   2,402,035
    NR   2,400   Orange Cnty. Cmnty. Facs. Dist., Spl. Tax Rev., Ladera Ranch, Ser. A, 6.00%, 8/15/32       08/10 @ 101   2,466,552
    BBB   3,000   Palm Springs Mobile Home Park, Sahara Mobile Home Park, 5.75%, 5/15/37       05/12 @ 102   3,082,230
    NR   2,500   San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.25%, 8/01/33      
08/11 @ 101
 
2,547,250
    AAA   15,000   Santa Ana Unified Sch. Dist., COP, Zero Coupon, 4/01/29, FSA       No Opt. Call   4,201,050
    AAA   2,500   Santa Clara Valley Wtr. Dist., Wtr. Util. Sys. Rev., Ser. A, 5.125%, 6/01/31, FGIC       06/10 @ 100   2,619,775
    A+   1,500   Torrance Hosp. Rev., Torrance Mem. Med Ctr., Ser. A, 5.50%, 6/01/31       06/11 @ 101   1,556,565

                        72,579,583

            Delaware—7.4%          
    NR4   3,500 5   Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52       10/14 @ 100   3,761,170

            Total Long-Term Investments (cost $73,257,824)           76,340,753


        Shares              
        (000)              

            MONEY MARKET FUNDS—7.0%          
        2,500   AIM Tax Free Investment Co. Cash Reserve Portfolio       N/A   2,500,000
        1,050   SSgA Tax Free Money Mkt. Fund       N/A   1,050,000

            Money Market Funds (cost $3,550,000)           3,550,000

            Total Investments—156.6% (cost $76,807,824)           $ 79,890,753
            Other assets in excess of liabilities—2.2%           1,105,938
            Preferred shares at redemption value, including dividends payable—(58.8)%           (29,980,179)

            Net Assets Applicable to Common Shareholders—100%           $   51,016,512


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
4   Security is deemed to be of investment grade quality by the investment advisor.  
5  Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of February 29, 2004, the Trust held 7.4% of its net assets, with a current market value of $3,761,170, in securities restricted as to resale.

 


KEY TO ABBREVIATIONS

 

AMBAC     — American Municipal Bond Assurance Corporation   FSA     — Financial Security Assurance
COP     — Certificate of Participation    MBIA     — Municipal Bond Insurance Association
FGIC     — Financial Guaranty Insurance Company      

See Notes to Financial Statements.

27


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock California Municipal Income Trust II (BCL)

        Principal                                    
        Amount                             Option Call      
    Rating1   (000)        
Description
                  Provisions2      
Value

                      LONG-TERM INVESTMENTS—157.7%                          
                  Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, FSA,                          
    AAA   $15,000         Zero Coupon, 9/01/34                   No Opt. Call       $ 3,116,400
    AAA   10,000         Zero Coupon, 9/01/36                   No Opt. Call       1,844,700
    Baa1   8,000         California, GO, 5.50%, 11/01/33                   11/13 @ 100       8,346,560
                  California Cnty. Tobacco Sec. Agcy.,                          
    Baa2   4,500         Gold Country Fdg. Corp., 6.00%, 6/01/38                   06/12 @ 100       3,991,050
    BBB   5,515         Ser. B, 6.00%, 6/01/29                   06/12 @ 100       5,135,347
    BBB   1,600         Stanislaus Fdg., Ser. A, 5.875%, 6/01/43                   06/12 @ 100       1,376,704
    A-   6,000 3         California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/21                   05/12 @ 101       6,424,620
                  California Infrastructure & Econ. Dev., Ser. A,                          
    AAA   5,000         Bay Area Toll Brdgs., 5.00%, 7/01/36, AMBAC                   07/13 @ 100       5,248,300
    A   1,735         Kaiser Hosp. Asst. LLC, 5.55%, 8/01/31                   08/11 @ 102       1,824,162
    AAA   2,500         Rand Corp., 5.25%, 4/01/42, AMBAC                   04/12 @ 100       2,652,150
    A   3,500         California Mobilehome Park Fin. Auth., Palomar Estates East & West, Ser. A, 5.25%, 3/15/34, ACA
                 
03/13 @ 102
     
3,560,165
                  California Statewide Cmnty. Dev. Auth.,                          
    A   5,000         Kaiser Permanente, Ser. A, 5.50%, 11/01/32                   11/12 @ 100       5,221,950
    A   7,000         Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33                   04/13 @ 100       7,287,000
    AA-   8,000         Sutter Hlth. Oblig Corp., Ser. B, 5.50%, 8/15/34                   08/12 @ 100       8,308,640
                  California Statewide Fin. Auth., Tobacco Settlement Rev.,                          
    BBB   5,000         Ser. A, 6.00%, 5/01/37                   05/12 @ 100       4,469,000
    BBB   1,750         Ser. B, 6.00%, 5/01/43                   05/12 @ 100       1,535,380
    AAA   6,000         Corona Norco Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. No. 98-1, 5.10%, 9/01/32, AMBAC
                 
09/12 @ 100
     
6,317,940
                  Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., Ser. A,                          
    AAA   15,470 4         Zero Coupon, 1/01/26                   ETM       5,367,471
    AAA   4,890 4         Zero Coupon, 1/01/30                   ETM       1,345,435
                  Golden St. Tobacco Sec. Corp.,                          
    BBB   4,000         Ser. A-1, 6.75%, 6/01/39                   06/13 @ 100       3,899,960
    BBB   5,650         Ser. B, 5.50%, 6/01/43                   06/13 @ 100       5,703,618
    BBB   3,000         Ser. B, 5.625%, 6/01/38                   06/13 @ 100       3,055,530
    AAA   5,000         La Quinta Redev. Agcy. Tax Allocation, Redev. Proj. Area No. 1, 5.125%, 9/01/32, AMBAC                   09/12 @ 102       5,326,150
                  Lathrop Fin. Auth., Wtr. Suply. Proj.,                          
    NR5   1,490         5.90%, 6/01/27                   06/13 @ 100       1,489,836
    NR5   2,680         6.00%, 6/01/35                   06/13 @ 100       2,697,983
    AAA   5,500         Los Angeles Dept. of Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, FGIC                   07/11 @ 100       5,782,480
    B-   1,785         Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24                   12/12 @ 102       1,777,432
                  Oxnard Impvt. Bond, Dist. No. 1 Spec. Assmt., 1 Rice Ave.,                          
    NR   1,920         5.625%, 9/02/27                   09/04 @ 103       1,904,659
    NR   1,915         5.70%, 9/02/32                   09/04 @ 103       1,896,348
    AAA   5,000         Poway Redev. Agcy. Tax Allocation, Paguay Redev. Proj., 5.125%, 6/15/33, AMBAC                   12/11 @ 101       5,300,050
                  Poway Unified Sch. Dist., Spl. Tax Rev., Cmnty. Facs. Dist. No. 6,                          
    NR   1,500         5.50%, 9/01/25                   09/10 @ 102       1,464,900
    NR   1,700         5.60%, 9/01/33                   09/10 @ 102       1,699,507
    BBB   2,470         Rohnert Park Fin. Auth., Rancho Feliz Mobile Home Park, Ser. A, 5.625%, 9/15/28                   09/13 @ 100       2,423,243
    AAA   5,000         Sacramento City Fin. Auth., Cap. Impvt., Ser. A, 5.00%, 12/01/32, AMBAC                   06/11 @ 100       5,199,850
    NR   6,000         San Bernardino Cnty., Spl. Tax Rev., Cmnty. Facs., 5.90%, 9/01/33                   09/12 @ 102       5,917,440
    AAA   8,665         San Diego Unified Sch. Dist., Ser. D, 5.25%, 7/01/23, FGIC                   07/12 @ 101       9,451,002
    NR   5,000         San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.25%, 8/01/33                  
08/11 @ 101
    
5,094,500
    AAA   30,000         San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/34, MBIA                   No Opt. Call       6,531,900
    NR   8,000         San Jose Mult. Fam. Hsg., Helzer Courts Apts. Proj., Ser. A, 6.40%, 12/01/41                   12/09 @ 102       7,734,400
                  Santa Clarita Facs. Dist., Valencia Town Ctr.,     
    NR5   1,640         5.80%, 11/15/25                   11/10 @ 102       1,646,511
    NR5   1,500         5.85%, 11/15/32                   11/10 @ 102       1,508,985

See Notes to Financial Statements.

28



BlackRock California Municipal Income Trust II (BCL) (continued)

        Principal                
        Amount           Option Call    
    Rating1   (000)      
Description
      Provisions2  
Value

    AAA   $ 2,685   Santa Rosa Wstwtr., Ser. B, Zero Coupon, 9/01/25, AMBAC       No Opt. Call   $ 911,477
    BBB-   2,200   So. Tahoe Joint Pwr. Fin. Auth., So. Tahoe Redev. Proj. 1-A, 5.45%, 10/01/33       10/13 @ 100   2,233,242
    NR   2,000   Tustin Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. B, 5.60%, 9/01/29       09/12 @ 101   2,009,500
    AAA   2,000   Univ. of California, Ser. A, 5.00%, 5/15/33, AMBAC       05/13 @ 100   2,090,440
    NR5   1,170   Val Verde Unified Sch. Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28       10/13 @ 102   1,185,315
    A2   2,000   Vernon Elec. Sys., Malburg Generating Station Proj., 5.50%, 4/01/33       04/08 @ 100   2,076,460

            Total Long-Term Investments (cost $175,789,249)           181,385,692


        Shares              
        (000)              

            Money Market Fund—2.8%     
        3,250   AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $3,250,000)       N/A   3,250,000

            Total Investments—160.5% (cost $179,039,249)           $184,635,692
            Other assets in excess of liabilities—2.0%           2,346,708
            Preferred shares at redemption value, including dividends payable—(62.5)%           (71,956,487)

            Net Assets Applicable to Common Shareholders—100%           $115,025,913


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
4   This security is collateralized by U.S. Treasury obligations.  
5   Security is deemed to be of investment grade quality by the investment advisor.  
  

 


KEY TO ABBREVIATIONS

 

ACA     — American Capital Access   FSA     — Financial Security Assurance
AMBAC     — American Municipal Bond Assurance Corporation    GO     — General Obligation
ETM     — Escrowed to Maturity   MBIA     — Municipal Bond Insurance Association
FGIC     — Financial Guaranty Insurance Company      

 

See Notes to Financial Statements.

29


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock Florida Insured Municipal Income Trust (BAF)

        Principal              
        Amount           Option Call  
    Rating1   (000)      
Description
      Provisions2  
Value

            LONG-TERM INVESTMENTS—155.9%          
            Florida—149.2%          
            Capital Trust Agcy. Multi-Fam., American Opp.,          
    Baa3   $ 1,000   Ser. C, 7.25%, 6/01/38       06/13 @ 102   $ 993,580
    Baa1   1,000   Ser. A, 5.875%, 6/01/38       06/13 @ 102   974,720
    NR3   4,000   Colonial Cntry. Club Cmnty. Dev. Dist., 6.40%, 5/01/33       05/13 @ 101   4,175,080
            Florida Brd. of Ed.,          
    AAA   9,000   GO, Ser. A, 5.00%, 6/01/27, FSA       06/12 @ 101   9,506,790
    AAA   8,640 4   Lottery Rev., Ser. C, 5.00%, 1/01/22, MBIA       01/13 @ 101   9,187,776
    AAA   7,000   Florida Dept. of Transp., 5.00%, 7/01/27, FSA       07/12 @ 101   7,353,080
    AAA   8,695   Gainesville Util. Sys., Ser. A, 5.00%, 10/01/33, FSA       10/13 @ 100   9,122,707
    A   8,500   Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31       11/11 @ 101   9,096,360
    AAA   7,580   Hillsborough Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/25, MBIA       07/10 @ 100   7,869,783
            Jacksonville,          
    AAA   8,000   Excise Tax, Ser. B, 5.00%, 10/01/26, AMBAC       10/12 @ 100   8,387,920
    AAA   9,500   Sales Tax, 5.00%, 10/01/27, MBIA       10/13 @ 100   10,005,400
    AAA   9,500   Transp., 5.00%, 10/01/31, MBIA       10/11 @ 100   9,889,025
    AAA   2,865   Jacksonville Cap. Impvt., Ser. A, 5.00%, 10/01/30, AMBAC       10/12 @ 100   2,997,650
    AAA   1,480   Julington Creek Plantation Cmnty. Dev., Assmt. Rev., 5.00%, 5/01/29, MBIA       05/12 @ 101   1,553,541
    AAA   9,000   Lake Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/28, AMBAC       07/13 @ 100   9,461,070
    AAA   26,935   Miami Dade Cnty., Spec. Oblig. Rev., Ser. B, Zero Coupon, 10/01/31, MBIA       04/08 @ 28.079   5,905,229
    AAA   7,975   Orange Cnty., Sales Tax, Ser. B, 5.125%, 1/01/32, FGIC       01/13 @ 100   8,401,662
    AAA   2,000   Orange Cnty. Sch. Brd., COP, Ser. A, 5.00%, 8/01/27, MBIA       08/12 @ 100   2,088,180
    AAA   9,250   Orange Cnty. Tourist Dev., Tax Rev., 5.125%, 10/01/30, AMBAC       04/12 @ 100   9,722,027
    AAA   4,000   Osceola Cnty. Sch. Brd., COP, Ser. A, 5.25%, 6/01/27, AMBAC       06/12 @ 101   4,285,240
            Palm Bay Util., FGIC,          
    AAA   4,015   Zero Coupon, 10/01/28       No Opt. Call   1,196,350
    AAA   5,570   Zero Coupon, 10/01/31       No Opt. Call   1,427,591
    AAA   9,200   Palm Beach Cnty. Sch. Brd., COP, Ser. D, 5.00%, 8/01/28, FSA       08/12 @ 100   9,612,252
    AA-   5,000   Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33       05/13 @ 100   5,162,200
    AAA   9,500   Pinellas Cnty. Swr., 5.00%, 10/01/32, FSA       10/13 @ 100   9,967,305
    AAA   5,000   Polk Cnty. Util. Sys., 5.00%, 10/01/29, FGIC       10/13 @ 100   5,257,950
    AAA   825   Port St. Lucie Util., 5.125%, 9/01/31, MBIA       09/11 @ 100   865,565
    AAA   2,945   Sarasota Cnty. Util. Sys., Ser. C, 5.25%, 10/01/22, FGIC       10/12 @ 100   3,186,284
    AAA   3,500   St. Petersburg Pub. Util., Ser. A, 5.00%, 10/01/28, FSA       10/09 @ 101   3,632,545
    AAA   2,000   Tampa Bay Wtr. Util. Sys., Ser. A, 5.00%, 10/01/28, FGIC       10/11 @ 100   2,085,840
            Tohopekaliga Wtr. Auth., Ser. B, FSA,          
    AAA   1,980   5.00%, 10/01/21       10/13 @ 100   2,125,570
    AAA   1,000   5.00%, 10/01/23       10/13 @ 100   1,063,710
            Village Cmnty. Dev., Assmt. Rev.,          
    NR3   5,000   Ser. A, 6.50%, 5/01/33       05/13 @ 101   5,284,400
    NR3   975   Ser. B, 5.40%, 5/01/07       No Opt. Call   994,481
    AAA   12,000   Village Cntr. Cmnty. Dev. Dist., Ser. A, 5.00%, 11/01/32, MBIA       11/13 @ 101   12,644,040

                        195,482,903

            Puerto Rico—6.7%          
    BBB   9,405   Children’s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43       05/12 @ 100   8,768,940

            Total Long-Term Investments (cost $196,677,572)           204,251,843

See Notes to Financial Statements.

30



BlackRock Florida Insured Municipal Income Trust (BAF) (continued)

        Shares                      
        (000)  
Description
         
Value
 

            MONEY MARKET FUND—0.2%        
        300   AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $300,000)           $ 300,000  

            Total Investments—156.1% (cost $196,977,572)           $204,551,843  
            Other assets in excess of liabilities—1.9%           2,533,079  
            Preferred shares at redemption value, including dividends payable—(58.0)%           (76,011,621)  

            Net Assets Applicable to Common Shareholders—100%           $131,073,301  


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Security was deemed to be of investment grade quality by the investment advisor at the time of purchase.  
4   Entire or partial principal amount pledged as collateral for financial futures contracts.  
 
  Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 82.5% of the Trust’s total investments.      


KEY TO ABBREVIATIONS

 

AMBAC     — American Municipal Bond Assurance Corporation    FSA     — Financial Security Assurance
COP     — Certificate of Participation   GO     — General Obligation
FGIC     — Financial Guaranty Insurance Company     MBIA     — Municipal Bond Insurance Association


See Notes to Financial Statements.

31


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock Florida Municipal Bond Trust (BIE)

        Principal              
        Amount               Option Call  
    Rating1   (000)  
Description
      Provisions2  
Value

            LONG-TERM INVESTMENTS—154.7%          
            Florida—141.4%          
    AAA   $ 1,250   Bay Cnty., Sales Tax Rev., 5.125%, 9/01/32, AMBAC       09/12 @ 100   $ 1,319,350
    A   1,000   Boynton Beach Multi. Fam., Clipper Cove Apts., 5.30%, 1/01/23, ACA       01/13 @ 100   1,028,750
    Baa1   1,000   Capital Trust Agcy. Multi-Fam., American Opp., Ser. A, 5.875%, 6/01/38       06/13 @ 102   974,720
    NR   1,690   Colonial Cntry. Club Cmnty. Dev. Dist., 6.40%, 5/01/33       05/13 @ 101   1,763,971
    AAA   750   Florida Brd. Educ., GO, Ser. J, 5.00%, 6/01/24, AMBAC       06/13 @ 101   797,910
    AAA   3,150   Florida Mun. Loan Council, Ser. A, 5.125%, 5/01/32, MBIA       05/12 @ 101   3,336,039
    NR   1,460   Gateway Svcs. Cmnty. Dev. Dist., Spec. Assmt., Stoneybrook Proj., 5.50%, 7/01/08       No Opt. Call   1,482,907
    AAA   3,100   Greater Orlando Aviation Auth., Orlando Arpt. Facs., Ser. A, 5.125%, 10/01/32, FSA       10/12 @ 100   3,259,681
    A   4,900   Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31       11/11 @ 101   5,243,784
    BBB+   1,810   Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23       10/12 @ 100   1,831,322
    AA   3,500   Jacksonville Econ. Dev. Comm. Hlth. Facs., Mayo Clinic, Ser. B, 5.50%, 11/15/36       11/11 @ 101   3,704,435
    AA+   5,000   JEA Elec. Sys., Ser. A, 5.50%, 10/01/41       10/07 @ 100   5,380,450
    AAA   5,425 3   JEA Wtr. & Swr. Sys., Ser. A, 5.375%, 10/01/30, MBIA       04/07 @ 100   5,678,836
    A1   3,000   Lakeland Hosp. Sys., Lakeland Regl. Hlth. Sys., 5.50%, 11/15/32       11/12 @ 101   3,080,880
            Miami Dade Cnty., Spec. Oblig. Rev., MBIA,          
    AAA   5,500   Ser. A, Zero Coupon, 10/01/26       04/08 @ 37.301   1,611,775
    AAA   10,000   Ser. B, Zero Coupon, 10/01/30       04/08 @ 29.688   2,321,500
    AAA   5,410   Ser. B, Zero Coupon, 10/01/32       04/08 @ 26.494   1,118,355
    A2   5,000   Orange Cnty. Hlth. Facs. Auth., Orlando Regl. Hlth. Care, 5.75%, 12/01/32       12/12 @ 100   5,246,450
    AAA   3,350   Orange Cnty. Tourist Dev., Tax Rev., 5.125%, 10/01/30, AMBAC       04/12 @ 100   3,520,951
    AAA   3,105   Osceola Cnty. Tourist Dev., Tax Rev., Ser. A, 5.00%, 10/01/32, FGIC       10/12 @ 100   3,244,228
    AAA   3,630   Palm Bay Util., Zero Coupon, 10/01/28, FGIC       No Opt. Call   1,081,631
    AAA   3,000   Palm Beach Cnty. Sch. Brd., COP, Ser. C, 5.00%, 8/01/27, FSA       08/12 @ 100   3,132,270
    AAA   1,500   Port St. Lucie Util., 5.125%, 9/01/31, MBIA       09/11 @ 100   1,573,755
    Aa3   2,000   So. Broward Hosp. Dist., 5.60%, 5/01/27       05/12 @ 101   2,118,420
    NR   2,000   Stevens Plantation Impvt. Proj., 6.375%, 5/01/13       No Opt. Call   2,050,620
    NR   2,850   Sumter Cnty. Indl. Dev. Auth., No. Sumter Util. Co. LLC, 6.80%, 10/01/32       10/09 @ 100   2,907,485
    NR   1,900   Village Cmnty. Dev., Assmt. Rev., Ser. A, 6.50%, 5/01/33       05/13 @ 101   2,008,072
            Volusia Cnty Edl. Fac. Auth., Embry Riddle Aeronautical, RAA,          
    AA   1,250   5.20%, 10/15/26       10/13 @ 100   1,299,225
    AA   1,610   5.20%, 10/15/33       10/13 @ 100   1,684,849

                        73,802,621

            Delaware—6.2%          
    NR4   3,000 5   Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52       10/14 @ 100   3,223,860

            Puerto Rico—7.1%          
    A-   3,500   Puerto Rico Pub. Bldgs. Auth., Gov’t. Facs., Ser. D, 5.25%, 7/01/36       07/12 @ 100   3,693,480

            Total Investments—154.7% (cost $75,832,770)           $ 80,719,961
            Other assets in excess of liabilities—2.4%           1,250,887
            Preferred shares at redemption value, including dividends payable—(57.1)%           (29,778,001)

            Net Assets Applicable to Common Shareholders—100%           $ 52,192,847

 

1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
4   Security is deemed to be of investment grade quality by the investment advisor.  
5   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of February 29, 2004, the Trust held 6.2% of its net assets, with a current market value of $3,223,860, in securities restricted as to resale.  


KEY TO ABBREVIATIONS

 

ACA     — American Capital Access   FSA     — Financial Security Assurance
AMBAC     — American Municipal Bond Assurance Corporation    MBIA     — Municipal Bond Insurance Association
 COP     — Certificate of Participation   PCR     — Pollution Control Revenue 
FGIC     — Financial Guaranty Insurance Company    RAA     — Radian Asset Assurance


See Notes to Financial Statements.

32


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock Maryland Municipal Bond Trust (BZM)

        Principal                                    
        Amount                             Option Call      
    Rating1   (000)            
Description
                  Provisions2      
Value

                  LONG-TERM INVESTMENTS—151.8%                          
                  Maryland—120.2%                          
    A3   $2,870         Anne Arundel Cnty. Econ. Dev., Cmnty. Coll. Proj., 5.25%, 9/01/28                   09/12 @ 102       $ 3,020,331
    NR   1,000         Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31                   07/13 @ 101       1,037,340
                  Baltimore Cnty., GO,                          
    AAA   2,000 3         Met. 67th Dist., 5.00%, 6/01/22                   06/11 @ 101       2,139,700
    AAA   2,000         Met. 68th Dist., 5.00%, 8/01/28                   08/12 @ 100       2,099,680
                  Baltimore Wstwtr. Proj., Ser. A, FGIC,                          
    AAA   2,000         5.125%, 7/01/42                   07/12 @ 100       2,103,260
    AAA   3,500         5.20%, 7/01/32                   07/12 @ 100       3,729,110
    NR   1,000         Frederick Cnty. Spec. Oblig., Urbana Cmnty. Dev. Auth., 6.625%, 7/01/25                   07/07 @ 102       1,050,730
    Aa2   390         Maryland Cmnty Dev. Admin., Dept. Hsg. & Cmnty. Dev., Ser. B, 4.95%, 7/01/32                   07/12 @ 100       391,240
    Baa3   1,500         Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33                   10/13 @ 100       1,517,535
                  Maryland Hlth. & Higher Edl. Facs. Auth.,                          
    A   2,000         Brd. of Child Care, 5.375%, 7/01/32                   07/12 @ 100       2,105,020
    BBB+   1,990         Carroll Cnty. Gen. Hosp., 6.00%, 7/01/37                   07/12 @ 100       2,110,694
    AA   2,000         Johns Hopkins Univ., Ser. B, 5.00%, 7/01/41                   07/11 @ 100       2,070,580
    A   2,000         Loyola Coll. Issue, 5.00%, 10/01/39                   10/09 @ 101       2,060,720
    A3   2,000         Union Hosp. of Cecil Cnty., 5.625%, 7/01/32                   07/12 @ 100       2,081,900
    A   2,000         Univ. of Maryland Med. Sys., 5.25%, 7/01/34                   07/11 @ 100       2,053,640
    A2   1,905         Maryland Ind. Dev. Fin. Auth., Econ. Dev. Rev., Nat’l. Aquarium Baltimore Fac., Ser. B, 5.20%, 11/01/26
                 
11/12 @ 100
    
1,988,934
    AAA   2,000         Maryland Transp. Auth., Arpt. Pkg. Rev., Baltimore/Wash Intl. Arpt., Ser. B, 5.125%, 3/01/24, AMBAC
                 
03/12 @ 101
     
2,100,160
                  Montgomery Cnty. Lease, Metrorail Garage Proj.,                          
    AA   500         5.00%, 6/01/23                   06/12 @ 100       529,480
    AA   1,435         5.00%, 6/01/24                   06/12 @ 100       1,514,470
                  St. Mary’s Coll., Academic & Auxil. Fees, Ser. A, AMBAC,                          
    AAA   1,000         5.00%, 9/01/27                   09/12 @ 101       1,055,240
    AAA   1,000         5.00%, 9/01/32                   09/12 @ 101       1,051,250

                                              37,811,014

                  Delaware—6.9%                          
    NR4   2,000 5         Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52                   10/14 @ 100       2,149,240

                  Puerto Rico—24.7%                          
    BBB   2,000         Children’s Trust Fund, Tobacco Settlement Rev., 5.50%, 5/15/39                   05/12 @ 100       1,845,960
    AAA   2,060         Puerto Rico Elec. Pwr. Auth., Ser. HH, 5.25%, 7/01/29, FSA                   07/10 @ 101       2,205,292
    A   2,000         Puerto Rico Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38                   07/12 @ 100       2,103,440
    A-   1,500         Puerto Rico Pub. Bldgs. Auth., Gov’t. Facs., Ser. D, 5.375%, 7/01/33                   07/12 @ 100       1,606,650

                                              7,761,342

                  Total Long-Term Investments (cost $44,966,131)                           47,721,596

        Shares                                
        (000)                                

                  MONEY MARKET FUND—2.5%                          
        800         AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $800,000)                   N/A       800,000

                  Total Investments—154.3% (cost $45,766,131)                           $ 48,521,596
                  Other assets in excess of liabilities—2.9%                           927,691
                  Preferred shares at redemption value, including dividends payable—(57.2)%                           (18,000,963)

                  Net Assets Applicable to Common Shareholders—100%                           $ 31,448,324

 

1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
4   Security is deemed to be of investment grade quality by the investment advisor.  
5   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of February 29, 2004, the Trust held 6.9% of its net assets, with a current market value of $2,149,240, in securities restricted as to resale.  


KEY TO ABBREVIATIONS

 

AMBAC     — American Municipal Bond Assurance Corporation    FSA     — Financial Security Assurance
FGIC     — Financial Guaranty Insurance Company    GO     — General Obligation


See Notes to Financial Statements.

33


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock New Jersey Municipal Bond Trust (BLJ)

        Principal              
        Amount           Option Call  
    Rating1   (000)      
Description
      Provisions2  
Value

            LONG-TERM INVESTMENTS—158.0%          
            New Jersey—123.1%          
    AAA   $10,000   Garden St. Pres. Trust, Open Space & Farmland Pres., Ser. B, Zero Coupon, 11/01/27, FSA       No Opt. Call   $ 3,153,700
    Baa1   2,500   Middlesex Cnty. Impvt. Auth., Str. Student Hsg. Proj., Ser. A, 5.00%, 8/15/35       08/14 @ 100   2,453,275
            New Jersey Econ. Dev. Auth.,          
    B   2,335   Continental Airlines Inc. Proj., 7.00%, 11/15/30       11/10 @ 101   2,182,221
    BBB-   2,000   Fellowship Village, Ser. A, 5.50%, 1/01/25       01/08 @ 102   1,994,840
    Baa3   2,250   Kapkowski Road Landfill Proj., 6.50%, 4/01/28       No Opt. Call   2,605,725
    Aaa   1,770   Victoria Hlth., Ser. A, 5.20%, 12/20/36,       12/11 @ 103   1,867,385
    BBB-   1,500   Winchester, Ser. A, 5.80%, 11/01/31       11/14 @ 100   1,499,655
            New Jersey Edl. Facs. Auth.,          
    BBB-   1,000   Fairleigh Dickinson Univ., Ser. D, 6.00%, 7/01/25       07/13 @ 100   1,048,910
    BBB+   630   Georgian Court Coll. Proj., Ser. C, 6.50%, 7/01/33       07/13 @ 100   702,904
            New Jersey Hlth. Care Fac. Fin. Auth.,          
    A-   2,000   Atlantic City Med. Ctr., 5.75%, 7/01/25       07/12 @ 100   2,122,600
    A+   2,000   Catholic Hlth. East, Ser. A, 5.375%, 11/15/33       11/12 @ 100   2,061,480
    A3   2,000 3   Kennedy Hlth. Sys., 5.625%, 7/01/31       07/11 @ 100   2,079,460
    Baa1   2,500   So. Jersey Hosp., 6.00%, 7/01/32       07/12 @ 100   2,584,600
    AAA   2,250   New Jersey Hsg. & Mtg. Fin. Agcy., Mult. Fam. Hsg. Rev., Ser. A, 5.65%, 5/01/40, AMBAC       11/07 @ 101.5   2,351,385
            Port Auth. of NY & NJ,          
    AAA   1,500   Ser. 125, 5.00%, 4/15/32, FSA       04/12 @ 101   1,582,095
    AAA   2,250   Ser. 126, 5.25%, 5/15/37, FGIC       05/12 @ 101   2,372,558
    Caa2   130   Spec. Oblig., Cont’l/Eastern Proj. LaGuardia, 9.125%, 12/01/15       03/04 @ 100   130,183
    BBB   7,000   Tobacco Settlement Fin. Corp., 6.125%, 6/01/42       06/12 @ 100   6,331,920
    AAA   1,000   Univ. of Med. & Dentistry, Ser. A, 5.00%, 12/01/31, AMBAC       12/12 @ 100   1,050,750
            Vineland, GO, MBIA,          
    AAA   1,000   5.30%, 5/15/29       05/10 @ 101   1,058,140
    AAA   1,500   5.375%, 5/15/32       05/10 @ 101   1,590,285

                        42,824,071

            Delaware—6.2%          
    NR4   2,000 5   Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52       10/14 @ 100   2,149,240

            Puerto Rico—28.7%          
    A-   2,250   Puerto Rico Elec. Pwr. Auth., Ser. 2, 5.25%, 7/01/31       07/12 @ 101   2,388,532
    A   4,900   Puerto Rico Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38       07/12 @ 100   5,153,428
    A-   2,300   Puerto Rico Pub. Bldgs. Auth., Gov’t. Facs., Ser. D, 5.25%, 7/01/27       07/12 @ 100   2,435,355

                        9,977,315

            Total Investments—158.0% (cost $52,721,818)           $ 54,950,626
            Other assets in excess of liabilities—0.2%           57,080
            Preferred shares at redemption value, including dividends payable—(58.2)%           (20,228,093)

            Net Assets Applicable to Common Shareholders—100%           $ 34,779,613


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
4   Security is deemed to be of investment grade quality by the investment advisor.  
5   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of February 29, 2004, the Trust held 6.2% of its net assets, with a current market value of $2,149,240, in securities restricted as to resale.  


KEY TO ABBREVIATIONS

 

AMBAC     — American Municipal Bond Assurance Corporation    GO     — General Obligation
FGIC     — Financial Guaranty Insurance Company    MBIA     — Municipal Bond Insurance Association
FSA     — Financial Security Assurance    


See Notes to Financial Statements.

34


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock New York Insured Municipal Income Trust (BSE)

        Principal                                    
        Amount                             Option Call      
    Rating1   (000)            
Description
                  Provisions2      
Value

                  LONG-TERM INVESTMENTS—155.5%                          
                  New York—141.8%                          
    BBB-   $ 1,000         Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg., 6.25%, 8/01/34
                 
08/13 @ 100
    $ 1,031,420
                  Met. Transp. Auth.,                          
    AAA   1,085         Ser. A, 5.00%, 11/15/25, FGIC                   11/12 @ 100       1,142,245
    AAA   8,470         Ser. A, 5.00%, 11/15/30, FSA                   11/12 @ 100       8,879,186
    AAA   5,000         Ser. A, 5.25%, 11/15/31, FGIC                   11/12 @ 100       5,365,200
    AAA   5,000         Dedicated Tax Fund, Ser. A, 5.00%, 11/15/28, FSA                   11/12 @ 100       5,248,950
    AAA   5,000         Dedicated Tax Fund, Ser. A, 5.00%, 11/15/31, FGIC                   11/11 @ 100       5,214,150
    AAA   2,660         Refdg. Transp., Ser. E, 5.25%, 11/15/31, FGIC                   11/12 @ 100       2,854,286
    AAA   10,000         Svc. Contract Rev., Ser. A, 5.00%, 7/01/30, AMBAC                   07/12 @ 100       10,465,400
    A   2,500         New York City Indl. Dev. Agcy., Lycee Francais de Proj., Ser. A, 5.375%, 6/01/23, ACA                   12/12 @ 100       2,633,050
    AAA   4,500         New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Syst, Ser. A, 5.125%, 6/15/34, FSA                   06/12 @ 100       4,740,885
    AAA   7,000         New York City Transl. Fin. Auth., Ser. B, 5.00%, 5/01/30, AMBAC                   11/11 @ 101       7,336,910
    BBB   3,320         New York Cntys. Tobacco Trust III, 6.00%, 6/01/43                   06/13 @ 100       3,222,890
                  New York Dorm. Auth.,                          
    AAA   5,000         Brooklyn Law School, Ser. B, 5.125%, 7/01/30, XLCA                   07/13 @ 100       5,284,050
    AAA   7,000         Hosp. Lutheran Med., 5.00%, 8/01/31, MBIA                   02/13 @ 100       7,339,990
    AAA   3,160         Iona Coll., 5.00%, 7/01/27, XLCA                   07/12 @ 100       3,313,829
    Aa3   3,000         Joachim & Ann Residence, 5.25%, 7/01/27                   07/12 @ 100       3,067,500
    AAA   10,000         Memorial Sloan Kettering Ctr., Ser. 1, Zero Coupon, 7/01/30, MBIA                   No Opt. Call       2,776,000
    AAA   5,000         New York & Presbyterian Hosp., 5.00%, 8/01/32, AMBAC                   02/08 @ 101       5,159,600
    AAA   7,000         New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC                   07/11 @ 100       7,264,810
    AAA   2,000         Sch. Dist. Fin., Ser. A, 5.00%, 4/01/31, MBIA                   10/12 @ 100       2,094,060
    AAA   3,500         Sch. Dist. Fin., Ser. D, 5.00%, 10/01/30, MBIA                   10/12 @ 100       3,667,160
    AAA   7,000 3         St. Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC                   08/12 @ 100       7,323,680
    AAA   5,000 4         Univ. Dorm. Facs., 5.00%, 7/01/12, MBIA                   N/A       5,775,700
    AAA   2,000         Winthrop Univ. Hosp. Assoc., Ser. A, 5.25%, 7/01/31, AMBAC                   07/11 @ 101       2,133,520
                  New York Urban Dev. Corp.,                          
    AAA   5,000         Ser. B, 5.00%, 3/15/33, MBIA                   03/13 @ 100       5,241,950
    AAA   2,500         Ser. C-1, 5.00%, 3/15/33, FGIC                   03/13 @ 100       2,620,975
    AAA   10,000         Triborough Brdg. & Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA                   11/12 @ 100       10,505,300
    A3   6,000         TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32                   07/12 @ 100       5,925,840

                                              137,628,536

                  Puerto Rico—13.7%                          
    BBB   7,600         Children’s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43                   05/12 @ 100       7,086,012
    A   5,000         Puerto Rico Indl. Fin. Auth., Med. & Env. Ctrl. Facs., Polytecnic Univ., Ser. A, 5.00%, 8/01/32, ACA
                 
08/12 @ 100
    
5,145,800
    AAA   1,000         Puerto Rico Mun. Fin. Agcy., Ser. A, 5.00%, 8/01/27, FSA                   08/12 @ 100       1,057,090

                                              13,288,902

                  Total Long-Term Investments (cost $144,725,754)                           150,917,438

        Shares                                
        (000)                                

                  MONEY MARKET FUND—0.7%                          
        650         AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $650,000)                   N/A       650,000

                  Total Investments—156.2% (cost $145,375,754)                           $151,567,438
                  Other assets in excess of liabilities—1.5%                           1,476,987
                  Preferred shares at redemption value, including dividends payable—(57.7)%                           (56,002,765)

                  Net Assets Applicable to Common Shareholders—100%                           $ 97,041,660


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
4   This bond is prerefunded. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the maturity date indicated, typically at a premium to par.  
 
  Securities that are covered by insurance, which ensures the timely payment of principal and interest, represent approximately 86.2% of the Trust’s total investments.      


KEY TO ABBREVIATIONS

 

ACA     — American Capital Access   FSA     — Financial Security Assurance
AMBAC     — American Municipal Bond Assurance Corporation    MBIA     — Municipal Bond Insurance Association
FGIC     — Financial Guaranty Insurance Company     XLCA     — XL Capital Assurance


See Notes to Financial Statements.

35


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock New York Municipal Bond Trust (BQH)

        Principal              
        Amount           Option Call  
    Rating1   (000)      
Description
      Provisions2  
Value

            LONG-TERM INVESTMENTS—155.5%          
            New York—114.5%          
    AA   $2,000   Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40       08/11 @ 101   $ 2,139,960
    A   3,000   Met. Transp. Auth., Dedicated Tax Fund, Ser. A, 5.125%, 11/15/31       11/12 @ 100   3,127,620
    A+   3,000   New York City, GO, Ser. D, 5.375%, 6/01/32       06/12 @ 100   3,145,650
    A3   1,100   New York City Hlth. & Hosp. Corp., Hlth. Sys., Ser. A, 5.375%, 2/15/26       02/12 @ 100   1,136,410
    AA   2,500   New York City Hsg. Dev. Corp., Mult. Fam. Hsg. Rev., Ser. A, 5.50%, 11/01/34       05/12 @ 100   2,589,525
    AAA   2,500   New York City Mun. Wtr. Fin. Auth., Ser. A, 5.25%, 6/15/33, FGIC       06/11 @ 100   2,655,125
    BBB   1,445   New York Cntys. Tobacco Trust III, 6.00%, 6/01/43       06/13 @ 100   1,402,734
            New York Dorm. Auth.,          
    AA-   2,465 3   City Univ., Ser. A, 5.25%, 7/01/11       N/A   2,891,001
    AA-   285   City Univ., Ser. A, 5.25%, 7/01/31       07/11 @ 100   299,478
    AAA   2,500   Iona Coll., 5.125%, 7/01/32, XLCA       07/12 @ 100   2,634,450
    A-   3,000   Lenox Hill Hosp. Oblig. Grp., 5.50%, 7/01/30       07/11 @ 101   3,156,120
    AAA   2,500   Willow Towers Inc. Proj., 5.40%, 2/01/34       08/12 @ 101   2,633,675
    AAA   2,750 4   New York Env. Facs. Corp., Mun. Wtr. Proj., Ser. D, 5.125%, 6/15/31       06/12 @ 100   2,908,978
    Aa1   2,980   New York Mtg. Agcy., Ser. 101, 5.40%, 4/01/32       10/11 @ 100   3,059,953
    AA   5,000   New York Urban Dev. Corp., Ser. A, 5.25%, 3/15/32       03/12 @ 100   5,271,750
            Port Auth. of NY & NJ,          
    AAA   2,750   Ser. 126, 5.25%, 5/15/37, FGIC       05/12 @ 101   2,899,792
    Caa2   2,600   Spec. Oblig., Cont’l/Eastern Proj. LaGuardia, 9.125%, 12/01/15       04/04 @ 100   2,603,666
    A   500   Suffolk Cnty. Indl. Dev. Agcy., Keyspan Port Jefferson Proj., 5.25%, 6/01/27       06/13 @ 100   510,100
    A3   3,000   TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32       07/12 @ 100   2,962,920

                        48,028,907

            Delaware—6.4%          
    NR5   2,500 6   Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52       10/14 @ 100   2,686,550

            Puerto Rico—33.1%          
    BBB   3,650   Children’s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43       05/12 @ 100   3,403,150
    A-   2,750   Puerto Rico, GO, Ser. A, 5.125%, 7/01/31       07/11 @ 100   2,857,883
    A-   2,000   Puerto Rico Elec. Pwr. Auth., Ser. 2, 5.25%, 7/01/31       07/12 @ 101   2,123,140
    A   2,500   Puerto Rico Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38       07/12 @ 100   2,629,300
    A-   2,700   Puerto Rico Pub. Bldgs. Auth., Gov’t. Facs., Ser. D, 5.25%, 7/01/27       07/12 @ 100   2,858,895

                        13,872,368

            Trust Territories—1.5%          
    Ba3   635   Northern Mariana Islands Commerce, Ser. A, 6.75%, 10/01/33       10/13 @ 100   654,482

            Total Investments—155.5% (cost $61,661,544)           $ 65,242,307
            Other assets in excess of liabilities—2.2%           914,901
            Preferred shares at redemption value, including dividends payable—(57.7)%           (24,201,494)

            Net Assets Applicable to Common Shareholders—100%           $ 41,955,714


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   This bond is prerefunded. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the maturity date indicated, typically at a premium to par.  
4   Entire or partial principal amount pledged as collateral for financial futures contracts.  
5   Security is deemed to be of investment grade quality by the investment advisor.  
6   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of February 29, 2004, the Trust held 6.4% of its net assets, with a current market value of $2,686,550, in securities restricted as to resale.  

 


KEY TO ABBREVIATIONS

 

FGIC     — Financial Guaranty Insurance Company    XLCA     — XL Capital Assurance
GO     — General Obligation    


See Notes to Financial Statements.
     

36


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock New York Municipal Income Trust II (BFY)

        Principal                                    
        Amount                             Option Call      
    Rating1   (000)            
Description
                  Provisions2      
Value

                  LONG-TERM INVESTMENTS—155.9%                          
                  New York—143.0%                          
    Aaa   $1,750         Clarence Indl. Dev. Agcy., Civic Fac. Rev., Bristol Village Proj., 6.00%, 1/20/44                   01/13 @ 102       $ 1,927,940
    AA   6,000         Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40                   08/11 @ 101       6,419,880
    BBB   625         Essex Cnty. Indl. Dev. Agcy., Solid Wst. Disp. Rev., Intl. Paper Co. Proj., Ser. A, 5.50%, 10/01/26                   10/12 @ 100       636,688
    A   3,250         Geneva Indl. Dev. Agcy., Civic Fac. Rev., Hobart & William Smith Proj., Ser. A, 5.375%, 2/01/33                   02/13 @ 100       3,433,105
    BBB-   385         Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg., 6.25%, 8/01/34
                 
08/13 @ 100
    
397,097
    AAA   3,515         Long Island Pwr. Auth., Elec. Sys. Rev., Ser. A, Zero Coupon, 6/01/28, FSA                   No Opt. Call       1,100,722
                  Met. Transp. Auth., Ser. A,                          
    AAA   2,000         5.25%, 11/15/31, FGIC                   11/12 @ 100       2,146,080
    AA-   5,000         Ded. Tax Fund, 5.00%, 11/15/30                   11/12 @ 100       5,179,050
    AA-   5,000         Svc. Contract Rev., 5.125%, 1/01/29                   07/12 @ 100       5,212,000
    A   5,000         New York City, GO, Ser. B, 5.75%, 12/01/22                   12/11 @ 100       5,456,300
                  New York City Indl. Dev. Agcy., Ser. A,                          
    AA+   1,000         Eger Harbor Proj., 4.95%, 11/20/32                   11/12 @ 101       1,019,980
    AA+   1,000         Eger Harbor Proj., 5.875%, 5/20/44                   11/12 @ 105       1,121,750
    A   1,500         Lycee Francais de Proj., 5.375%, 6/01/23, ACA                   12/12 @ 100       1,579,830
    AA   5,000         New York City Mun. Wtr. Fin. Auth., Ser. A, 5.125%, 6/15/34                   06/12 @ 100       5,256,950
    AAA   5,000         New York City Trans. Auth., Met. Transp. Auth., Triborough Brdg. & Tunl. Auth., COP, Ser. A, 5.25%, 1/01/29, AMBAC
                 
01/10 @ 101
    
5,301,600
    AA+   5,000         New York City Trans. Fin. Auth., Ser. B, 5.00%, 11/01/27                   11/12 @ 100       5,222,250
    BBB   2,535         New York Cntys. Tobacco Trust III, 6.00%, 6/01/43                   06/13 @ 100       2,460,851
                  New York Dorm. Auth.,                          
    AAA   2,500         Brooklyn Law School, Ser. B, 5.125%, 7/01/30, XLCA                   07/13 @ 100       2,642,025
    Aa3   2,000         Kateri Residence, 5.00%, 7/01/22                   07/13 @ 100       2,053,460
    AA   5,000         Memorial Sloan Kettering Ctr., Ser. 1, 5.00%, 7/01/34                   07/13 @ 100       5,160,500
    AA   2,000         Mount St. Mary Coll., 5.00%, 7/01/32, RAA                   07/13 @ 100       2,075,960
    AAA   2,425         New York Univ., 5.00%, 7/01/31, MBIA                   07/11 @ 100       2,524,449
    AAA   2,500 3         St. Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC                   08/12 @ 100       2,615,600
    AA-   5,000 4         Univ. Dorm. Facs., 5.00%, 7/1/12                   N/A       5,775,700
    A+   5,500         New York Energy Res. & Dev. Auth., Facs. Rev., 4.70%, 6/01/36                   10/05 @ 100       5,556,650
    AA   5,000         New York Urban Dev. Corp., Ser. C-1, 5.00%, 3/15/33                   03/13 @ 100       5,177,550
    Caa2   3,675         Port Auth. of NY & NJ, Spec. Oblig., Cont’l/Eastern Proj. LaGuardia, 9.125%, 12/01/15                   03/04 @ 100       3,680,182
    A   2,500         Suffolk Cnty. Indl. Dev. Agcy., Keyspan Port Jefferson Proj., 5.25%, 6/01/27                   06/13 @ 100       2,550,500
    AA   2,500         Triborough Brdg. & Tunl. Auth., Ser. A, 5.00%, 1/01/32                   01/12 @ 100       2,593,475
    A3   9,000         TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32                   07/12 @ 100       8,888,760

                                              105,166,884

                  Puerto Rico—11.4%                          
    BBB   1,400         Children’s Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43                   05/12 @ 100       1,305,318
    A-   3,750         Puerto Rico, GO, Ser. A, 5.125%, 7/01/31                   07/11 @ 100       3,897,113
                  Puerto Rico Comnwlth. Hwy. & Transp. Auth.,                          
    A   2,000         Ser. D, 5.375%, 7/01/36                   07/12 @ 100       2,142,200
    A   1,000         Ser. G, 5.00%, 7/01/42                   07/13 @ 100       1,030,280

                                              8,374,911

                  Trust Territories—1.5%                          
    Ba3   1,105         Northern Mariana Islands Commerce, Ser. A, 6.75%, 10/01/33                   10/13 @ 100       1,138,901

                  Total Long-Term Investments (cost $109,863,016)                           114,680,696

See Notes to Financial Statements.

37



BlackRock New York Municipal Income Trust II (BFY) (continued)

        Shares              
        (000)      
Description
         
Value

            MONEY MARKET FUND—3.0%          
        2,200   AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $2,200,000)           $ 2,200,000

            Total Investments—158.9% (cost $112,063,016)           $116,880,696
            Other assets in excess of liabilities—1.8%           1,336,610
            Preferred shares at redemption value, including dividends payable—(60.7)%           (44,653,919)

            Net Assets Applicable to Common Shareholders—100%           $ 73,563,387


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Entire or partial principal amount pledged as collateral for financial futures contracts.  
4   This bond is prerefunded. Securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the maturity date indicated, typically at a premium to par.  


KEY TO ABBREVIATIONS

 

ACA     — American Capital Access    GO     — General Obligation
AMBAC     — American Municipal Bond Assurance Corporation    MBIA     — Municipal Bond Insurance Association
COP     — Certificate of Participation   RAA     — Radian Asset Assurance
FGIC     — Financial Guaranty Insurance Company    XLCA     — XL Capital Assurance
FSA     — Financial Security Assurance    


See Notes to Financial Statements.

38


PORTFOLIO OF INVESTMENTS (unaudited)
FEBRUARY 29, 2004


BlackRock Virginia Municipal Bond Trust (BHV)

        Principal                                    
        Amount                             Option Call      
    Rating1   (000)            
Description
                  Provisions2      
Value

                  LONG-TERM INVESTMENTS—153.4%                          
                  Virginia—141.0%                          
    NR3   $1,500         Alexandria Redev. & Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34                   04/08 @ 103       $ 1,560,960
    AAA   1,500 4         Arlington Cnty., GO, 5.00%, 2/01/21                   02/11 @ 100       1,596,255
    A   2,250         Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr. Arlington Hlth. Sys., 5.25%, 7/01/31
                 
07/11 @ 101
     
2,314,508
    NR   1,500         Celebrate North Cmnty. Dev. Auth. Spl. Assmt. Rev., Ser. B, 6.75%, 3/01/34                   03/14 @ 102       1,527,150
    AAA   1,500         Danville Ind. Dev. Auth., Hosp. Rev., Danville Regl. Med. Ctr, 5.25%, 10/01/28, AMBAC                   No Opt. Call       1,695,735
    NR3   1,000         Dulles Town Ctr. Cmnty. Dev. Auth., Spl. Assmt. Tax, Dulles Town Ctr. Proj., 6.25%, 3/01/26                   03/08 @ 102       1,023,570
    AAA   1,500         Fairfax Cnty. Wtr. Auth., Wtr. Rev, 5.00%, 4/01/27                   04/12 @ 100       1,578,510
    AA   1,000         Hampton, GO, 5.00%, 4/01/20                   04/12 @ 101       1,080,190
    A-   1,500         Henrico Cnty. Econ. Dev. Auth., Bon Secours Hlth. Sys. Inc., Ser. A, 5.60%, 11/15/30                   11/12 @ 100       1,562,220
    BBB   1,300         Isle Wight Cnty. Indl. Dev. Auth., Env. Impvt. Rev., Ser. A, 5.70%, 11/01/27                   11/13 @ 100       1,346,527
    AAA   1,500         Met. Arpts. Auth., Arpt. Sys. Rev., Ser. A, 5.25%, 10/01/32, FGIC                   10/12 @ 100       1,577,400
    AAA   1,500         Norfolk Arpt. Auth., Ser. A, 5.125%, 7/01/31, FGIC                   07/11 @ 100       1,560,750
    A   5,000         Pocahontas Pkwy. Assoc., Toll Road Rev., Ser. B, Zero Coupon, 8/15/22, ACA                  
08/08 @ 45.5
     1,720,450
    AA   1,375         Prince William Cnty., COP, 5.00%, 12/01/21                   06/12 @ 100       1,460,016
    AAA   1,250         Richmond Met. Auth., Expwy. Rev., 5.25%, 7/15/22, FGIC                   No Opt. Call       1,441,400
    AAA   3,000         Richmond Pub. Util., 5.00%, 1/15/33, FSA                   01/12 @ 100       3,132,960
                  Virginia Coll. Bldg. Auth., Edl. Facs. Rev., Washington & Lee Univ. Proj., MBIA,                          
    AAA   500         5.25%, 1/01/26                   No Opt. Call       570,785
    AAA   1,000         5.25%, 1/01/31                   No Opt. Call       1,149,060
    AAA   3,000         Virginia Hsg. Dev. Auth., Comnwlth. Mtg. Rev., Ser. H, 5.375%, 7/01/36, MBIA                   07/11 @ 100       3,084,780
                  Virginia Res. Auth.,                          
    AA   1,000         Infrastructure Rev., Ser. A, 5.00%, 5/01/22                   05/11 @ 101       1,058,450
    AA   635         Infrastructure Rev., Ser. A, 5.125%, 5/01/27                   05/11 @ 101       670,801
    AA   1,500         Wtr. & Swr. Sys. Rev., Frederick Cnty. Sanitation Auth. Proj., 5.20%, 10/01/28                   10/10 @ 100       1,577,340

                                              34,289,817

                  Delaware—6.6%                          
    NR3   1,500 5         Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52                   10/14 @ 100       1,611,930

                  Puerto Rico—5.8%                          
    BBB   1,490         Children’s Trust Fund, Tobacco Settlement Rev., 5.375%, 5/15/33                   05/12 @ 100       1,419,508

                  Total Investments—153.4% (cost $34,797,420)                           $ 37,321,255
                  Other assets in excess of liabilities—2.2%                           529,382
                  Preferred shares at redemption value, including dividends payable—(55.6)%                           (13,525,445)

                  Net Assets Applicable to Common Shareholders—100%                           $ 24,325,192


1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   Security is deemed to be of investment grade quality by the investment advisor.  
4   Entire or partial principal amount pledged as collateral for financial futures contracts.  
5   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of February 29, 2004, the Trust held 6.6% of its net assets, with a current market value of $1,611,930, in securities restricted as to resale.  


KEY TO ABBREVIATIONS

 

ACA     — American Capital Access    FSA     — Financial Security Assurance
AMBAC     — American Municipal Bond Assurance Corporation    GO     — General Obligation
COP     — Certificate of Participation   MBIA     — Municipal Bond Insurance Association
FGIC     — Financial Guaranty Insurance Company     


See Notes to Financial Statements.

  

39


STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
February 29, 2004


                             
California
            Insured                 Insured
            Municipal     Municipal     Municipal     Municipal
            Income Trust     Bond Trust     Income Trust II    
Income Trust
            (BYM)     (BBK)     (BLE)     (BCK)
           
   
   
   
Assets
      Investments at value1           $625,321,571    
$246,837,603
   
$541,347,604
   
$123,208,524
      Cash           504,420     545,252     517,299     506,645
      Receivable from investments sold                      
      Interest receivable           6,440,900     3,238,169     7,554,020     1,447,116
      Other assets           51,139     7,068     49,154     8,378

            632,318,030     250,628,092     549,468,077     125,170,663

Liabilities
      Payable to custodian                      
      Variation margin payable           631,750     232,750     536,813     134,750
      Dividends payable — common shares           2,042,917     874,379     1,907,915     395,030
      Investment advisory fee payable           171,422     77,997     170,471     33,939
      Deferred Trustees fees           21,129     11,009     20,212     3,158
      Other accrued expenses           90,036     125,930     87,848     42,480

            2,957,254     1,322,065     2,723,259     609,357

Preferred Shares at Redemption Value
$.001 par value per share and $25,000 liquidation
      value per share, including dividends payable2
        229,006,446     90,509,006     205,571,978     46,508,035

Net Assets Applicable to
      Common Shareholders
          $400,354,330    
$158,797,021
   
$341,172,840
   
$ 78,053,271

Composition of Net Assets Applicable to
      Common Shareholders:
      Par value           $ 26,149    
$ 10,123
   
$ 22,781
   
$ 5,267
      Paid-in capital in excess of par           371,097,993     143,571,298     323,306,246     74,673,578
      Undistributed (distributions in excess of) net
            investment income
          2,144,534     2,525,034     2,756,520     431,298
      Accumulated net realized gain (loss)           (9,063,000)     (614,361)     (7,848,908)     (448,547)
      Net unrealized appreciation           36,148,654     13,304,927     22,936,201     3,391,675

Net assets applicable to common shareholders,
      February 29, 2004
          $400,354,330    
$158,797,021
   
$341,172,840
   
$ 78,053,271

                        
Net asset value per common share3           $15.31     $15.69     $14.98     $14.82

1 Investments at cost           $588,855,964    
$233,415,896
   
$518,142,075
   
$119,749,319
2 Preferred shares outstanding           9,159     3,620     8,222     1,860
3 Common shares outstanding           26,149,334     10,123,055     22,781,072     5,267,067

See Notes to Financial Statements.

40


               
Florida
 
 
               
California
California
Insured
Florida
Maryland
New Jersey
               
Municipal
Municipal
Municipal
Municipal
Municipal
Municipal
               
Bond Trust
Income Trust II
Income Trust
Bond Trust
Bond Trust
Bond Trust
                (BZA)     (BCL)     (BAF)     (BIE)     (BZM)     (BLJ)
               
   
   
   
   
   
Assets
      Investments at value1              
$79,890,753
   
$184,635,692
   
$204,551,843
   
$80,719,961
   
$48,521,596
   
$54,950,626
      Cash               507,429     512,416     532,579     371,856     540,463    
      Receivable from investments sold                   5,150                
      Interest receivable               1,036,450     2,788,216     2,951,750     1,282,688     613,661     650,626
      Other assets               1,442     16,416     14,794     5,269     5,404     7,829

                81,436,074     187,957,890     208,050,966     82,379,774     49,681,124     55,609,081

Liabilities
      Payable to custodian                                   300,080
      Variation margin payable               82,687     223,125     188,125     64,750     38,320     59,063
      Dividends payable — common shares               266,939     648,507     653,912     257,504     143,729     178,331
      Investment advisory fee payable               22,045     58,185     56,304     22,297     13,460     14,992
      Deferred Trustees fees               4,884     5,559     6,171     3,927     4,599     5,285
      Other accrued expenses               62,828     40,114     61,532     60,448     31,729     43,624

                439,383     975,490     966,044     408,926     231,837     601,375

Preferred Shares at Redemption Value
$.001 par value per share and $25,000 liquidation
       value per share, including dividends payable2
            29,980,179     71,956,487     76,011,621     29,778,001     18,000,963     20,228,093

Net Assets Applicable to
       Common Shareholders
             
$51,016,512
$115,025,913
$131,073,301
$52,192,847
$31,448,324
$34,779,613

Composition of Net Assets Applicable to
       Common Shareholders:
      Par value              
$ 3,351
   
$   7,982
   
$ 8,719
   
$ 3,309
   
$ 2,014
   
$ 2,269
      Paid-in capital in excess of par               47,456,833     113,214,438     123,687,058     46,855,683     28,485,946     32,099,779
      Undistributed (distributions in excess of) net
             investment income
              783,933     (56,351)     476,364     691,130     452,338     453,199
      Accumulated net realized gain (loss)               (269,141)     (3,624,633)     (578,641)     (212,116)     (227,028)     25,113
      Net unrealized appreciation               3,041,536     5,484,477     7,479,801     4,854,841     2,735,054     2,199,253

Net assets applicable to common shareholders,
       February 29, 2004
             
$51,016,512
$115,025,913
$131,073,301
$52,192,847
$31,448,324
$34,779,613

             
Net asset value per common share3               $15.22     $14.41     $15.03     $15.77     $15.61     $15.33

1 Investments at cost              
$76,807,824
   
$179,039,249
   
$196,977,572
   
$75,832,770
$45,766,131
$52,721,818
2 Preferred shares outstanding               1,199     2,878     3,040    
1,191
720
809
3 Common shares outstanding               3,351,150     7,981,621     8,718,823    
3,309,483
2,014,422
2,269,366

41


STATEMENTS OF ASSETS AND LIABILITIES (unaudited) (continued)
February 29, 2004


        New York          
        Insured   New York   New York   Virginia
        Municipal   Municipal   Municipal   Municipal
        Income Trust   Bond Trust   Income Trust II   Bond Trust
        (BSE)   (BQH)   (BFY)   (BHV)
       
 
 
 
Assets
Investments at value1     $151,567,438   $65,242,307   $116,880,696   $37,321,255
Cash       545,937   390,324   510,403   217,460
Interest receivable       1,639,764   852,124   1,381,393   485,821
Other assets       9,592   424   10,020   2,604

        153,762,731   66,485,179   118,782,512   38,027,140

Liabilities
Variation margin payable       139,563   53,375   94,500   35,875
Dividends payable — common shares       482,740   208,244   388,652   110,085
Investment advisory fee payable       41,691   18,035   36,827   10,289
Deferred Trustees fees       3,347   4,119   3,839   3,912
Other accrued expenses       50,965   44,198   41,388   16,342

        718,306   327,971   565,206   176,503

Preferred Shares at Redemption Value
$.001 par value per share and $25,000 liquidation
      value per share, including dividends payable2
   
56,002,765
 
24,201,494
 
44,653,919
 
13,525,445

Net Assets Applicable to
      Common Shareholders
      $ 97,041,660   $41,955,714   $ 73,563,387   $24,325,192

Composition of Net Assets Applicable to
      Common Shareholders:
          
      Par value       $ 6,437   $ 2,701   $ 4,935   $ 1,520
      Paid-in capital in excess of par       91,279,438   38,226,462   69,973,071   21,476,225
      Undistributed (distributions in excess of)
            net investment income
     
250,442
 
503,625
 
(125,577)
 
434,714
      Accumulated net realized gain (loss)       (616,397)   (331,117)   (1,059,271)   (93,218)
      Net unrealized appreciation       6,121,740   3,554,043   4,770,229   2,505,951

Net assets applicable to common shareholders,
      February 29, 2004
     
$97,041,660
 
$41,955,714
 
$ 73,563,387
 
$24,325,192

Net asset value per common share3       $15.08   $15.53   $14.91   $16.00

1Investments at cost       $145,375,754   $61,661,544   $112,063,016   $34,797,420
2Preferred shares outstanding       2,240   968   1,786   541
3Common shares outstanding       6,436,539   2,700,991   4,935,268   1,519,916

See Notes to Financial Statements.

42


STATEMENTS OF OPERATIONS (unaudited)
February 29, 2004


                             
California
            Insured                 Insured
            Municipal     Municipal     Municipal     Municipal
            Income Trust    
Bond Trust
   
Income Trust II
   
Income Trust
            (BYM)     (BBK)     (BLE)     (BCK)
           
   
   
   
Investment Income
      Interest income           $15,411,794     $ 6,955,467     $15,044,696     $ 3,034,352

Expenses
      Investment advisory         1,671,792     786,102     1,454,974     330,564
      Transfer agent           7,462     7,462     7,462     7,462
      Custodian           48,920     28,673     57,067     9,834
      Reports to shareholders           32,838     16,129     26,374     11,412
      Trustees           27,118     10,556     22,568     6,552
      Registration           15,707     19,365     6,234     10,774
      Independent accountants           21,814     20,358     21,812     19,779
      Legal           20,240     9,401     20,065     5,860
      Insurance           25,540     9,045     19,711     4,115
      Auction agent           294,130     121,107     273,270     61,037
      Miscellaneous           22,291     15,157     20,388     10,648

            Total expenses           2,187,852     1,043,355     1,929,925     478,037
            Less fees waived by Advisor           (607,924)     (362,817)     (396,811)     (120,205)
            Less fees paid indirectly           (1,211)     (1,593)     (5,015)     (2,463)

            Net expenses           1,578,717     678,945     1,528,099     355,369

Net investment income           13,833,077     6,276,522     13,516,597     2,678,983

Realized and Unrealized Gain (Loss)
      Net realized gain (loss) on:        
            Investments           (2,814,834)     1,180,366     1,385,407     (8,282)
            Futures           (2,058,938)     (760,393)     (1,747,837)     (440,223)

            (4,873,772)     419,973     (362,430)     (448,505)

      Net change in unrealized appreciation/depreciation on:        
            Investments           48,235,104     14,789,670     38,249,181     9,570,001
            Futures           (316,953)     (116,780)     (269,328)     (67,530)

          47,918,151     14,672,890     37,979,853     9,502,471

Net gain           43,044,379     15,092,863     37,617,423     9,053,966

Dividends and Distributions to
      Preferred Shareholders from:
      Net investment income           (1,023,807)     (405,125)     (942,472)     (186,424)
      Net realized gains                       (5,802)

Total dividends and distributions           (1,023,807)     (405,125)     (942,472)     (192,226)

Net Increase in Net Assets Applicable to
      Common Shareholders Resulting
      from Operations
          $55,853,649     $20,964,260     $50,191,548   
$11,540,723

See Notes to Financial Statements.

43


STATEMENTS OF OPERATIONS (unaudited) (continued)
February 29, 2004



 
 
California
Florida
 
 
 
California
Municipal
Insured
Florida
 
 
Municipal
Income
Municipal
Municipal
 
 
Bond Trust
Trust II
Income Trust
Bond Trust
 
 
(BZA)
(BCL)
(BAF)
(BIE)
           
   
   
   
Investment Income
Interest income           $2,191,362     $ 4,890,216     $ 5,033,427     $2,166,534

Expenses
      Investment advisory           255,576     496,969     552,718     258,872
      Transfer agent           7,462     7,462     7,462     7,462
      Custodian           11,010     16,038     35,181     10,569
      Reports to shareholders           7,452     14,014     14,280     7,462
      Trustees           6,370     8,008     9,100     6,370
      Registration           11,435     2,144     10,824     11,278
      Independent accountants           19,514     20,038     19,671     19,510
      Legal           5,991     7,916     7,972     5,989
      Insurance           2,924     6,744     7,729     2,984
      Auction agent           39,902     100,566     97,460     37,159
      Miscellaneous           10,334     11,714     12,226     10,336

            Total expenses           377,970     691,613     774,623     377,991
            Less fees waived by Advisor           (117,958)     (135,537)     (200,988)     (119,479)
            Less fees paid indirectly           (1,537)     (2,061)     (20,985)     (1,096)

      Net expenses           258,475     554,015     552,650     257,416

Net investment income           1,932,887     4,336,201     4,480,777     1,909,118

Realized and Unrealized Gain (Loss)
      Net realized gain (loss) on:                          
            Investments           122,561     192,614     122,757     (324,375)
            Futures           (269,854)     (728,906)     (615,042)     (212,017)

            (147,293)     (536,292)     (492,285)     (536,392)

      Net change in unrealized appreciation/depreciation on:                          
            Investments           5,281,520     13,720,837     12,343,391     4,568,277
            Futures           (41,393)     (111,966)     (94,470)     (32,350)

            5,240,127     13,608,871     12,248,921     4,535,927

Net gain           5,092,834     13,072,579     11,756,636     3,999,535

Dividends and Distributions to
      Preferred Shareholders from:
             
      Net investment income           (105,657)     (319,901)     (300,022)     (131,954)
      Net realized gains           (18,799)         (61,378)     (6,733)

Total dividends and distributions           (124,456)     (319,901)     (361,400)     (138,687)

Net Increase in Net Assets Applicable to
      Common Shareholders Resulting
      from Operations
          $6,901,265     $17,088,879     $15,876,013     $5,769,966

See Notes to Financial Statements.

44


 
 
 
 
New York
 
 
 
Maryland
New Jersey
Insured
New York
New York
Virginia
 
Municipal
Municipal
Municipal
Municipal
Municipal
Municipal
 
Bond Trust
Bond Trust
Income Trust
Bond Trust
Income Trust II
Bond Trust
 
(BZM)
(BLJ)
(BSE)
(BQH)
(BFY)
(BHV)
                 
   
   
   
   
   
Investment Income
Interest income                 $1,257,655     $1,497,259     $ 3,695,637     $1,748,603     $2,929,036     $ 975,328

Expenses
      Investment advisory                 156,165     173,069     406,275     208,956     314,881     118,750
      Transfer agent                 7,462     7,462     7,462     7,462     7,462     7,462
      Custodian                 9,559     10,601     24,985     10,145     8,994     9,595
      Reports to shareholders                 6,518     7,403     12,388     7,434     8,596     5,431
      Trustees                 6,188     6,188     6,734     6,370     6,552     6,188
      Registration                 605     699     10,790     11,435     1,296     440
      Independent accountants                 19,343     19,368     19,682     19,432     19,685     10,745
      Legal                 5,294     5,303     5,841     5,329     5,795     5,278
      Insurance                 1,797     2,107     5,397     2,427     4,259     1,450
      Auction agent                 24,957     27,735     72,891     32,694     60,525     19,372
      Miscellaneous                 9,138     8,266     11,131     10,248     10,608     5,826

            Total expenses                 247,026     268,201     583,576     321,932     448,653     190,537
            Less fees waived by Advisor                 (72,076)     (79,878)     (147,737)     (96,441)     (85,878)     (54,809)
            Less fees paid indirectly                 (335)     (1,319)     (16,158)     (1,045)     (1,334)     (371)

      Net expenses                 174,615     187,004     419,681     224,446     361,441     135,357

Net investment income                 1,083,040     1,310,255     3,275,956     1,524,157     2,567,595     839,971

Realized and Unrealized Gain (Loss)
      Net realized gain (loss) on:          
            Investments                 (110,340)     218,156     (98,869)     (14,032)     (28,034)     (62,790)
            Futures                 (124,463)     (192,953)     (459,489)     (174,348)     (308,552)     (117,743)

                  (234,803)     25,203     (558,358)     (188,380)     (336,586)     (180,533)

      Net change in unrealized appreciation/depreciation on:          
            Investments                 2,635,277     3,492,190     10,915,628     3,772,790     7,959,674     2,408,994
            Futures                 (20,412)     (29,555)     (69,944)     (26,720)     (47,451)     (17,884)

                  2,614,865     3,462,635     10,845,684     3,746,070     7,912,223     2,391,110

Net gain                 2,380,062     3,487,838     10,287,326     3,557,690     7,575,637     2,210,577

Dividends and Distributions to
       Preferred Shareholders from:
         
      Net investment income                 (79,784)     (78,448)     (225,408)     (83,914)     (198,389)     (52,856)
      Net realized gains                     (9,757)                

Total dividends and distributions                 (79,784)     (88,205)     (225,408)     (83,914)     (198,389)     (52,856)

Net Increase in Net Assets Applicable to
       Common Shareholders Resulting
       from Operations
                $3,383,318     $4,709,888     $13,337,874     $4,997,933     $9,944,843     $2,997,692

45


STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended February 29, 2004 (unaudited), and for the period1 ended August 31, 2003


  Insured Municipal Income Trust   Municipal Bond Trust
  (BYM)   (BBK)
 
 
  2004   2003   2004   2003
 
 
 
 
Increase (Decrease) in Net Assets Applicable to              
         Common Shareholders    
       
Operations    
       
      Net investment income
$
13,833,077
$
21,617,620
$
6,276,522
$
12,879,742
      Net realized gain (loss)   (4,873,772)  
(4,190,174)
    419,973     (805,556)
      Net change in unrealized appreciation/      
           
            depreciation   47,918,151  
(11,769,497)
    14,672,890     (6,670,938)
      Dividends and distributions to preferred      
           
            shareholders from:      
           
            Net investment income   (1,023,807)  
(1,705,605)
    (405,125)     (995,851)
            Net realized gains  
    (68,481)

      Net increase (decrease) in net assets resulting      
           
            from operations 55,853,649  
3,952,344
  20,964,260   4,338,916

Dividends and Distributions to      
           
         Common Shareholders from:      
           
      Net investment income   (12,257,500)  
(18,333,305)
    (5,246,268)     (10,290,066)
      Net realized gains  
    (529,092)

Total dividends and distributions (12,257,500)  
(18,333,305)
  (5,246,268)   (10,819,158)

Capital Share Transactions:      
           
      Net proceeds from the issuance of      
           
            common shares    
343,210,001
       
      Net proceeds from the underwriters’      
           
            over-allotment option exercised    
28,590,000
       
      Underwriting discounts and unused (additional)      
           
            offering costs relating to the issuance of      
           
            preferred shares   (2,051)  
(2,657,181)
    128,162    
      Reinvestment of common dividends 322,573  
1,675,800
    178,549

Net proceeds from capital share transactions 320,522  
370,818,620
  128,162   178,549

Total increase (decrease) 43,916,671  
356,437,659
  15,846,154   (6,301,693)

Net Assets Applicable to      
           
         Common Shareholders:      
           
Beginning of period 356,437,659  
  142,950,867   149,252,560

End of period
$
400,354,330
$
356,437,659
$
158,797,021
$
142,950,867

End of period undistributed net investment income
$
2,144,534
$
1,592,764
$
2,525,034
$
1,899,905
                       

                     
1 Commencements of investment operations for the Insured Trusts were October 31, 2002. This information includes the initial investments by BlackRock Funding, Inc. The other Trusts’ statements are for a full year.

See Notes to Financial Statements.

46


        California Insured   California Municipal
  Municipal Income Trust II   Municipal Income Trust   Bond Trust
(BLE)
  (BCK)   (BZA)
 
 
 
2004
  2003   2004   2003   2004   2003
 
 
 
 
 
 
                                   
Increase (Decrease) in Net Assets Applicable to                                  
         Common Shareholders                                  
Operations                                  
      Net investment income
$
13,516,597
$
25,913,002
$
2,678,983
$
4,154,466
$
1,932,887
$
3,923,657
      Net realized gain (loss)   (362,430)     (7,486,568)     (448,505)     73,698     (147,293)     333,162
      Net change in unrealized appreciation/                                  
            depreciation   37,979,853     (16,689,310)     9,502,471     (6,110,796)     5,240,127     (4,389,282)
      Dividends and distributions to preferred                                  
            shareholders from:                                  
            Net investment income   (942,472)     (2,206,764)     (186,424)     (309,490)     (105,657)     (285,766)
            Net realized gains       (5,802)     (18,799)   (36,465)











      Net increase (decrease) in net assets resulting                                  
            from operations   50,191,548   (469,640)   11,540,723   (2,192,122)   6,901,265   (454,694)











Dividends and Distributions to                                  
         Common Shareholders from:                                  
      Net investment income   (11,447,483)     (22,875,695)     (2,369,969)     (3,551,261)     (1,601,633)     (3,151,958)
      Net realized gains       (67,945)     (223,187)   (278,186)











Total dividends and distributions
  (11,447,483)   (22,875,695)   (2,437,914)   (3,551,261)   (1,824,820)   (3,430,144)











Capital Share Transactions:                                  
      Net proceeds from the issuance of                                  
            common shares               71,605,001        
      Net proceeds from the underwriters’                                  
            over-allotment option exercised   (9,000)     4,288,500         3,573,750        
      Underwriting discounts and unused (additional)                                  
            offering costs relating to the issuance of                                  
            preferred shares       (2,294,668)         (609,518)         (21,849)
      Reinvestment of common dividends   101,149   205,295   40,555   84,057     12,499











Net proceeds from capital share transactions
  92,149   2,199,127   40,555   74,653,290     (9,350)



 






Total increase (decrease)
  38,836,214   (21,146,208)   9,143,364   68,909,907   5,076,445   (3,894,188)











Net Assets Applicable to                                  
         Common Shareholders:                                  
Beginning of period   302,336,626   323,482,834   68,909,907     45,940,067   49,834,255











End of period
$
341,172,840
$
302,336,626
$
78,053,271
$
68,909,907
$
51,016,512
$
45,940,067












End of period undistributed net investment income $ 2,756,520   $ 1,629,878   $ 431,298   $ 308,708   $ 783,933   $ 558,336

47


STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended February 29, 2004 (unaudited), and for the period1 ended August 31, 2003


 

  California   Florida Insured
  Municipal Income Trust II   Municipal Income Trust
  (BCL)   (BAF)
 
 
  2004   2003   2004   2003
 
 
 
 
               
Increase (Decrease) in Net Assets Applicable to              
         Common Shareholders              
Operations              
      Net investment income
$
4,336,201
$
8,139,709
$
4,480,777
$
6,649,133
      Net realized gain (loss)   (536,292)     (3,089,325)     (492,285)     632,254
      Net change in unrealized appreciation/                      
            depreciation   13,608,871     (8,940,916)     12,248,921     (4,769,120)
      Dividends and distributions to preferred                      
            shareholders from:                      
            Net investment income   (319,901)     (699,743)     (300,022)     (563,529)
            Net realized gains     (61,378)  








Net increase (decrease) in net assets resulting                      
      from operations 17,088,879   (4,590,275)   15,876,013   1,948,738








Dividends and Distributions to                      
         Common Shareholders from:                      
      Net investment income   (3,890,461)     (7,764,974)     (3,923,470)     (5,881,358)
      Net realized gains     (657,399)  








Total dividends and distributions (3,890,461)   (7,764,974)   (4,580,869)   (5,881,358)








Capital Share Transactions:                      
      Net proceeds from the issuance of                      
            common shares               114,493,001
      Net proceeds from the underwriters’                      
            over-allotment option exercised   (4,500)     2,144,250         10,006,500
      Underwriting discounts and additional offering                      
            costs relating to the issuance of preferred                      
            shares       (849,475)         (944,848)
      Reinvestment of common dividends 93,848   222,296     156,124








Net proceeds from capital share transactions 89,348   1,517,071     123,710,777








Total increase (decrease) 13,287,766   (10,838,178)   11,295,144   119,778,157




 


Net Assets Applicable to                      
         Common Shareholders:                      
Beginning of period 101,738,147   112,576,325   119,778,157  








End of period
$
115,025,913
$
101,738,147
$
131,073,301
$
119,778,157












End of period undistributed (distributions in excess)                      
      of net investment income
$
(56,351)
$
(182,190)
$
476,364
$
219,079
                       

                   
1 Commencements of investment operations for the Insured Trusts were October 31, 2002. This information includes the initial investments by BlackRock Funding, Inc. The other Trusts’ statements are for a full year.

See Notes to Financial Statements.

48


     
  Florida   Maryland   New Jersey
  Municipal Bond Trust   Municipal Bond Trust   Municipal Bond Trust
(BIE)
  (BZM)   (BLJ)
 
 
 
2004
  2003   2004   2003   2004   2003
 
 
 
 
 
 
                                   
                                   
Increase (Decrease) in Net Assets Applicable to                                  
         Common Shareholders                                  
Operations                                  
      Net investment income
$
1,909,118
$
3,763,594
$
1,083,040
$
2,158,263
$
1,310,255
$
2,593,490
      Net realized gain (loss)   (536,392)     617,109     (234,803)     93,425     25,203     192,616
      Net change in unrealized appreciation/                                  
            depreciation   4,535,927     (2,067,781)     2,614,865     (1,028,809)     3,462,635     (2,102,018)
      Dividends and distributions to preferred                                  
            shareholders from:                                  
            Net investment income   (131,954)     (294,203)     (79,784)     (192,706)     (78,448)     (194,504)
            Net realized gains   (6,733)   (25,515)     (11,022)   (9,757)   (16,272)













Net increase (decrease) in net assets resulting                                  
      from operations   5,769,966   1,993,204   3,383,318   1,019,151   4,709,888   473,312













Dividends and Distributions to                                  
         Common Shareholders from:                                  
      Net investment income   (1,545,024)     (3,038,237)     (862,266)     (1,696,742)     (1,069,986)     (2,110,955)
      Net realized gains   (74,132)   (186,453)     (72,550)   (111,653)   (143,682)













Total dividends and distributions   (1,619,156)   (3,224,690)   (862,266)   (1,769,292)   (1,181,639)   (2,254,637)













Capital Share Transactions:                                  
      Net proceeds from the issuance of                                  
            common shares                      
      Net proceeds from the underwriters’                                  
            over-allotment option exercised                      
      Underwriting discounts and additional offering                                  
            costs relating to the issuance of preferred                                  
            shares       (28,492)         (50,675)         (48,427)
      Reinvestment of common dividends     18,121   4,619   18,519   25,241   75,007













Net proceeds from capital share transactions     (10,371)   4,619   (32,156)   25,241   26,580











 
Total increase (decrease)   4,150,810   (1,241,857)   2,525,671   (782,297)   3,553,490   (1,754,745)













Net Assets Applicable to                                  
         Common Shareholders:                                  
Beginning of period   48,042,037   49,283,894   28,922,653   29,704,950   31,226,123   32,980,868













End of period
$
52,192,847
$
48,042,037
$
31,448,324
$
28,922,653
$
34,779,613
$
31,226,123


















End of period undistributed (distributions in excess)                                  
      of net investment income
$
691,130
$
458,990
$
452,338
$
311,348
$
453,199
$
291,378

49


STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended February 29, 2004 (unaudited), and for the period1 ended August 31, 2003


 

  New York Insured   New York
  Municipal Income Trust   Municipal Bond Trust
  (BSE)   (BQH)
 
 
  2004   2003   2004   2003
 
 
 
 
               
Increase (Decrease) in Net Assets Applicable to              
         Common Shareholders              
Operations              
      Net investment income
$
3,275,956
$
4,829,121
$
1,524,157
$
3,032,080
      Net realized gain (loss)   (558,358)     (58,730)     (188,380)     (143,156)
      Net change in unrealized appreciation/                      
            depreciation   10,845,684     (4,723,944)     3,746,070     (1,803,841)
      Dividends and distributions to preferred                      
            shareholders from:                      
            Net investment income   (225,408)     (420,505)     (83,914)     (249,849)
            Net realized gains       (21,352)








Net increase (decrease) in net assets resulting                      
      from operations 13,337,874   (374,058)   4,997,933   813,882








Dividends and Distributions to                      
         Common Shareholders from:                      
      Net investment income   (2,895,837)     (4,327,194)     (1,249,459)     (2,475,984)
      Net realized gains       (155,250)








Total dividends and distributions (2,895,837)   (4,327,194)   (1,249,459)   (2,631,234)








Capital Share Transactions:                      
      Net proceeds from issuance of common shares       85,901,501        
      Net proceeds from the underwriters’                      
            over-allotment option exercised       5,718,000        
      Underwriting discounts and additional offering                      
            costs relating to the issuance of preferred                      
            shares       (711,970)         (37,459)
      Reinvestment of common dividends 168,608   224,736    








Net proceeds from capital share transactions 168,608   91,132,267     (37,459)








Total increase (decrease) 10,610,645   86,431,015   3,748,474   (1,854,811)








Net Assets Applicable to                      
         Common Shareholders:                      
Beginning of period 86,431,015     38,207,240   40,062,051








End of period
$
97,041,660
$
86,431,015
$
41,955,714
$
38,207,240












End of period undistributed (distributions in excess)
      of net investment income
$
250,442
$
95,731
$
503,625
$
312,841
                       

                     
1 Commencements of investment operations for the Insured Trusts were October 31, 2002. This information includes the initial investments by BlackRock Funding, Inc. The other Trusts’ statements are for a full year.
                   

See Notes to Financial Statements.

50


 
New York
Virginia
 
Municipal Income Trust II
Municipal Bond Trust
 
(BFY)
(BHV)
   

 
2004
2003
2004
  2003
   
 
 
 
                       
                       
Increase (Decrease) in Net Assets Applicable to                      
         Common Shareholders                      
Operations                      
      Net investment income
$
2,567,595
$
4,857,157
$
839,971
$
1,655,091
      Net realized gain (loss)   (336,586)     (722,685)     (180,533)     237,709
      Net change in unrealized appreciation/                      
            depreciation   7,912,223     (3,853,513)     2,391,110     (910,742)
      Dividends and distributions to preferred                      
            shareholders from:                      
            Net investment income   (198,389)     (476,593)     (52,856)     (121,007)
            Net realized gains         (22,888)









Net increase (decrease) in net assets resulting                      
      from operations   9,944,843   (195,634)   2,997,692   838,163









Dividends and Distributions to                      
         Common Shareholders from:                      
      Net investment income   (2,331,912)     (4,661,882)     (659,923)     (1,289,511)
      Net realized gains         (151,377)









Total dividends and distributions   (2,331,912)   (4,661,882)   (659,923)   (1,440,888)









Capital Share Transactions:                      
      Net proceeds from issuance of common shares              
      Net proceeds from the underwriters’                      
            over-allotment option exercised   (2,250)     1,072,125        
      Underwriting discounts and additional offering                      
            costs relating to the issuance of preferred                      
            shares       (567,282)         (58,033)
      Reinvestment of common dividends     29,662   43,558   60,042









Net proceeds from capital share transactions   (2,250)   534,505   43,558   2,009









Total increase (decrease)   7,610,681   (4,323,011)   2,381,327   (600,716)









Net Assets Applicable to                      
         Common Shareholders:                      
Beginning of period   65,952,706   70,275,717   21,943,865   22,544,581









End of period
$
73,563,387
$
65,952,706
$
24,325,192
$
21,943,865












End of period undistributed (distributions in excess)                      
      of net investment income
$
(125,577)  
$
(162,871)  
$
434,714  
$
307,522

51


FINANCIAL HIGHLIGHTS


BlackRock Insured Municipal Income Trust (BYM)

            For the period
        Six Months Ended   October 31, 20021
        February 29, 2004   through
        (unaudited)   August 31, 2003
       
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 13.64   $ 14.332

Investment operations:
      Net investment income       0.53   0.83
      Net realized and unrealized gain (loss)       1.65   (0.62)
      Dividends to preferred shareholders from net investment income       (0.04)   (0.07)

Net increase from investment operations       2.14   0.14

Dividends to common shareholders from net investment income       (0.47)   (0.70)

Capital charges with respect to issuance of:
      Common shares         (0.03)
      Preferred shares         (0.10)

Total capital charges         (0.13)

Net asset value, end of period       $ 15.31   $ 13.64

Market price, end of period       $ 14.70   $ 13.51

TOTAL INVESTMENT RETURN3       12.43%   (5.39)%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4, 5
Expenses after fees waived and paid indirectly       0.83%   0.77%
Expenses before fees waived and paid indirectly       1.15%   1.10%
Net investment income after fees waived and paid indirectly
      and before preferred share dividends
      7.28%   6.95%
Preferred share dividends       0.54%   0.55%
Net investment income available to
      common shareholders
      6.74%   6.40%
SUPPLEMENTAL DATA:     
Average net assets of common shareholders (000)       $382,289   $372,269
Portfolio turnover       24%   46%
Net assets of common shareholders,
      end of period (000)
      $400,354   $356,438
Preferred shares value outstanding (000)       $228,975   $228,975
Asset coverage per preferred share, end of period       $ 68,715 
$ 63,919 

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

See Notes to Financial Statements.

52


FINANCIAL HIGHLIGHTS


BlackRock Municipal Bond Trust (BBK)

                For the period
        Six Months Ended       April 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 14.12   $ 14.76   $ 14.332

Investment operations:
      Net investment income       0.62   1.28   0.31
      Net realized and unrealized gain (loss)       1.50   (0.74)   0.52
      Dividends and distributions to preferred shareholders:
             Net investment income
      (0.04)   (0.10)   (0.03)
            Net realized gains         (0.01)  

Net increase from investment operations       2.08   0.43   0.80

Dividends and distributions to common shareholders:
      Net investment income
      (0.52)   (1.02)   (0.25)
      Net realized gains         (0.05)  

Total dividends and distributions       (0.52)   (1.07)   (0.25)

Capital changes with respect to issuance of:
      Common shares           (0.03)
      Preferred shares       0.01     (0.09)

Total capital changes       0.01     (0.12)

Net asset value, end of period       $ 15.69   $ 14.12   $ 14.76

Market price, end of period       $ 15.01   $ 13.66   $ 14.90

TOTAL INVESTMENT RETURN3       13.79%   (1.20)%   1.07%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       0.89%5   0.91%   0.90%5
Expenses before fees waived and paid indirectly       1.37%5   1.41%   1.32%6
Net investment income after fees waived and paid indirectly
       and before preferred share dividends
      8.27%5   8.66%   6.35%5
Preferred share dividends       0.53%5   0.67%   0.53%5
Net investment income available to
       common shareholders
      7.74%5   7.99%   5.82%5
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)       $152,707   $148,670   $144,196
Portfolio turnover       23%   21%   22%
Net assets of common shareholders,
       end of period (000)
      $158,797   $142,951   $149,253
Preferred shares value outstanding (000)       $ 90,500   $ 90,500   $ 90,500
Asset coverage per preferred share, end of period       $ 68,869   $ 64,491 
$ 66,233

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

53


FINANCIAL HIGHLIGHTS


BlackRock Municipal Income Trust II (BLE)

                For the period
        Six Months Ended       July 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 13.28   $ 14.40   $ 14.332

Investment operations:
      Net investment income       0.59   1.14   0.03
      Net realized and unrealized gain (loss)       1.65   (1.06)   0.07
      Dividends to preferred shareholders from net investment income       (0.04)   (0.10)  

Net increase (decrease) from investment operations       2.20   (0.02)   0.10

Dividends to common shareholders from net investment income       (0.50)   (1.00)  

Capital charges with respect to issuance of:
      Common shares           (0.03)
      Preferred shares         (0.10)  

Total capital charges         (0.10)   (0.03)

Net asset value, end of period       $ 14.98   $ 13.28   $ 14.40

Market price, end of period       $ 14.53   $ 13.11   $ 15.00

TOTAL INVESTMENT RETURN3       14.84%   (6.00)%   0.00%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       0.94%5   0.92%   0.65%6
Expenses before fees waived and paid indirectly       1.19%5   1.17%   0.80%6
Net investment income after fees waived and paid indirectly
      and before preferred share dividends
      8.33%5   8.15%   2.82%6
Preferred share dividends       0.58%5   0.69%   —%6
Net investment income available to
      common shareholders
      7.75%5   7.46%   2.82%6
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)       $326,439   $318,014   $307,165
Portfolio turnover       25%   118%   —%
Net assets of common shareholders,
      end of period (000)
      $341,173   $302,337   $323,483
Preferred shares value outstanding (000)       $205,550   $205,550   $   —
Asset coverage per preferred share, end of period       $ 66,498   $ 61,774  
$   —

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
6   These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

54


FINANCIAL HIGHLIGHTS


BlackRock California Insured Municipal Income Trust (BCK)

            For the period
        Six Months Ended   October 31, 20021
        February 29, 2004   through
        (unaudited)   August 31, 2003
       
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 13.09   $ 14.332

Investment operations:
      Net investment income       0.51   0.79
      Net realized and unrealized gain (loss)       1.72   (1.15)
      Dividends to preferred shareholders from net investment income       (0.04)   (0.06)

      Net increase (decrease) from investment operations       2.19   (0.42)

Dividends to common shareholders:
      Net investment income
      (0.45)   (0.67)
      Net realized gains       (0.01)  

Total dividends and distributions       (0.46)   (0.67)

Capital charges with respect to issuance of:
      Common shares         (0.03)
      Preferred shares         (0.12)

Total capital charges         (0.15)

Net asset value, end of period       $ 14.82   $ 13.09

Market price, end of period       $ 14.34   $ 13.01

TOTAL INVESTMENT RETURN3       13.91%   (8.98)%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4, 5
Expenses after fees waived and paid indirectly       0.96%   0.92%
Expenses before fees waived and paid indirectly       1.29%   1.27%
Net investment income after fees waived and paid indirectly
      and before preferred share dividends
      7.24%   6.69%
Preferred share dividends       0.50%   0.50%
Net investment income available to
      common shareholders
      6.74%   6.19%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)       $ 74,366   $ 74,302
Portfolio turnover       —%   41%
Net assets of common shareholders,
      end of period (000)
      $ 78,053   $ 68,910
Preferred shares value outstanding (000)       $ 46,500   $ 46,500
Asset coverage per preferred share, end of period       $ 66,968  
$ 62,052

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

See Notes to Financial Statements.

55


FINANCIAL HIGHLIGHTS


BlackRock California Municipal Bond Trust (BZA)

                For the period
        Six Months Ended       April 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 13.71   $ 14.87   $ 14.332

Investment operations:
      Net investment income       0.58   1.18   0.28
      Net realized and unrealized gain (loss)       1.52   (1.21)   0.63
      Dividends and distributions to preferred shareholders:
             Net investment income
      (0.03)   (0.09)   (0.02)
            Net realized gains       (0.01)   (0.01)  

Net increase (decrease) from investment operations       2.06   (0.13)   0.89

Dividends and distributions to common shareholders:
      Net investment income
      (0.48)   (0.94)   (0.23)
      Net realized gains       (0.07)   (0.08)  

Total dividends and distributions       (0.55)   (1.02)   (0.23)

Capital charges with respect to issuance of:
      Common shares           (0.03)
      Preferred shares         (0.01)   (0.09)

Total capital charges         (0.01)   (0.12)

Net asset value, end of period       $ 15.22   $ 13.71   $ 14.87

Market price, end of period       $ 14.23   $ 13.15   $ 14.58

TOTAL INVESTMENT RETURN3       12.49%   (2.92)%   (1.23)%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       1.06%5   1.06%   1.12%4
Expenses before fees waived and paid indirectly       1.55%5   1.54%   1.53%4
Net investment income after fees waived and paid indirectly
       and before preferred share dividends
      7.92%5   7.99%   5.75%5
Preferred share dividends       0.43%5   0.58%   0.49%5
Net investment income available to
       common shareholders
      7.49%5   7.41%   5.26%5
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)       $ 49,096   $ 49,107   $ 47,390
Portfolio turnover       10%   22%   18%
Net assets of common shareholders,
       end of period (000)
      $ 51,017   $ 45,940   $ 49,834
Preferred shares value outstanding (000)       $ 29,975   $ 29,975   $ 29,975
Asset coverage per preferred share, end of period       $ 67,554   $ 63,318  
$ 66,569

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

56


FINANCIAL HIGHLIGHTS


BlackRock California Municipal Income Trust II (BCL)

                For the period
        Six Months Ended       July 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 12.76   $ 14.42   $ 14.332

Investment operations:
      Net investment income       0.55   1.02   0.02
      Net realized and unrealized gain (loss)       1.63   (1.51)   0.10
      Dividends to preferred shareholders from net investment income       (0.04)   (0.09)  

Net increase (decrease) from investment operations       2.14   (0.58)   0.12

Dividends to common shareholders from net investment income       (0.49)   (0.97)  

Capital charges with respect to issuance of:
      Common shares           (0.03)
      Preferred shares         (0.11)  

Total capital charges         (0.11)   (0.03)

Net asset value, end of period       $ 14.41   $ 12.76   $ 14.42

Market price, end of period       $ 13.96   $ 13.01   $ 15.01

TOTAL INVESTMENT RETURN3       11.16%   (6.94)%   0.07%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       1.02%5   0.97%   1.05%6
Expenses before fees waived and paid indirectly       1.27%5   1.23%   1.20%6
Net investment income after fees waived and paid indirectly
      and before preferred share dividends
      7.94%5   7.38%   1.35%6
Preferred share dividends       0.59%5   0.63%   —%6
Net investment income available to
      common shareholders
      7.35%5   6.75%   1.35%6
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)       $109,759   $110,286   $105,895
Portfolio turnover       13%   85%   —%
Net assets of common shareholders,
      end of period (000)
      $115,026   $101,738   $112,576
Preferred shares value outstanding (000)       $ 71,950   $ 71,950   $  —
Asset coverage per preferred share, end of period       $ 64,970   $ 60,353  
$  —

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
6   These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

57


FINANCIAL HIGHLIGHTS


BlackRock Florida Insured Municipal Income Trust (BAF)

            For the period
        Six Months Ended   October 31, 20021
        February 29, 2004   through
        (unaudited)   August 31, 2003
       
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 13.74   $ 14.332

Investment operations:
      Net investment income       0.51   0.75
      Net realized and unrealized gain (loss)       1.35   (0.47)
      Dividends and distributions to preferred shareholders:
             Net investment income
      (0.03)   (0.06)
            Net realized gains       (0.01)  

Net increase from investment operations       1.82   0.22

Dividends and distributions to common shareholders:
      Net investment income
      (0.45)   (0.67)
      Net realized gains       (0.08)  

Total dividends and distributions       (0.53)   (0.67)

Capital charges with respect to issuance of:
      Common shares         (0.03)
      Preferred shares         (0.11)

Total capital charges         (0.14)

Net asset value, end of period       $ 15.03   $ 13.74

Market price, end of period       $ 14.95   $ 13.20

TOTAL INVESTMENT RETURN3       17.45%   (7.78)%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4, 5
Expenses after fees waived and paid indirectly       0.88%   0.83%
Expenses before fees waived and paid indirectly       1.24%   1.17%
Net investment income after fees waived and paid indirectly
       and before preferred share dividends
      7.15%   6.39%
Preferred share dividends       0.48%   0.54%
Net investment income available to
       common shareholders
      6.67%   5.85%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)       $126,093   $124,543
Portfolio turnover       1%   50%
Net assets of common shareholders,
       end of period (000)
      $131,073   $119,778
Preferred shares value outstanding (000)       $ 76,000   $ 76,000
Asset coverage per preferred share, end of period       $ 68,120  
$ 64,404

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
   
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

58


FINANCIAL HIGHLIGHTS


BlackRock Florida Municipal Bond Trust (BIE)

                For the period
        Six Months Ended       April 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 14.52   $ 14.90   $ 14.332

Investment operations:
      Net investment income       0.58   1.14   0.26
      Net realized and unrealized gain (loss)       1.20   (0.43)   0.68
      Dividends and distributions to preferred shareholders:
             Net investment income
      (0.04)   (0.09)   (0.02)
            Net realized gains         (0.01)  

Net increase from investment operations       1.74   0.61   0.92

Dividends and distributions to common shareholders:
      Net investment income
      (0.47)   (0.92)   (0.23)
      Net realized gains       (0.02)   (0.06)  

Total dividends and distributions       (0.49)   (0.98)   (0.23)

Capital charges with respect to issuance of:
      Common shares           (0.03)
      Preferred shares         (0.01)   (0.09)

Total capital charges         (0.01)   (0.12)

Net asset value, end of period       $ 15.77   $ 14.52   $ 14.90

Market price, end of period       $ 15.04   $ 13.55   $ 14.92

TOTAL INVESTMENT RETURN3       14.76%   (2.90)%   1.03%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       1.03%5   1.05%   1.12%5
Expenses before fees waived and paid indirectly       1.51%5   1.53%   1.54%5
Net investment income after fees waived and paid indirectly
       and before preferred share dividends
      7.63%5   7.54%   5.36%5
Preferred share dividends       0.53%5   0.59%   0.49%5
Net investment income available to
       common shareholders
      7.10%5   6.95%   4.87%5
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)       $ 50,315   $ 49,915   $ 46,792
Portfolio turnover       4%   19%   —%
Net assets of common shareholders,
       end of period (000)
      $ 52,193   $ 48,042   $ 49,284
Preferred shares value outstanding (000)       $ 29,775   $ 29,775   $ 29,775
Asset coverage per preferred share, end of period       $ 68,825  
$ 65,340
 
$ 66,383

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

59


FINANCIAL HIGHLIGHTS


BlackRock Maryland Municipal Bond Trust (BZM)

                For the period
        Six Months Ended       April 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 14.36   $ 14.76   $ 14.332

Investment operations:
      Net investment income       0.54   1.07   0.25
      Net realized and unrealized gain (loss)       1.18   (0.45)   0.53
      Dividends and distributions to preferred shareholders:
             Net investment income
      (0.04)   (0.10)   (0.03)
            Net realized gains         (0.01)  

Net increase from investment operations       1.68   0.51   0.75

Dividends and distributions to common shareholders:
      Net investment income
      (0.43)   (0.84)   (0.21)
      Net realized gains         (0.04)  

Total dividends and distributions       (0.43)   (0.88)   (0.21)

Capital charges with respect to issuance of:
      Common shares           (0.02)
      Preferred shares         (0.03)   (0.09)

Total capital charges         (0.03)   (0.11)

Net asset value, end of period       $ 15.61   $ 14.36   $ 14.76

Market price, end of period       $ 15.69   $ 13.90   $ 14.95

TOTAL INVESTMENT RETURN3       16.18%   (1.32)%   1.10%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       1.16%5   1.15%   1.12%5
Expenses before fees waived and paid indirectly       1.64%5   1.63%   1.54%5
Net investment income after fees waived and paid indirectly
       and before preferred share dividends
      7.18%5   7.18%   5.30%5
Preferred share dividends       0.53%5   0.64%   0.54%5
Net investment income available to
       common shareholders
      6.65%5   6.54%   4.76%5
SUPPLEMENTAL DATA:      
Average net assets of common shareholders (000)       $ 30,315   $ 30,069   $ 28,153
Portfolio turnover       7%   14%   1%
Net assets of common shareholders,
       end of period (000)
      $ 31,448   $ 28,923   $ 29,705
Preferred shares value outstanding (000)       $ 18,000   $ 18,000   $ 18,000
Asset coverage per preferred share, end of period       $ 68,680  
$ 65,172
  $ 66,259

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

60


FINANCIAL HIGHLIGHTS


BlackRock New Jersey Municipal Bond Trust (BLJ)

                For the period
        Six Months Ended       April 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 13.77   $ 14.58   $ 14.332

Investment operations:
      Net investment income       0.57   1.15   0.25
      Net realized and unrealized gain (loss)       1.54   (0.85)   0.37
      Dividends and distributions to preferred shareholders:
             Net investment income
      (0.03)   (0.09)   (0.02)
            Net realized gains         (0.01)  

Net increase from investment operations       2.08   0.20   0.60

Dividends and distributions to common shareholders:
      Net investment income
     
(0.47)
 
(0.93)
 
(0.23)
      Net realized gains       (0.05)   (0.06)  

Total dividends and distributions       (0.52)   (0.99)   (0.23)

Capital charges with respect to issuance of:
      Common shares           (0.03)
      Preferred shares         (0.02)   (0.09)

Total capital charges         (0.02)   (0.12)

Net asset value, end of period       $ 15.33   $ 13.77   $ 14.58

Market price, end of period       $ 14.93   $ 13.64   $ 14.65

TOTAL INVESTMENT RETURN3       13.44%   (0.10)%   (0.75)%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       1.13%5   1.14%   1.15%5
Expenses before fees waived and paid indirectly       1.62%5   1.62%   1.57%5
Net investment income after fees waived and paid indirectly
       and before preferred share dividends
      7.91%5   7.94%   5.29%5
Preferred share dividends       0.47%5   0.60%   0.45%5
Net investment income available to
       common shareholders
      7.44%5   7.34%   4.84%5
SUPPLEMENTAL DATA:      
Average net assets of common shareholders (000)       $ 33,320   $ 32,652   $ 31,611
Portfolio turnover       7%   20%   17%
Net assets of common shareholders,
       end of period (000)
      $ 34,780   $ 31,226   $ 32,981
Preferred shares value outstanding (000)       $ 20,225   $ 20,225   $ 20,225
Asset coverage per preferred share, end of period       $ 67,995  
$ 63,602
  $ 65,771

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

61


FINANCIAL HIGHLIGHTS


BlackRock New York Insured Municipal Income Trust (BSE)

            For the period
        Six Months Ended   October 31, 20021
        February 29, 2004   through
        (unaudited)   August 31, 2003
       
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 13.45   $ 14.332

Investment operations:
      Net investment income       0.51   0.75
      Net realized and unrealized gain (loss)       1.61   (0.75)
      Dividends to preferred shareholders from net investment income       (0.04)   (0.07)

Net increase (decrease) from investment operations       2.08   (0.07)

Dividends to common shareholders from net investment income       (0.45)   (0.67)

Capital charges with respect to issuance of:     
      Common shares         (0.03)
      Preferred shares         (0.11)

Total capital charges         (0.14)

Net asset value, end of period       $ 15.08   $ 13.45

Market price, end of period       $ 14.66   $ 13.28

TOTAL INVESTMENT RETURN3       13.90%   (7.13)%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4, 5
Expenses after fees waived and paid indirectly       0.91%   0.87%
Expenses before fees waived and paid indirectly       1.27%   1.22%
Net investment income after fees waived and paid indirectly
      and before preferred share dividends
      7.12%   6.35%
Preferred share dividends       0.49%   0.55%
Net investment income available to
      common shareholders
      6.63%   5.80%
SUPPLEMENTAL DATA:        
Average net assets of common shareholders (000)       $ 92,548   $ 90,967
Portfolio turnover       7%   80%
Net assets of common shareholders,
      end of period (000)
      $ 97,042   $ 86,431
Preferred shares value outstanding (000)       $ 56,000   $ 56,000
Asset coverage per preferred share, end of period      
$ 68,323
  $ 63,587

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       

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

 

See Notes to Financial Statements.

62


FINANCIAL HIGHLIGHTS


BlackRock New York Municipal Bond Trust (BQH)

                For the period
        Six Months Ended       April 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 14.15   $ 14.83   $ 14.332

Investment operations:
      Net investment income       0.56   1.12   0.25
      Net realized and unrealized gain (loss)       1.31   (0.71)   0.62
      Dividends and distributions to preferred shareholders:
             Net investment income
      (0.03)   (0.09)   (0.02)
            Net realized gains         (0.01)  

Net increase from investment operations       1.84   0.31   0.85

Dividends and distributions to common shareholders:
      Net investment income
      (0.46)   (0.92)   (0.23)
      Net realized gains         (0.06)  

Total dividends and distributions       (0.46)   (0.98)   (0.23)

Capital charges with respect to issuance of:
      Common shares           (0.03)
      Preferred shares         (0.01)   (0.09)

Total capital charges         (0.01)   (0.12)

Net asset value, end of period       $ 15.53   $ 14.15   $ 14.83

Market price, end of period       $ 14.52   $ 13.35   $ 14.50

TOTAL INVESTMENT RETURN3       12.37%   (1.26)%   (1.78)%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       1.12%5   1.12%   1.12%5
Expenses before fees waived and paid indirectly       1.60%5   1.60%   1.54%5
Net investment income after fees waived and paid indirectly
       and before preferred share dividends
      7.58%5   7.57%   5.24%5
Preferred share dividends       0.42%5   0.62%   0.50%5
Net investment income available to
       common shareholders
      7.16%5   6.95%   4.74%5
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000)       $ 40,447   $ 40,072   $ 38,183
Portfolio turnover       8%   7%   15%
Net assets of common shareholders,
       end of period (000)
      $ 41,956   $ 38,207   $ 40,062
Preferred shares value outstanding (000)       $ 24,200   $ 24,200   $ 24,200
Asset coverage per preferred share, end of period       $ 68,344  
$ 64,473
  $ 66,390

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

63


FINANCIAL HIGHLIGHTS


BlackRock New York Municipal Income Trust II (BFY)

                For the period
        Six Months Ended       July 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 13.36   $ 14.47   $ 14.332

Investment operations:
      Net investment income       0.52   0.98   0.02
      Net realized and unrealized gain (loss)       1.54   (0.94)   0.15
      Dividends to preferred shareholders from net investment income       (0.04)   (0.10)  

Net increase (decrease) from investment operations       2.02   (0.06)   0.17

Dividends to common shareholders from net investment income       (0.47)   (0.94)  

Capital charges with respect to issuance of:
      Common shares           (0.03)
      Preferred shares         (0.11)  

Total capital charges         (0.11)   (0.03)

Net asset value, end of period       $ 14.91   $ 13.36   $ 14.47

Market price, end of period       $ 14.47   $ 13.12   $ 15.10

TOTAL INVESTMENT RETURN3       14.07%   (6.93)%   0.67%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       1.03%5   1.00%   1.43%6
Expenses before fees waived and paid indirectly       1.28%5   1.27%   1.58%6
Net investment income after fees waived and paid indirectly
      and before preferred share dividends
      7.33%5   6.95%   1.77%6
Preferred share dividends       0.57%5   0.68%   —%6
Net investment income available to
      common shareholders
      6.76%5   6.27%   1.77%6
SUPPLEMENTAL DATA:          
Average net assets of common shareholders (000)       $ 70,483   $ 69,863   $ 64,673
Portfolio turnover       5%   40%   —%
Net assets of common shareholders,
      end of period (000)
      $ 73,563   $ 65,953   $ 70,276
Preferred shares value outstanding (000)       $ 44,650   $ 44,650   $ —
Asset coverage per preferred share, end of period       $ 66,191  
$ 61,930
  $ —

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
6   These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.  
       
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

64


FINANCIAL HIGHLIGHTS


BlackRock Virginia Municipal Bond Trust (BHV)

                For the period
        Six Months Ended       April 30, 20021
        February 29, 2004   Year Ended   through
        (unaudited)   August 31, 2003   August 31, 2002
       
 
 
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period       $ 14.46   $ 14.90   $ 14.332

Investment operations:
      Net investment income       0.54   1.09   0.27
      Net realized and unrealized gain (loss)       1.46   (0.44)   0.65
      Dividends and distributions to preferred shareholders:
             Net investment income
      (0.03)   (0.08)   (0.03)
            Net realized gains         (0.02)  

Net increase from investment operations       1.97   0.55   0.89

Dividends and distributions to common shareholders:
            Net investment income
     
(0.43)
 
(0.85)
 
(0.21)
            Net realized gains         (0.10)  

Total dividends and distributions       (0.43)   (0.95)   (0.21)

Capital charges with respect to issuance of:
      Common shares           (0.02)
      Preferred shares         (0.04)   (0.09)

Total capital charges         (0.04)   (0.11)

Net asset value, end of period       $ 16.00   $ 14.46   $ 14.90

Market price, end of period       $ 16.40   $ 14.40   $ 15.20

TOTAL INVESTMENT RETURN3       17.15%   0.94%   2.81%

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
4
Expenses after fees waived and paid indirectly       1.17%5   1.17%   1.12%5
Expenses before fees waived and paid indirectly       1.65%5   1.64%   1.54%5
Net investment income after fees waived and paid indirectly
    and before preferred share dividends
      7.28%5   7.23%   5.70%5
Preferred share dividends       0.46%5   0.53%   0.54%5
Net investment income available to
       common shareholders
      6.82%5   6.70%   5.16%5
SUPPLEMENTAL DATA:      
Average net assets of common shareholders (000)       $ 23,215   $ 22,896   $ 21,321
Portfolio turnover       14%   18%   8%
Net assets of common shareholders,
       end of period (000)
      $ 24,325   $ 21,944   $ 22,545
Preferred shares value outstanding (000)       $ 13,525   $ 13,525   $ 13,525
Asset coverage per preferred share, end of period       $ 69,964   $ 65,562 $ 66,674

1   Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.  
2   Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share.  
3   Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the trusts dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results.  
4   Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders.  
5   Annualized.  
   
The information in the above Financial Highlights represents the unaudited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.  

65


NOTES TO FINANCIAL STATEMENTS (unaudited)


Note 1. Organization
&Accounting Policies

BlackRock Insured Municipal Income Trust (“Insured Municipal”), BlackRock California Insured Municipal Income Trust (“California Insured”), BlackRock Florida Insured Municipal Income Trust (“Florida Insured”), BlackRock New York Insured Municipal Income Trust (“New York Insured”) (collectively the “Insured Trusts”), BlackRock Municipal Bond Trust (“Municipal Bond”), BlackRock California Municipal Bond Trust (“California Bond”), BlackRock Florida Municipal Bond Trust (“Florida Bond”), BlackRock Maryland Municipal Bond Trust (“Maryland Bond”), BlackRock New Jersey Municipal Bond Trust (“New Jersey Bond”), BlackRock New York Municipal Bond Trust (“New York Bond”), BlackRock Virginia Municipal Bond Trust (“Virginia Bond”) (collectively the “Bond Trusts”), BlackRock Municipal Income Trust II (“Municipal Income II”), BlackRock California Municipal Income Trust II (“California Income II”) and BlackRock New York Municipal Income Trust II (“New York Income II”) (collectively the “Income II Trusts”) (collectively the “Trusts”) are organized as Delaware statutory trusts. The Insured Trusts were organized on August 19, 2002. They had no transactions until October 19, 2002, when each of the Insured Trusts sold 8,028 common shares for $115,001 to BlackRock Funding, Inc. Investment operations for the Insured Trusts commenced on October 31, 2002. Insured Municipal, Municipal Bond and Municipal Income II are registered as diversified closed-end management investment companies under the Investment Company Act of 1940, as amended. California Insured, California Bond, California Income II, Florida Insured, Florida Bond, Maryland Bond, New Jersey Bond, New York Insured, New York Bond, New York Income II and Virginia Bond are registered as non-diversified closed-end management investment companies under the Investment Company Act of 1940, as amended.

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

Securities Valuation: Municipal securities (including commitments to purchase such securities on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust’s Board of Trustees or Board of Directors as the case may be (each, a “Board”). In determining the value of a particular security, pricing services may use certain information with respect to transactions in such securities, quotations from bond dealers, market transactions in comparable securities and various relationships between securities. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term investments may be valued at amortized cost. Investments in other investment companies are valued at net asset value. Any securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board.

Securities Transactions and Investment Income: Securities transactions are recorded on trade date. Realized and unrealized gains and losses are calculated on the identified cost basis. Each Trust also records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking-to-market” on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract.

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

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

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

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 4.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by the Trust’s Board, non-interested Trustees/Directors (“Trustees”) are required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end trusts selected by the Trustees. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.

66


The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations.

Note 2. Agreements

Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the “Advisor”), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to each Trust. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The investment management agreement covers both investment advisory and administration services.

Each Trust’s investment advisory fee paid to the Advisor is computed weekly, accrued daily and payable monthly based on an annual rate, 0.55% for the Insured Trusts and Income II Trusts and 0.65% for the Bond Trusts, of each Trust’s average weekly managed assets. “Managed assets” means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses of each Trust. With respect to the Insured Trusts the waiver, as a percentage of managed assets, is as follows: 0.20% for the first 5 years of each Trust’s operations, 0.15% in year 6, 0.10% in year 7, and 0.05% in year 8. With respect to the Bond Trusts the waiver, as a percentage of managed assets, is as follows: 0.30% for the first 5 years of each Trust’s operations, 0.25% in year 6, 0.20% in year 7, 0.15% in year 8, 0.10% in year 9 and 0.05% in year 10. With respect to the Income II Trusts the waiver, as a percentage of managed assets, is as follows: 0.15% for the first 5 years of each Trust’s operations, 0.10% in year 6 through year 7, 0.05% in year 8 through year 10.

Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for certain operational support services provided to each Trust.

Pursuant to the terms of each Trust’s custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees.

Note 3. Portfolio Securities

Purchases and sales of investment securities, other than short-term investments, for the period ended February 29, 2004, were as follows:

Trust  
Purchases
Sales
Trust
Purchases
Sales

 
 
 
 
 
Insured Municipal   $147,204,582   $140,894,975   Florida Bond   $3,061,883   $4,535,224
Municipal Bond   52,666,573   66,026,459   Maryland Bond   3,273,748   3,844,615
Municipal Income II   126,686,511   131,647,513   New Jersey Bond   4,823,537   3,805,865
California Insured     3,000,000   New York Insured   8,181,541   8,500,950
California Bond   7,507,184   10,428,814   New York Bond   5,237,378   4,894,945
California Income II   22,919,235   25,729,433   New York Income Trust II   6,040,273   7,978,215
Florida Insured   1,955,883   4,901,525   Virginia Bond  
5,123,960
  5,039,241

Details of open financial futures contracts at February 29, 2004 were as follows:

                    Value at  
    Number of         Expiration   Value at Trade   February 29,   Unrealized
Trust   Contracts   Type   Date   Date   2004   Depreciation

 
 
 
 
 
 
Short Positions:                      
Insured Municipal   1,444  
10 Yr. U.S. T-Note
June ’04
  $164,118,547   $164,435,500   $316,953
Municipal Bond   532  
10 Yr. U.S. T-Note
June ’04
  60,464,720   60,581,500   116,780
Municipal Income II   1,227  
10 Yr. U.S. T-Note
June ’04
  139,455,297   139,724,625   269,328
California Insured   308  
10 Yr. U.S. T-Note
June ’04
  35,005,970   35,073,500   67,530
California Bond   189  
10 Yr. U.S. T-Note
June ’04
  21,480,982   21,522,375   41,393
California Income II   510  
10 Yr. U.S. T-Note
June ’04
  57,964,284   58,076,250   111,966
Florida Insured   430  
10 Yr. U.S. T-Note
June ’04
  48,871,780   48,966,250   94,470
Florida Bond   148  
10 Yr. U.S. T-Note
June ’04
  16,821,150   16,853,500   32,350
Maryland Bond   91  
10 Yr. U.S. T-Note
June ’04
  10,342,213   10,362,625   20,412
New Jersey Bond   135  
10 Yr. U.S. T-Note
June ’04
  15,343,570   15,373,125   29,555
New York Insured   319  
10 Yr. U.S. T-Note
June ’04
  36,256,181   36,326,125   69,944
New York Bond   122  
10 Yr. U.S. T-Note
June ’04
  13,866,030   13,892,750   26,720
New York Income II   216  
10 Yr. U.S. T-Note
June ’04
  24,549,549   24,597,000   47,451
Virginia Bond   82  
10 Yr. U.S. T-Note
June ’04
  9,319,866  
9,337,750
  17,884

67


Note 4. Distributions to Shareholders

The tax character of distributions paid during the period ended February 29, 2004 and the year ended August 31, 2003 were as follows:     

    Period ended February 29, 2004        Year ended August 31, 2003
   
 
            Long-term               Long-term  
  Tax-exempt   Ordinary   Capital   Total   Tax-exempt   Ordinary   Capital   Total
Trust   Income   Income   Gain   Distributions   Income   Income   Gain   Distributions

 
 
 
 
 
 
 
 
Insured Municipal   $13,281,307   $ —   $ —   $13,281,307   $20,038,910   $ —   $ —   $20,038,910
Municipal Bond   5,651,393       5,651,393   11,285,917   597,573     11,883,490
Municipal Income II   12,389,955       12,389,955   25,082,459       25,082,459
California Insured   2,556,393   73,747     2,630,140   3,860,751       3,860,751
California Bond   1,707,290   232,979   9,007   1,949,276   3,437,724   314,651     3,752,375
California Income II   4,210,362       4,210,362   8,464,717       8,464,717
Florida Insured   4,223,492   718,777     4,942,269   6,444,887       6,444,887
Florida Bond   1,676,978   80,865     1,757,843   3,332,440   211,968     3,544,408
Maryland Bond   942,050       942,050   1,889,448   83,572     1,973,020
New Jersey Bond   1,148,434   121,410     1,269,844   2,305,459   159,954     2,465,413
New York Insured   3,121,245       3,121,245   4,747,699       4,747,699
New York Bond   1,333,373       1,333,373   2,725,833   176,602     2,902,435
New York Income II   2,530,301       2,530,301   5,138,475       5,138,475
Virginia Bond   712,779       712,779   1,410,518   174,265  
  1,584,783

As of February 29, 2004, the components of distributable earnings on a tax basis were as follows:

    Undistributed   Undistributed  
    Tax-exempt   Long-term   Unrealized Net
Trust   Income   Gain (Loss)   Appreciation

 
 
 
Insured Municipal   $2,126,387   $ —   $36,165,844
Municipal Bond   2,519,763     13,308,313
Municipal Income II   2,729,020     22,963,937
California Insured   432,505     3,390,461
California Bond   781,590     3,043,857
California Income II       5,488,860
Florida Insured   475,782     7,479,738
Florida Bond   672,272     4,873,699
Maryland Bond   450,333     2,737,028
New Jersey Bond   444,940   25,128   2,207,497
New York Insured   248,780     6,122,711
New York Bond   495,691     3,561,052
New York Income II       4,771,218
Virginia Bond   408,080  
  2,532,385

Note 5. Capital

There are an unlimited number of $0.001 par value common shares of beneficial interest authorized for each Trust. Each Trust may classify or reclassify any unissued common shares into one or more series of Auction Market Preferred Shares (“preferred shares”). At February 29, 2004, the shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:

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


 
 

 
Insured Municipal 26,149,334   8,028   Florida Municipal 3,309,483   7,679
Municipal Bond 10,123,055   7,679   Maryland Municipal 2,014,422   7,679
Municipal Income II 22,781,072   8,027   New Jersey Municipal 2,269,366   7,679
California Insured 5,267,067   8,028   New York Insured 6,436,539   8,028
California Municipal 3,351,150   7,679   New York Bond 2,700,991   7,679
California Municipal II 7,981,621   8,027   New York Income II 4,935,268   8,027
Florida Insured 8,718,823   8,028   Virginia Bond 1,519,916   7,679

68


During the period ended February 29, 2004, Insured Municipal, Municipal Income II, California Insured, California Income II, Maryland Bond, New Jersey Bond, New York Insured and Virginia Bond issued additional shares under their dividend reinvestment plans of 23,876, 7,680, 3,042, 7,208, 301, 1,848, 12,431 and 2,875, respectively. Transactions in common shares of beneficial interest for the year ended August 31, 2003, were as follows:

    Shares from    
   
   
    Initial          
    Public Offering   Underwriters’ Exercising   Reinvestment   Net Increase in
Trust   October 31, 2002   the Over-allotment Option   of Dividends   Shares Outstanding

 
 
 
 
Insured Municipal   24,008,028   2,000,000   117,430   26,125,458
Municipal Bond       12,096   12,096
Municipal Income II     300,000   15,364   315,364
California Insured   5,008,028   250,000   5,997   5,264,025
California Bond       840   840
California Income II     150,000   16,385   166,385
Florida Insured   8,008,028   700,000   10,795   8,718,823
Florida Bond       1,232   1,232
Maryland Bond       1,240   1,240
New Jersey Bond       5,212   5,212
New York Insured   6,008,028   400,000   16,080   6,424,108
New York Bond        
New York Income II     75,000   2,240   77,240
Virginia Bond       4,017   4,017

Offering costs incurred in connection with the Trusts’ offering of common shares have been charged against the proceeds from the initial common share offering of the common shares were as follows:

Trust   Offering Costs

 
Insured Municipal   $765,000
California Insured   142,500
Florida Insured   246,000
New York Insured   177,000

As of February 29, 2004, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.

Trust Series   Shares   Trust   Series   Shares


 
 
 
 
Insured Municipal M7   3,053   California Income II   T7   1,439
  R7   3,053       R7   1,439
  F7   3,053   Florida Insured   M7   3,040
Municipal Bond T7   1,810   Florida Bond   W7   1,191
  R7   1,810   Maryland Bond   R7   720
Municipal Income II M7   2,055   New Jersey Bond   M7   809
  T7   2,056   New York Insured   R7   2,240
  W7   2,055   New York Bond   T7   968
  R7   2,056   New York Income II   W7   1,786
California Insured F7   1,860   Virginia Bond   R7   541
California Bond F7   1,199        

69


Underwriting discounts and offering costs incurred in connection with the preferred share offerings for the period ended February 29, 2004, and the year ended August 31, 2003 have been charged to paid-in capital in excess of par of the common shares as follows.

    Underwriting   Offering       Underwriting   Offering
Trust   Discount   Cost   Trust   Discount   Cost

 
 
 
 
 
Insured Municipal   2,289,750   369,482   Florida Bond     28,492
Municipal Bond     (128,162)   Maryland Bond     50,675
Municipal Income II   2,055,500   239,168   New Jersey Bond     48,427
California Insured   465,000   144,518   New York Insured   560,000   151,970
California Bond     21,849   New York Bond     37,459
California Income II   719,500   129,975   New York Income II   446,500   120,782
Florida Insured   760,000   184,848   Virginia Bond     58,033

Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The dividend ranges on the preferred shares for each of the Trusts for the period ended February 29, 2004, were as follows:

Trust   Low   High   Trust   Low   High

 
 
 
 
 
Insured Municipal   0.63%   1.30%   Florida Bond   0.70%   1.40%
Municipal Bond   0.45   1.35   Maryland Bond   0.60   1.30
Municipal Income II   0.45   1.40   New Jersey Bond   0.40   2.10
California Insured   0.54   1.01   New York Insured   0.45   1.20
California Bond   0.40   1.93   New York Bond   0.40   0.90
California Income II   0.50   1.40   New York Income II   0.80   1.10
Florida Insured   0.75   1.97   Virginia Bond   0.40   1.03

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 Declaration of Trust, are not satisfied.

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

70


Note 6. Dividends

Subsequent to February 29, 2004, the Board of each Trust declared dividends from undistributed earnings per common share payable April 1, 2004, to shareholders of record on March 15, 2004. The per share common dividends declared were as follows:

    Common Dividend       Common Dividend
Trust   Per Share   Trust   Per Share

 
 
 
Insured Municipal  
$0.078125
  Florida Bond  
0.077808
Municipal Bond  
0.086375
  Maryland Bond  
0.071350
Municipal Income II  
0.083750
  New Jersey Bond  
0.078582
California Insured  
0.075000
  New York Insured  
0.075000
California Bond  
0.079656
  New York Bond  
0.077099
California Income II  
0.081250
  New York Income II  
0.078750
Florida Insured  
0.075000
 
Virgina Bond
0.072428

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

        Dividends           Dividends
Trust   Series   Declared   Trust   Series   Declared

 
 
 
 
 
Insured Municipal   M7   $66,647   California Income II   T7   $28,305
    R7   47,525       R7   22,434
    F7   66,586   Florida Insured   M7   52,622
Municipal Bond   T7   33,612   Florida Bond   W7   17,496
    R7   30,535   Maryland Bond   R7   10,109
Municipal Income II   M7   42,497   New Jersey Bond   M7   14,950
    T7   41,449   New York Insured   R7   35,034
    W7   34,503   New York Bond   T7   19,089
    R7   31,169   New York Income II   W7   24,915
California Insured   F7   38,242   Virginia Bond   R7   4,317
California Bond   F7   24,136        

71



DIVIDEND REINVESTMENT PLANS


Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders are automatically enrolled to have all
distributions of dividends and capital gains reinvested by EquiServe Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent.

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

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

The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at 150 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.

ADDITIONAL INFORMATION (unaudited)


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

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

72


BlackRock Closed-End Funds


Trustees
Ralph L. Schlosstein, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
Robert S. Kapito
James Clayburn La Force, Jr.
Walter F. Mondale

Officers
Robert S. Kapito, President
Henry Gabbay, Treasurer
Anne Ackerley, Vice President
Kevin M. Klingert, Vice President
Richard M. Shea, Vice President/Tax
James Kong, Assistant Treasurer
Vincent B. Tritto, Secretary
Brian P. Kindelan, Assistant Secretary

Investment Advisor
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

Sub-Advisor
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022

Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110

Transfer Agent
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021
(800) 699-1BFM

Auction Agent1
Bank of New York
100 Church Street, 8th Floor
New York, NY 10286

Auction Agent2
Deutsche Bank Trust Company Americas
60 Wall Street, 27th Floor
New York, NY 10005

Independent Accountants
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036

Legal Counsel – Independent Trustees
Debevoise & Plimpton, LLP
919 Third Avenue
New York, NY 10022

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.

BlackRock Closed-End Funds
c/o BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM


1     For the Insured Trusts and Bond Trusts.

2     For the Income II Trusts.

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 227-7BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor’s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1236. These policies and procedures are also available on the website of the Securities and Exchange Commission at http://www.sec.gov.


 

 

 

 

 

 

 

 

 

 

 

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.

CEF-SEMI-1

 

ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual reports.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semi-annual reports.

ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable for reports for periods ending on or before July 9, 2004.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable for semi-annual reports.

ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable for reports covering periods ending on or before June 15, 2004.

ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.

ITEM 10. CONTROLS AND PROCEDURES.

(a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the Registrant's disclosure controls and procedures are effective, as of a date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

ITEM 11. EXHIBITS.

(a)(1) Not applicable.

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

(a)(3) Not applicable.

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

2


 

SIGNATURES

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

(Registrant)    BlackRock Insured Municipal Income Trust

By:   /s/ Henry Gabbay
      ----------------------------------------------------------------------------------------------------------------
Name: Henry Gabbay
Title: Treasurer
Date: May 6, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:   /s/ Robert S. Kapito
      ----------------------------------------------------------------------------------------------------------------
Name: Robert S. Kapito
Title: Principal Executive Officer
Date: May 6, 2004

By:   /s/ Henry Gabbay
      ----------------------------------------------------------------------------------------------------------------
Name: Henry Gabbay
Title: Principal Financial Officer
Date: May 6, 2004


3