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:_____ 811-06355 ________________________

____BlackRock Municipal Target Term Trust, Inc.____
(Exact name of registrant as specified in charter)


100 Bellevue Parkway, Wilmington, DE 
19809 



(Address of principal executive offices) 
(Zip code) 

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

(Name and address of agent for service)

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

Date of fiscal year end:___December 31, 2006__________________________________

Date of reporting period:__ June 30, 2006_________________________________


Item 1. Reports to Stockholders.

FIXED INCOME           LIQUIDITY           EQUITIES           ALTERNATIVES           BLACKROCK SOLUTIONS


BlackRock
Closed-End Funds
Semi-Annual Report

JUNE 30, 2006 (UNAUDITED)


 

BlackRock Insured Municipal 2008 Term Trust (BRM)

BlackRock Insured Municipal Term Trust (BMT)

BlackRock Municipal 2018 Term Trust (BPK)

BlackRock Municipal 2020 Term Trust (BKK)

BlackRock Municipal Target Term Trust (BMN)

BlackRock Strategic Municipal Trust (BSD)

BlackRock California Insured Municipal 2008 Term Trust (BFC)

BlackRock California Municipal 2018 Term Trust (BJZ)

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

BlackRock Florida Municipal 2020 Term Trust (BFO)

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

BlackRock New York Municipal 2018 Term Trust (BLH)

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

BlackRock Long-Term Municipal Advantage Trust (BTA)


 

 

 

 

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


TABLE OF CONTENTS 
   
Letter to Shareholders    1 
     
Trusts’ Summaries    2 
     
Portfolios of Investments    16 
     
Financial Statements     
     
     Statements of Assets and Liabilities    61 
     
     Statements of Operations    64 
     
     Statements of Changes in Net Assets    67 
     
Financial Highlights    72 
     
Notes to Financial Statements    86 
     
Board Review of Investment Management Agreements    93 
     
Dividend Reinvestment Plans    98 
     
Additional Information    98 

 

 

 


Privacy Principles of the Trusts

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

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

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


LETTER TO SHAREHOLDERS

June 30, 2006

Dear Shareholder:

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

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

     The following table shows the Trusts’ current yields, tax-equivalent yields, closing market prices per share and net asset values (“NAV”) per share as of June 30, 2006.

 
   
Tax-
Closing 
   
Current  
Equivalent
Market
Trust (Ticker)   
Yield1
     
Yield1
     
Price 
     
NAV 
   BlackRock Insured Municipal 2008 Term Trust (BRM)    5.24 %    8.07 %   
$15.16  
 
$15.45   
   BlackRock Insured Municipal Term Trust (BMT)    3.89     5.98    
  9.39 
 
10.16 
   BlackRock Municipal 2018 Term Trust (BPK)    5.79     8.91    
15.64 
 
15.58 
   BlackRock Municipal 2020 Term Trust (BKK)    5.40     8.30    
14.73 
 
15.15 
   BlackRock Municipal Target Term Trust (BMN)    3.76     5.79    
  9.93 
 
10.11 
   BlackRock Strategic Municipal Trust (BSD)    6.43     9.90    
17.09 
 
15.29 
   BlackRock California Insured Municipal 2008 Term Trust (BFC)    5.07     7.80    
15.24 
 
15.37 
   BlackRock California Municipal 2018 Term Trust (BJZ)    4.84     7.44    
15.20 
 
14.97 
   BlackRock Florida Insured Municipal 2008 Term Trust (BRF)    3.22     4.96    
13.96 
 
14.69 
   BlackRock Florida Municipal 2020 Term Trust (BFO)    5.10     7.85    
13.09 
 
14.73 
   BlackRock New York Insured Municipal 2008 Term Trust (BLN)    3.71     5.70    
14.76 
 
15.33 
   BlackRock New York Municipal 2018 Term Trust (BLH)    4.81     7.41    
15.27 
 
16.01 
   BlackRock Pennsylvania Strategic Municipal Trust (BPS)    5.35     8.22    
16.95 
 
15.00 
   BlackRock Long-Term Municipal Advantage Trust (BTA) 
 
6.37
 
 
9.79
 
 
12.96 
 
13.58 
1Yields are based on closing market price. Tax-equivalent yield assumes the maximum Federal tax rate of 35%. Past performance does not guarantee future results. 

     BlackRock, Inc. (“BlackRock”), a world leader in asset management, has a proven commitment to the municipal bond market. As of June 30, 2006, BlackRock managed over $25 billion in municipal bonds, including seven open-end and 38 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., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries 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    Ralph L. Schlosstein 
Chief Executive Officer    President 
BlackRock Advisors, Inc.    BlackRock Advisors, Inc. 

1


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Insured Municipal 2008 Term Trust (BRM)

Trust Information

 
Symbol on New York Stock Exchange:   
BRM
Initial Offering Date:    September 18, 1992
Termination Date (on or about):    December 31, 2008
Closing Market Price as of 6/30/06:    $15.16  
Net Asset Value as of 6/30/06:    $15.45  
Yield on Closing Market Price as of 6/30/06 ($15.16):1    5.24 % 
Current Monthly Distribution per Common Share:2    $0.06625  
Current Annualized Distribution per Common Share:2    $0.79500  
Leverage as of 6/30/06:3    39 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$15.16 
$15.30 
(0.92
)% 
$15.72 
$15.02 
NAV 
$15.45 
$15.89 
(2.77
)% 
$15.92 
$15.44 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
City, County & State    29 %    31 % 
Power    25     24  
Education    11     10  
Industrial & Pollution Control    9     9  
Lease Revenue    7     7  
Transportation    7     6  
Tax Revenue    6     6  
Hospital    3     4  
Water & Sewer    3     3  

As of June 30, 2006, and December 31, 2005, all long-term investments had ratings of AAA/Aaa by Standard & Poor’s (“S&P”), Moody’s Investors Service (“Moody’s”) or Fitch’s Ratings (“Fitch”).

2


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Insured Municipal Term Trust (BMT)

Trust Information

 
Symbol on New York Stock Exchange:   
BMT
Initial Offering Date:    February 20, 1992
Termination Date (on or about):    December 31, 2010
Closing Market Price as of 6/30/06:    $9.39  
Net Asset Value as of 6/30/06:    $10.16  
Yield on Closing Market Price as of 6/30/06 ($9.39):1    3.89 % 
Current Monthly Distribution per Common Share:2    $0.030417  
Current Annualized Distribution per Common Share:2    $0.365004  
Leverage as of 6/30/06:3    39 % 

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

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

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

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

             
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$  9.39 
$10.36 
(9.36
)% 
$10.83 
$  9.33 
NAV 
$10.16 
$10.51 
(3.33
)% 
$10.53 
$10.14 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
City, County & State    32 %    32 % 
Education    17     17  
Water & Sewer    15     15  
Power    13     13  
Hospital    8     8  
Transportation    7     7  
Lease Revenue    6     6  
Tax Revenue    2     2  

Credit Breakdown4

 
Credit Rating    June 30, 2006  
December 31, 2005
AAA/Aaa    99 %    100 % 
A    1      

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

3


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Municipal 2018 Term Trust (BPK)

Trust Information

 
Symbol on New York Stock Exchange:   
BPK
Initial Offering Date:    October 26, 2001
Termination Date (on or about):    December 31, 2018
Closing Market Price as of 6/30/06:    $15.64  
Net Asset Value as of 6/30/06:    $15.58  
Yield on Closing Market Price as of 6/30/06 ($15.64):1    5.79 % 
Current Monthly Distribution per Common Share:2    $0.0755  
Current Annualized Distribution per Common Share:2    $0.9060  
Leverage as of 6/30/06:3    36 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$15.64 
$15.71 
(0.45 )% 
$16.20 
$15.36 
NAV 
$15.58 
$15.71 
(0.83 )% 
$15.82 
$15.54 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
Hospital    23 %    24 % 
Industrial & Pollution Control    23     22  
City, County & State    21     22  
Housing    11     12  
Education    5     5  
Transportation    5     5  
Tax Revenue    4     4  
Lease Revenue    3     3  
Power    3     3  
Tobacco    2      

Credit Breakdown4

 
Credit Rating    June 30, 2006   December 31, 2005
AAA/Aaa    22 %    21 % 
AA/Aa    10     5  
A    22     25  
BBB/Baa    29     28  
BB/Ba    1     5  
B    5     2  
Not Rated5    11     14  

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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2006, and December 31, 2005, the market value of these securities was $5,609,740 representing 1.5% and $5,795,231 representing 1.6%, respectively, of the Trust’s long-term investments.

4


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Municipal 2020 Term Trust (BKK)

Trust Information

 
Symbol on New York Stock Exchange:   
BKK
Initial Offering Date:    September 30, 2003
Termination Date (on or about):    December 31, 2020
Closing Market Price as of 6/30/06:    $14.73  
Net Asset Value as of 6/30/06:    $15.15  
Yield on Closing Market Price as of 6/30/06 ($14.73):1    5.40 % 
Current Monthly Distribution per Common Share:2    $0.06625  
Current Annualized Distribution per Common Share:2    $0.79500  
Leverage as of 6/30/06:3    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. Past performance does not guarantee future results.

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$14.73 
$14.00 
5.21 % 
$15.02 
$14.00 
NAV 
$15.15 
$15.28 
(0.85 )% 
$15.49 
$15.09 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
City, County & State    24 %    29 % 
Hospitals    18     17  
Industrial & Pollution Control    18     16  
Tobacco    11     5  
Housing    8     8  
Education    7     6  
Tax Revenue    5     4  
Transportation    5     6  
Power    4     4  
Lease Revenue        5  

Credit Breakdown4

 
Credit Rating    June 30, 2006   December 31, 2005
AAA/Aaa    20 %    19 % 
AA/Aa    7     5  
A    16     15  
BBB/Baa    37     41  
BB/Ba    1     1  
B    5     4  
Not Rated    14     15  

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

5


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Municipal Target Term Trust (BMN)

Trust Information

 
Symbol on New York Stock Exchange:   
BMN
Initial Offering Date:    September 27, 1991
Termination Date (on or about):    December 31, 2006
Closing Market Price as of 6/30/06:    $9.93  
Net Asset Value as of 6/30/06:    $10.11  
Yield on Closing Market Price as of 6/30/06 ($9.93):1    3.76 % 
Current Monthly Distribution per Common Share:2    $0.031125  
Current Annualized Distribution per Common Share:2    $0.373500  

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$  9.93 
$  9.91 
0.20 % 
$10.01 
$  9.91 
NAV 
$10.11 
$10.16 
(0.49 )% 
$10.17 
$10.09 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
City, County & State    29 %    40 % 
Education    16     11  
Power    16     11  
Lease Revenue    11     8  
Housing    9     4  
Transportation    8     12  
Water & Sewer    5     6  
Tax Revenue    4     4  
Hospital    2     3  
Industrial & Pollution Control        1  

As of June 30, 2006 and December 31, 2005, all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch.

6


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Strategic Municipal Trust (BSD)

Trust Information

 
Symbol on New York Stock Exchange:   
BSD
Initial Offering Date:    August 25, 1999
Closing Market Price as of 6/30/06:    $17.09  
Net Asset Value as of 6/30/06:    $15.29  
Yield on Closing Market Price as of 6/30/06 ($17.09):1    6.43 % 
Current Monthly Distribution per Common Share:2    $0.091625  
Current Annualized Distribution per Common Share:2    $1.099500  
Leverage as of 6/30/06:3    36 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$17.09 
$17.14 
(0.29 )% 
$17.95 
$16.05 
NAV 
$15.29 
$15.68 
(2.49 )% 
$15.83 
$15.24 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
City, County & State    22 %    15 % 
Industrial & Pollution Control    20     23  
Hospital    16     14  
Education    10     9  
Power    9     10  
Tax Revenue    8     5  
Housing    7     7  
Transportation    7     6  
Water & Sewer    1     5  
Lease Revenue        5  
Other        1  

Credit Breakdown4

 
Credit Rating    June 30, 2006   December 31, 2005
AAA/Aaa    50 %    48 % 
AA/Aa    16     15  
A    6     11  
BBB/Baa    12     12  
BB/Ba    4     4  
B    5     5  
Not Rated5    7     5  

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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2006 and December 31, 2005, the market value of these securities was $972,350 representing 0.6% and $998,610 representing 0.6%, respectively, of the Trust’s long-term investments.

7


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock California Insured Municipal 2008 Term Trust (BFC)

Trust Information

 
Symbol on New York Stock Exchange:   
BFC
Initial Offering Date:    September 18, 1992
Termination Date (on or about):    December 31, 2008
Closing Market Price as of 6/30/06:    $15.24  
Net Asset Value as of 6/30/06:    $15.37  
Yield on Closing Market Price as of 6/30/06 ($15.24):1    5.07 % 
Current Monthly Distribution per Common Share:2    $0.064375  
Current Annualized Distribution per Common Share:2    $0.772500  
Leverage as of 6/30/06:3    40 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$15.24 
$15.31 
(0.46 )% 
$15.84 
$15.06 
NAV 
$15.37 
$15.86 
(3.09 )% 
$15.92 
$15.36 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
City, County & State    21 %    21 % 
Lease Revenue    20     20  
Power    19     19  
Education    12     12  
Tax Revenue    10     8  
Water & Sewer    10     10  
Resource Recovery    5     5  
Transportation    2     4  
Hospital    1     1  

As of June 30, 2006, and December 31, 2005, all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch.

8


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock California Municipal 2018 Term Trust (BJZ)

Trust Information

 
Symbol on New York Stock Exchange:    BJZ
Initial Offering Date:    October 26, 2001
Termination Date (on or about):    December 31, 2018
Closing Market Price as of 6/30/06:    $15.20  
Net Asset Value as of 6/30/06:    $14.97  
Yield on Closing Market Price as of 6/30/06 ($15.20):1    4.84 % 
Current Monthly Distribution per Common Share:2    $0.06125  
Current Annualized Distribution per Common Share:2    $0.73500  
Leverage as of 6/30/06:3    37 % 

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

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

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

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

             
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$15.20 
$15.19 
0.07 % 
$15.59 
$14.93 
NAV 
$14.97 
$15.21 
(1.58 )% 
$15.34 
$14.94 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
City, County & State    20 %    21 % 
Transportation    19     19  
Lease Revenue    15     15  
Hospital    14     14  
Industrial & Pollution Control    9     7  
Education    7     8  
Housing    7     7  
Power    5     5  
Water & Sewer    4     4  

Credit Breakdown4

 
Credit Rating    June 30, 2006   December 31, 2005
AAA/Aaa    36 %    37 % 
AA/Aa    4     4  
A    34     35  
BBB/Baa    23     21  
Not Rated    3     3  

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

9


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

Trust Information

 
Symbol on New York Stock Exchange:   
BRF
Initial Offering Date:    September 18, 1992
Termination Date (on or about):    December 31, 2008
Closing Market Price as of 6/30/06:    $13.96  
Net Asset Value as of 6/30/06:    $14.69  
Yield on Closing Market Price as of 6/30/06 ($13.96):1    3.22 % 
Current Monthly Distribution per Common Share:2    $0.0375  
Current Annualized Distribution per Common Share:2    $0.4500  
Leverage as of 6/30/06:3    40 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$13.96 
$15.11 
(7.61 )% 
$15.50 
$13.78 
NAV 
$14.69 
$15.04 
(2.33 )% 
$15.07 
$14.68 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
Tax Revenue    36 %    36 % 
Power    15     16  
Lease Revenue    13     13  
Education    12     12  
City, County & State    10     10  
Transportation    5     5  
Resource Recovery    4     4  
Water & Sewer    4     4  
Other    1      

As of June 30, 2006, and December 31, 2005, all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch.

10


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Florida Municipal 2020 Term Trust (BFO)

Trust Information

 
Symbol on New York Stock Exchange:   
BFO
Initial Offering Date:    September 30, 2003
Termination Date (on or about):    December 31, 2020
Closing Market Price as of 6/30/06:    $13.09  
Net Asset Value as of 6/30/06:    $14.73  
Yield on Closing Market Price as of 6/30/06 ($13.09):1    5.10 % 
Current Monthly Distribution per Common Share:2    $0.055625  
Current Annualized Distribution per Common Share:2    $0.667500  
Leverage as of 6/30/06:3    37 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$13.09 
$13.35 
(1.95 )% 
$14.25 
$13.00 
NAV 
$14.73 
$14.90 
(1.14 )% 
$15.07 
$14.69 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
City, County & State    26 %    26 % 
Water & Sewer    18     18  
Tobacco    11     10  
Education    10     10  
Power    10     10  
Tax Revenue    7     7  
Hospitals    6     6  
Industrial & Pollution Control    5     5  
Lease Revenue    4     5  
Transportation    3     3  

Credit Breakdown4

 
Credit Rating    June 30, 2006   December 31, 2005
AAA/Aaa    59 %    58 % 
AA/Aa    1     1  
A    4     4  
BBB/Baa    18     17  
BB/Ba    2     2  
Not Rated5    16     18  

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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2006, and December 31, 2005, the market value of these securities was $2,089,420 representing 1.8% and $2,124,960 representing 1.7%, respectively, of the Trust’s long-term investments.

11


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

Trust Information

 
Symbol on New York Stock Exchange:   
BLN
Initial Offering Date:    September 18, 1992
Termination Date (on or about):    December 31, 2008
Closing Market Price as of 6/30/06:    $14.76  
Net Asset Value as of 6/30/06:    $15.33  
Yield on Closing Market Price as of 6/30/06 ($14.76):1    3.71 % 
Current Monthly Distribution per Common Share:2    $0.0456  
Current Annualized Distribution per Common Share:2    $0.5472  
Leverage as of 06/30/06:3    39 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$14.76 
$15.30 
(3.53 )% 
$15.53 
$14.61 
NAV 
$15.33 
$15.73 
(2.54 )% 
$15.77 
$15.31 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
Transportation    26 %    26 % 
Education    20     20  
City, County & State    17     17  
Water & Sewer    12     11  
Hospital    8     8  
Power    6     6  
Tax Revenue    6     6  
Lease Revenue    3     3  
Housing    2     3  

As of June 30, 2006, and December 31, 2005, all long-term investments had ratings of AAA/Aaa by S&P, Moody’s or Fitch.

12


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock New York Municipal 2018 Term Trust (BLH)

Trust Information

 
Symbol on New York Stock Exchange:   
BLH
Initial Offering Date:    October 26, 2001
Termination Date (on or about):    December 31, 2018
Closing Market Price as of 6/30/06:    $15.27  
Net Asset Value as of 6/30/06:    $16.01  
Yield on Closing Market Price as of 6/30/06 ($15.27):1    4.81 % 
Current Monthly Distribution per Common Share:2    $0.06125  
Current Annualized Distribution per Common Share:2    $0.73500  
Leverage as of 6/30/06:3    35 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$15.27 
$15.15  0.79 % 
$15.85 
$15.10 
NAV 
$16.01 
$16.11  (0.62 )% 
$16.32 
$15.98 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
Education    22 %    22 % 
Hospital    17     17  
City, County & State    11     11  
Tobacco    11     10  
Lease Revenue    10     10  
Transportation    10     11  
Industrial & Pollution Control    7     7  
Tax Revenue    6     6  
Housing    5     5  
Power    1     1  

Credit Breakdown4

 
Credit Rating    June 30, 2006   December 31, 2005
AAA/Aaa    39 %    35 % 
AA/Aa    37     26  
A    10     21  
BBB/Baa    10     13  
B    1     1  
CCC/Caa    3     3  
Not Rated        1  

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

13


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

Trust Information

 
Symbol on American Stock Exchange:    BPS
Initial Offering Date:    August 25, 1999
Closing Market Price as of 6/30/06:    $16.95  
Net Asset Value as of 6/30/06:    $15.00  
Yield on Closing Market Price as of 6/30/06 ($16.95):1    5.35 % 
Current Monthly Distribution per Common Share:2    $0.0755  
Current Annualized Distribution per Common Share:2    $0.9060  
Leverage as of 6/30/06:3    37 % 

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

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

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

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

           
 
6/30/06 
12/31/05 
Change
High 
Low 
Market Price 
$16.95 
$15.85 
6.94 % 
$16.95 
$15.29 
NAV 
$15.00 
$15.27 
(1.77 )% 
$15.30 
$14.98 

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

Sector Breakdown

 
Sector    June 30, 2006   December 31, 2005
Education    34 %    24 % 
Transportation    17     23  
Hospital    13     15  
Water & Sewer    13     9  
Housing    10     12  
Industrial & Pollution Control    5     6  
Lease Revenue    4     6  
Other    2      
Power    2     3  
City, County & State        2  

Credit Breakdown4

 
Credit Rating    June 30, 2006   December 31, 2005
AAA/Aaa    60 %    61 % 
AA/Aa    13     7  
A    18     21  
BBB/Baa    7     8  
Not Rated5    2     3  

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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2006, and December 31, 2005, the market value of these securities was $972,350 representing 2.3% and $998,610 representing 2.7%, respectively, of the Trust’s long-term investments.

14


TRUST SUMMARIES (unaudited)
JUNE 30, 2006

BlackRock Long-Term Municipal Advantage Trust (BTA)

Trust Information

 
Symbol on New York Stock Exchange:   
BTA
Initial Offering Date:    February 28, 2006
Closing Market Price as of 6/30/06:    $12.96  
Net Asset Value as of 6/30/06:    $13.58  
Yield on Closing Market Price as of 6/30/06 ($12.96):1    6.37 % 
Current Monthly Distribution per Common Share:2    $0.06875  
Current Annualized Distribution per Common Share:2    $0.82500  

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

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

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

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

       
 
6/30/06 
High 
Low 
Market Price 
$12.96 
$15.02 
$12.92 
NAV 
$13.58 
$14.35 
$13.48 

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

Sector Breakdown

 
Sector    June 30, 2006
Tobacco    26 % 
Industrial & Pollution Control    19  
Education    15  
Hospital    15  
City, County & State    14  
Transportation    9  
Housing    2  

Credit Breakdown4

 
Credit Rating    June 30, 2006
AAA/Aaa    4 % 
AA/Aa     
A    14  
BBB/Baa    64  
B    5  
Not Rated5    13  

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

5 The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2006, the market value of these securities was $6,863,780 representing 3.8% of the Trust’s long-term investments.

15


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Insured Municipal 2008 Term Trust (BRM)

 
Principal 
           
 
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
  LONG-TERM INVESTMENTS—129.5%         
 
  Alabama—2.2%         
AAA 
 
$      2,410 
  Auburn Univ. RB, 5.00%, 4/01/09, AMBAC    No Opt. Call    $      2,480,540 
AAA 
 
6,555 
  Birmingham Jefferson Civic Ctr. Auth. ST, Ser. A, 4.25%, 1/01/09, FSA    No Opt. Call    6,615,044 
 
          9,095,584 
 
  Arizona—2.1%         
AAA 
 
4,000 
  Chandler GO, Zero Coupon, 7/01/08, FGIC    No Opt. Call    3,690,240 
AAA 
 
1,000 
  Phoenix Str. & Hwy. RB, 4.25%, 7/01/09, FGIC    No Opt. Call    1,010,330 
AAA 
 
4,200 
  Pima Cnty. Str. & Hwy. RB, 4.125%, 7/01/09, FGIC    07/08 @ 101    4,228,728 
 
          8,929,298 
 
  California—2.3%         
 
  Dept. of Wtr. Res. Pwr. Sply. RB,         
AAA 
 
5,000 
     Ser. A, 3.125%, 5/01/08, FSA    No Opt. Call    4,915,600 
AAA 
 
5,000 
     Ser. A, 3.375%, 5/01/09, MBIA    No Opt. Call    4,904,950 
 
          9,820,550 
 
  Colorado—2.5%         
AAA 
 
2,000 
  E-470 Pub. Hwy. Auth. RB, Ser. B, Zero Coupon, 9/01/11, MBIA    No Opt. Call    1,603,860 
AAA 
 
1,000 
  El Paso Cnty. COP, Detention Fac. Proj., Ser. B, 3.20%, 12/01/08, AMBAC    No Opt. Call    978,470 
AAA 
 
6,965 
  Regl. Transp. Dist. COP, Transp. Vehicles Proj., Ser. A, 5.00%, 6/01/08, MBIA    06/07 @ 101    7,109,942 
AAA 
 
1,000 
  Thornton COP, 3.25%, 12/01/08, AMBAC    No Opt. Call    979,280 
 
          10,671,552 
 
  Delaware—0.2%         
AAA 
 
650 
  Delaware River & Bay Auth. RB, 3.25%, 1/01/09, MBIA    No Opt. Call    635,908 
 
  District of Columbia—3.1%         
 
  Dist. of Columbia GO,         
AAA 
 
1953
     Ser. B, 5.50%, 6/01/09, FSA    ETM    203,531 
AAA 
 
2,605 
     Ser. B, 5.50%, 6/01/09, FSA    No Opt. Call    2,716,781 
AAA 
 
10,000 
     Ser. B-1, 5.50%, 6/01/08, AMBAC    No Opt. Call    10,295,800 
 
          13,216,112 
 
  Florida—4.8%         
AAA 
 
2,280 
  Broward Cnty. Sch. Brd. COP, Ser. B, 4.25%, 7/01/09, FSA    No Opt. Call    2,297,807 
AAA 
 
13,890 
  Dept. of Env. Protection Presvtn. RB, Ser. B, 5.00%, 7/01/09, MBIA    No Opt. Call    14,328,507 
AAA 
 
1,300 
  Palm Beach RB, Restoration Proj., Ser. A, 5.00%, 1/01/09, FSA    No Opt. Call    1,334,489 
AAA 
 
2,080 
  Tampa Wtr. & Swr. RB, 5.50%, 10/01/08, FSA    No Opt. Call    2,153,174 
 
          20,113,977 
 
  Georgia—6.0%         
AAA 
 
5,000 
  Georgia GO, Ser. E, 5.25%, 2/01/10    No Opt. Call    5,239,750 
AAA 
 
20,000 
  Monroe Cnty. PCRB, Vogtle Power Plant Co. Proj., 4.20%, 1/01/12, AMBAC    No Opt. Call    20,040,200 
 
          25,279,950 
 
  Hawaii—5.0%         
 
  Hawaii GO,         
AAA 
 
6,510 
     Ser. CY, 4.00%, 2/01/09, FSA    No Opt. Call    6,528,749 
AAA 
 
8,045 
     Ser. CZ, 3.25%, 7/01/09, FSA    No Opt. Call    7,839,289 
 
  Honolulu City & Cnty. GO,         
AAA 
 
1,880 
     Ser. A, 5.00%, 3/01/09, MBIA    No Opt. Call    1,932,508 
AAA 
 
4,750 
     Ser. E, 4.00%, 7/01/08, FGIC    No Opt. Call    4,766,198 
 
          21,066,744 
 
  Illinois—12.2%         
 
  Chicago Park Dist., Pkg. Rev. GO,         
AAA 
 
1,750 
     Ser. A, 3.50%, 1/01/09, FGIC    No Opt. Call    1,724,100 
AAA 
 
1,000 
     Ser. C, 3.00%, 1/01/09, AMBAC    No Opt. Call    968,040 
AAA 
 
3,1053
  Chicago Pub. Bldg. RB, Ser. A, Zero Coupon, 1/01/07, MBIA    ETM    3,047,806 
 
  Cook Cnty. High Sch. GO,         
AAA 
 
2,000 
     Arlington Heights Proj., 4.50%, 12/01/08, FSA    No Opt. Call    2,027,660 
AAA 
 
1,1753
     J. Sterling Morton Twnshp. Proj., Zero Coupon, 12/01/09, FGIC    ETM    1,023,778 
AAA 
 
4,805 
     J. Sterling Morton Twnshp. Proj., Zero Coupon, 12/01/09, FGIC    No Opt. Call    4,182,416 

See Notes to Financial Statements.

16


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

 
Principal 
           
 
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
  Illinois—(cont’d)         
AAA 
 
$     13,000 
  Dev. Fin. Auth. Gas Sply. RB, 3.05%, 2/01/33, AMBAC    No Opt. Call    $      12,694,890 
AAA 
 
8,985 
  Du Page Cnty. Forest Presvtn. Dist. GO, Zero Coupon, 11/01/08    No Opt. Call    8,170,330 
AAA 
 
6,750 
  Illinois GO, Ser. 1, 3.50%, 7/01/08, MBIA    No Opt. Call    6,683,715 
AAA 
 
1,455 
  Kane & Du Page Cntys. Sch. Dist. GO, Ser. A, 3.75%, 1/01/09, FSA    No Opt. Call    1,448,845 
 
  Met. Pier & Expo. Auth. Ded. St. Tax RB, McCormick Place Expansion Proj.,         
AAA 
 
8,3853
     Zero Coupon, 6/15/08, FGIC    ETM    7,774,740 
AAA 
 
215 
     Zero Coupon, 6/15/08, FGIC    No Opt. Call    199,010 
AAA 
 
1,5703
     Ser. A, Zero Coupon, 6/15/08, FGIC    ETM    1,455,735 
 
          51,401,065 
 
  Kansas—0.2%         
AAA 
 
1,000 
  Dev. Fin. Auth. Pub. Wtr. Sply. RB, 4.00%, 4/01/09, AMBAC    No Opt. Call    1,003,040 
 
  Kentucky—0.8%         
AAA 
 
3,890 
  Owensboro Elec. Lt. & Pwr. RB, Ser. B, Zero Coupon, 1/01/09, AMBAC    No Opt. Call    3,511,503 
 
  Louisiana—1.3%         
AAA 
 
5,770 
  Pub. Facs. Auth. RB, Ochsner Clinic Fndtn. Proj., Ser. A, 3.50%, 5/15/09, MBIA    No Opt. Call    5,652,292 
 
  Michigan—4.9%         
AAA 
 
6,315 
  Detroit City Sch. Dist. GO, Sch. Bldg. & Site Impvt. Proj., Ser. A, 4.00%, 5/01/09, FGIC    No Opt. Call    6,326,430 
AAA 
 
1,6653
  Detroit GO, 3.50%, 4/01/09, MBIA    ETM    1,638,610 
AAA 
 
3,000 
  Trunk Line RB, Ser. A, 4.125%, 11/01/08, FSA    No Opt. Call    3,019,320 
AAA 
 
2,535 
  Washtenaw Cmnty. Coll. GO, 4.00%, 4/01/09, MBIA    No Opt. Call    2,543,366 
AAA 
 
2,695 
  West Ottawa Pub. Sch. Dist. GO, Ser. B, 3.50%, 5/01/09, FGIC    No Opt. Call    2,657,674 
AAA 
 
2,000 
  Western Twnshps. Util. Auth. Swr. Disp. Sys. GO, 5.00%, 1/01/09, FGIC    No Opt. Call    2,053,540 
AAA 
 
2,160 
  Wyandotte Elec. RB, 6.25%, 10/01/08, MBIA    No Opt. Call    2,218,860 
 
          20,457,800 
 
  Mississippi—0.5%         
AAA 
 
2,175 
  De Soto Cnty. Sch. Dist. GO, 3.25%, 2/01/09, FSA    No Opt. Call    2,124,105 
 
  Nevada—2.7%         
AAA 
 
6,270 
  Clark Cnty. Sch. Dist. GO, Ser. A, 4.00%, 6/01/09, FGIC    No Opt. Call    6,283,418 
 
  Dept. of Bus. & Ind. RB, Las Vegas Monorail Proj.,         
AAA 
 
2,085 
     Zero Coupon, 1/01/09, AMBAC    No Opt. Call    1,868,452 
AAA 
 
3,585 
     Zero Coupon, 1/01/10, AMBAC    No Opt. Call    3,070,875 
 
          11,222,745 
 
  New Jersey—1.3%         
AAA 
 
1,220 
  Econ. Dev. Auth. RB, Econ. Recovery Fund, Ser. A, 4.50%, 3/15/09, MBIA    No Opt. Call    1,239,410 
 
  Monmouth Cnty. Impvt. Auth. Gov’t. Loan RB,         
AAA 
 
1,220 
     3.10%, 4/15/09, AMBAC    No Opt. Call    1,184,230 
AAA 
 
1,000 
     5.00%, 12/01/08, FSA    No Opt. Call    1,026,120 
AAA 
 
1,750 
  Transp. Trust Fund Auth. Transp. Sys. RB, Ser. C, 5.25%, 12/15/08, AMBAC    No Opt. Call    1,803,655 
 
          5,253,415 
 
  New Mexico—1.1%         
AAA 
 
2,030 
  Farmington Util. Sys. RB, Ser. A, 3.50%, 5/15/09, FSA    No Opt. Call    1,996,627 
AAA 
 
2,455 
  Fin. Auth. RB, Fin. Auth. Pub. Impvt. Proj., Ser. A, 3.80%, 6/01/08, MBIA    No Opt. Call    2,453,600 
 
          4,450,227 
 
  New York—12.0%         
AAA 
 
2,000 
  Erie Cnty. Pub. Impvt. GO, Ser. A, 4.50%, 3/15/09, FGIC    No Opt. Call    2,031,300 
AAA 
 
15,500 
  New York City GO, Ser. E, 6.20%, 8/01/07, MBIA    No Opt. Call    15,895,560 
AAA 
 
4,250 
  New York City Hlth. & Hosp. Corp. Hlth. Sys. Svcs. RB, Ser. A, 3.50%, 2/15/09, AMBAC    No Opt. Call    4,182,637 
 
  New York GO,         
AAA 
 
1,4503
     Ser. E, 6.125%, 8/01/06, MBIA    ETM    1,452,393 
AAA 
 
3,550 
     Ser. E, 6.125%, 8/01/06, MBIA    No Opt. Call    3,555,822 
AAA 
 
15,915 
     Ser. F, 5.25%, 9/15/09, MBIA    09/08 @ 101    16,531,229 
AAA 
 
4,000 
  Port Auth. of New York & New Jersey RB, Ser. 129, 2.875%, 11/01/08, FSA    No Opt. Call    3,888,760 
AAA 
 
2,715 
  Thruway Auth. Svc. Contract RB, Local Hwy. & Brdg. Proj., Ser. A, 5.40%, 1/01/09, MBIA    07/06 @ 101    2,737,670 
 
          50,275,371 

See Notes to Financial Statements.

17


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

  Principal             
  Amount        Option Call     
Rating1 
      (000)       
Description 
  Provisions2        Value 
      North Carolina—8.2%         
      Eastn. Mun. Pwr. Agcy. Sys. RB,         
AAA 
  $     13,500       Ser. B, 6.125%, 1/01/09, FGIC    No Opt. Call    $      14,201,865 
AAA 
  5,000       Ser. B, 7.00%, 1/01/08, CAPMAC    No Opt. Call    5,232,000 
AAA 
 
14,6754
     Ser. B, 7.25%, 1/01/07, CAPMAC    N/A    14,921,393 
              34,355,258 
      Ohio—0.5%         
AAA 
  2,000    Bldg. Auth. RB, Workers’ Comp. Facs. Proj., Ser. A, 5.00%, 4/01/09, FGIC    No Opt. Call    2,058,020 
      Oregon—2.0%         
      Dept. of Admin. Svcs.,         
AAA 
  2,905       COP, 5.00%, 11/01/08, FSA    No Opt. Call    2,979,600 
AAA 
  2,255       Lottery RB, Ser. C, 3.125%, 4/01/09, FSA    No Opt. Call    2,191,838 
AAA 
  1,285    Lane Cnty. Sch. Dist. No. 4 GO, 3.00%, 1/01/09, FSA    No Opt. Call    1,247,234 
AAA 
  2,000    Washington & Clackamas Cntys. Sch. Dist. GO, 3.75%, 6/15/08, MBIA    No Opt. Call    1,996,620 
              8,415,292 
      Pennsylvania—10.3%         
AAA 
  1,460    Bensalem Twnshp. Sch. Dist. GO, 3.25%, 8/15/09, FGIC    No Opt. Call    1,421,865 
AAA 
  1,500    Bristol Twnshp. Sch. Dist. GO, 4.25%, 2/15/09, FGIC    No Opt. Call    1,514,325 
      Dauphin Cnty. Gen. Auth. RB, HAPSCO-Western PA. Hosp. Proj.,         
AAA 
  3,570       Ser. A, 6.25%, 7/01/08, MBIA    07/06 @ 100    3,574,463 
AAA 
 
1,8703
     Ser. B, 6.25%, 7/01/08, MBIA    ETM    1,911,252 
      Dept. of Gen. Svcs. COP,         
AAA 
  2,075       4.50%, 5/01/08, FSA    No Opt. Call    2,098,385 
AAA 
  2,120       4.50%, 11/01/08, FSA    No Opt. Call    2,151,143 
AAA 
  2,165       4.50%, 5/01/09, FSA    No Opt. Call    2,201,004 
AAA 
  2,220       4.50%, 11/01/09, FSA    No Opt. Call    2,262,380 
AAA 
  16,250    Lehigh Cnty. Indl. Dev. Auth. PCRB, 3.125%, 11/01/08, AMBAC    No Opt. Call    15,878,850 
AAA 
  3,175    Philadelphia GO, 4.10%, 9/15/08, FSA    No Opt. Call    3,193,383 
AAA 
  3,125    Pittsburgh Pub. Pkg. Auth. Pkg. RB, 3.25%, 12/01/08, AMBAC    No Opt. Call    3,064,375 
AAA 
  3,955    West Chester Area Sch. Dist. GO, Ser. AA, 3.65%, 1/15/09, MBIA    07/07 @ 100    3,943,649 
              43,215,074 
      South Carolina—0.9%         
AAA 
  2,020    Chester Cnty. Sch. Dist. GO, 3.25%, 2/01/09, FSA    No Opt. Call    1,976,247 
AAA 
  1,705    Lexington Cnty. Sch. Dist. 1 COP, 3.50%, 3/01/09, AMBAC    No Opt. Call    1,682,477 
              3,658,724 
      Tennessee—0.2%         
AAA 
  1,000    Clarksville Wtr. Swr. & Gas RB, 4.30%, 2/01/09, FSA    No Opt. Call    1,010,640 
      Texas—24.7%         
AAA 
  5,380    Austin Pub. Impvt. GO, 3.50%, 9/01/08, FSA    No Opt. Call    5,324,478 
      Austin Util. Sys. RB,         
AAA 
  5,000       6.625%, 11/15/08, AMBAC    No Opt. Call    5,294,600 
AAA 
  11,515       Ser. A, Zero Coupon, 11/15/08, MBIA    No Opt. Call    10,461,493 
AAA 
  5,000       Ser. A, Zero Coupon, 11/15/09, AMBAC    No Opt. Call    4,354,300 
AAA 
  5,000       Ser. A, Zero Coupon, 11/15/09, MBIA    No Opt. Call    4,354,300 
      Coppell Indpt. Sch. Dist. GO,         
AAA 
 
1,4303
     6.10%, 8/15/09, MBIA    ETM    1,516,458 
AAA 
  620       6.10%, 8/15/09, MBIA    08/06 @ 100    621,507 
AAA 
  2,500    Dallas Wtr. Wks. & Swr. Sys. RB, 3.50%, 4/01/09, FSA    No Opt. Call    2,460,450 
AAA 
  4,390    Houston Indpt. Sch. Dist. GO, Zero Coupon, 8/15/09, AMBAC    No Opt. Call    3,863,815 
      Lower Colorado River Auth. RB,         
AAA 
  2,010       3.50%, 5/15/09, MBIA    No Opt. Call    1,976,956 
AAA 
  2,690       5.25%, 5/15/09, FSA    No Opt. Call    2,785,710 
AAA 
  1,650    Lubbock Cnty. GO, 3.50%, 2/15/09, FGIC    No Opt. Call    1,627,378 
      Mun. Pwr. Agcy. RB,         
AAA 
 
1,0753
     Zero Coupon, 9/01/08, AMBAC    ETM    988,602 
AAA 
  13,925       Zero Coupon, 9/01/08, AMBAC    No Opt. Call    12,781,479 
AAA 
 
1,1553
     Zero Coupon, 9/01/09, AMBAC    ETM    1,016,585 
AAA 
  15,020       Zero Coupon, 9/01/09, AMBAC    No Opt. Call    13,224,209 
AAA 
  1,500    North Texas Tollway Auth. RB, Ser. C, 5.00%, 1/01/09, FSA    No Opt. Call    1,538,370 

See Notes to Financial Statements.

18


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

 
Principal 
           
 
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
  Texas—(cont’d)         
 
  Pub. Fin. Auth. Bldg. RB, Gen Svcs. Comm. Proj.,         
AAA 
 
$      2,2504
     5.50%, 2/01/08, AMBAC    N/A    $      2,329,582 
AAA 
 
750 
     5.50%, 2/01/09, AMBAC    02/08 @ 101    775,598 
 
  Pub. Fin. Auth. RB,         
AAA 
 
2,270 
     3.50%, 2/01/09, FGIC    No Opt. Call    2,236,926 
AAA 
 
5,900 
     Ser. B, 6.25%, 2/01/09, AMBAC    No Opt. Call    6,226,801 
AAA 
 
6,0003
  San Antonio Elec. & Gas RB, Ser. B, Zero Coupon, 2/01/10, FGIC    ETM    5,179,920 
AAA 
 
9,050 
  Tarrant Regl. Wtr. Dist. Impvt. RB, 3.50%, 3/01/09, FSA    No Opt. Call    8,914,069 
AAA 
 
1,825 
  Williamson Cnty. GO, Ser. B, 5.00%, 2/15/09, FSA    No Opt. Call    1,875,169 
AAA 
 
2,275 
  Ysleta Indpt. Sch. Dist. GO, Zero Coupon, 8/15/08    No Opt. Call    2,086,266 
 
          103,815,021 
 
  Utah—3.3%         
 
  Intermountain Pwr. Agcy. Sply. RB,         
AAA 
 
2,2153
     Ser. B, 6.00%, 7/01/07, MBIA    ETM    2,263,664 
AAA 
 
1,285 
     Ser. B, 6.00%, 7/01/07, MBIA    No Opt. Call    1,311,599 
AAA 
 
10,3004
  Utah, GO, Ser. F, 5.00%, 7/01/07    N/A    10,427,411 
 
          14,002,674 
 
  Washington—10.9%         
AAA 
 
1,250 
  Clark Cnty. Pub. Util. Dist. No. 1 RB, 5.00%, 1/01/09, MBIA    No Opt. Call    1,281,975 
 
  Hlth. Care Fac. Auth. RB, Catholic Hlth. Initiatives Proj.,         
AAA 
 
1,010 
     Ser. A, 5.30%, 12/01/08, MBIA    No Opt. Call    1,040,219 
AAA 
 
1,000 
     Ser. A, 5.40%, 12/01/10, MBIA    06/10 @ 101    1,052,660 
AAA 
 
12,850 
  King Cnty. GO, Ser. D, 5.55%, 12/01/08, MBIA    12/07 @ 102    13,334,316 
AAA 
 
3,060 
  King Cnty. Pub. Transp. Sales Tax GO, 3.50%, 12/01/08, FSA    No Opt. Call    3,021,077 
AAA 
 
2,045 
  Motor Vehicle Fuel Tax GO, 4.00%, 7/01/09, MBIA    No Opt. Call    2,051,851 
 
  Pub. Pwr. Sply. RB,         
AAA 
 
11,000 
     Ser. A, 5.80%, 7/01/07, FSA    No Opt. Call    11,211,970 
AAA 
 
5,550 
     Nuclear Proj. No. 3, Zero Coupon, 7/01/07, MBIA    No Opt. Call    5,343,096 
AAA 
 
2,000 
     Nuclear Proj. No. 3, Zero Coupon, 7/01/08, MBIA    No Opt. Call    1,843,320 
AAA 
 
5,710 
  Seattle Impvt. Ltd. Tax GO, 4.00%, 7/01/08, FSA    No Opt. Call    5,724,047 
 
          45,904,531 
 
  West Virginia—1.5%         
AAA 
 
1,550 
  Econ. Dev. Auth. RB, Correctional Juvenile & Pub. Proj., Ser. A, 4.25%, 6/01/08, MBIA    No Opt. Call    1,560,091 
 
  Higher Ed. Policy Comm. RB,         
AAA 
 
2,455 
     St. Coll. Fac. Proj., Ser. A, 5.00%, 4/01/09, MBIA    No Opt. Call    2,523,003 
AAA 
 
2,135 
     Univ. Facs. Proj., Ser. A, 5.00%, 4/01/09, MBIA    No Opt. Call    2,194,139 
 
          6,277,233 
 
  Wisconsin—1.5%         
AAA 
 
6,080 
  Wisconsin, GO, Ser. C, 4.00%, 5/01/09, MBIA    No Opt. Call    6,099,030 
 
  Wyoming—0.3%         
AAA 
 
1,270 
  Albany Cnty. Impvts. Statutory Trust COP, 3.75%, 1/15/09, MBIA    No Opt. Call    1,265,149 
 
  Total Long-Term Investments (cost $537,746,831)        544,257,884 
 
  SHORT-TERM INVESTMENTS—32.9%         
 
  Connecticut—1.5%         
A-1+ 
 
6,5555
  St. Hlth. & Edl. RB, Quinnipac Univ. Proj., Ser. F, 4.00%, 7/03/06, RAA, FRDD    N/A    6,555,000 
 
  Florida—2.2%         
A-1+ 
 
9,1555
  Pinellas Cnty. Hlth. Fac. Auth. RB, 4.04%, 7/03/06, AMBAC, FRDD    N/A    9,155,000 
 
  Illinois—1.6%         
A-1+ 
 
6,6005
  Joliet Regl. Port Dist. Marine Term. RB, Exxon Corp. Proj., 3.84%, 7/03/06, FRDD    N/A    6,600,000 
 
  Kansas—0.8%         
A-1+ 
 
3,4555
  Dept. Transp. Hwy. RB, Ser. B-1, 3.89%, 7/03/06, FRDD    N/A    3,455,000 
 
  Kentucky—1.9%         
A-1+ 
 
8,0005
  Kentucky, Inc. Pub. Energy Auth. RB, Ser. A, 4.06%, 7/03/06, FRDD    N/A    8,000,000 
 
  Louisiana—0.3%         
A-1+ 
 
1,3005
  East Baton Rouge Parish PCRB, Exxon Proj., 3.97%, 7/03/06, FRDD    N/A    1,300,000 
 
  Maryland—0.5%         
VMIG1 
 
2,0005
  Cmnty. Dev. Admin. Multi-Fam. Hsg. RB, Avalon Lea Apts. Proj., 3.97%, 7/05/06, FRWD    N/A    2,000,000 

See Notes to Financial Statements.

19


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

  Principal         
  Amount         
Rating1 
     
(000) 
     
Description 
  Value 
      Massachusetts—4.9%     
      Hlth. & Edl. Fac. Auth. RB, Harvard Univ. Proj.,     
A-1+ 
  $     12,0005      Ser. BB, 3.92%, 7/06/06, FRWD    $      12,000,000 
A-1+ 
  8,6505      Ser. R, 3.90%, 7/03/06, FRDD    8,650,000 
          20,650,000 
      Michigan—0.3%     
      Detroit Swr. Disp. RB,     
A-1+ 
  9955      Ser. A, 4.00%, 7/05/06, MBIA, FRWD    997,296 
A-1+ 
  4905      Ser. C-1, 3.98%, 7/06/06, FSA, FRWD    490,000 
          1,487,296 
      Missouri—3.6%     
      St. Hlth. & Edl. Fac. RB,     
A-1+ 
  5,1005      Med. Research Facs. Stowers Inst. Proj., 3.98%, 7/06/06, MBIA, FRWD    5,100,000 
A-1+ 
  10,0005      SSM Hlth. Care Proj., Ser. C-1, 3.96%, 7/03/06, FSA, FRDD    10,000,000 
          15,100,000 
      New Jersey—0.2%     
A-1+ 
  1,0155   Edl. Fac. Auth. RB, Princeton Univ. Proj., Ser. B, 3.90%, 7/03/06, FRDD    1,015,000 
      New York—2.5%     
A-1+ 
  1,7005   Jay Str. Dev. Corp. Cts. Fac. Lease RB, Ser. A-2, 3.97%, 7/03/06, FRDD    1,700,000 
A-1+ 
  6,7755   New York City GO, Ser. H-7, 3.95%, 7/03/06, FRDD    6,775,000 
A-1+ 
  1,9005   New York City Mun. Wtr. Fin. Auth. Wtr. & Swr. Sys. RB, Ser. C, 3.92%, 7/03/06, FRDD    1,900,000 
          10,375,000 
      North Carolina—4.3%     
A-1+ 
  7,3705   Buncombe Cnty. Met. Swr. Dist. Swr. Sys. RB, 3.97%, 7/06/06, XLCA, FRWD    7,370,000 
A-1+ 
  10,5505   Mecklenburg Cnty. GO, Ser. C, 3.98%, 7/06/06, FRWD    10,550,000 
          17,920,000 
      Ohio—4.3%     
VMIG1 
  7,0005   Hamilton Cnty. Hosp. Facs. RB, Ser. A, 3.97%, 7/05/06, FRWD    7,000,000 
A-1+ 
  5005   Kent St. Univ. RB, 3.98%, 7/05/06, MBIA, FRWD    500,000 
VMIG1 
  10,6055   Univ. of Akron RB, 3.97%, 7/06/06, FGIC, FRWD    10,605,000 
          18,105,000 
      Pennsylvania—1.0%     
VMIG1 
  4,3855   Higher Ed. Facs. Auth. RB, St. Sys. Higher Ed. Proj., Ser. A, 3.96%, 7/06/06, MBIA, FRWD    4,385,000 
      Puerto Rico—0.6%     
A-1 
  2,5005   Hwy. & Transp. Auth. RB, Ser. A, 3.94%, 7/05/06, AMBAC, FRWD    2,500,000 
      Tennessee—0.1%     
VMIG1 
  2605   Clarksville Pub. Bldg. Auth. RB, 4.05%, 7/03/06, FRDD    260,000 
      Washington—0.6%     
A-1+ 
  2,5005   Snohomish Cnty. Pub Util. Dist. No. 001 Generation Sys. RB, Ser. A-1,     
         3.96%, 7/05/06, FSA, FRWD    2,500,000 

See Notes to Financial Statements.

20


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

Shares         
(000)   
Description 
  Value 
 
    Money Market Fund—1.7%     
7,150    AIM Tax Free Investment Co. Cash Reserve Portfolio    $      7,150,000 
    Total Short-Term Investments (cost $138,512,296)    138,512,296 
    Total Investments—162.4% (cost $676,259,1276)    $  682,770,180 
    Other assets in excess of liabilities—2.1%    8,814,557 
    Preferred shares at redemption value, including dividends payable—(64.5)%   
(271,125,237)
    Net Assets Applicable to Common Shareholders—100%    $  420,459,500 


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

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

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

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

5 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

6 Cost for Federal income tax purposes is $675,832,899. The net unrealized appreciation on a tax basis is $6,937,281, consisting of $11,170,137 gross unrealized appreciation and $4,232,856 gross unrealized depreciation.

The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 85.6% of the Trust’s managed assets:

AMBAC 
 
21.6% 
CAPMAC 
 
3.0% 
FGIC 
 
12.9% 
FSA 
 
18.6% 
MBIA 
 
26.4% 
RAA 
 
1.0% 
XLCA 
 
1.1% 
Other 
 
1.0% 

KEY TO ABBREVIATIONS 
AMBAC    American Municipal Bond Assurance Corp.    GO    General Obligation 
CAPMAC    Capital Markets Assurance Co.    MBIA    Municipal Bond Insurance Assoc. 
COP    Certificate of Participation    PCRB    Pollution Control Revenue Bond 
ETM    Escrowed to Maturity    RAA    Radian Asset Assurance 
FGIC    Financial Guaranty Insurance Co.    RB    Revenue Bond 
FRDD    Floating Rate Daily Demand    ST    Special Tax 
FRWD    Floating Rate Weekly Demand    XLCA    XL Capital Assurance 
FSA    Financial Security Assurance         

See Notes to Financial Statements.

21


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Insured Municipal Term Trust (BMT)

  Principal             
  Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
      LONG-TERM INVESTMENTS—129.4%         
      Alabama—0.9%         
AAA 
  $      1,000    Birmingham Jefferson Civic Ctr. Auth. ST, Ser. A, 4.375%, 1/01/11, FSA    No Opt. Call    $      1,016,900 
AAA 
  1,410    Fed. Hwy. Fin. Auth. RB, Grant Antic. Notes, Ser. A, 4.50%, 3/01/11, MBIA    No Opt. Call    1,441,993 
              2,458,893 
      Alaska—8.3%         
      Anchorage GO,         
AAA 
  14,345       Ser. B, 4.125%, 7/01/11, MBIA    No Opt. Call    14,431,644 
AAA 
  6,000       Ser. B, 4.625%, 7/01/10, FGIC    No Opt. Call    6,150,240 
AAA 
  1,260    Univ. of Alaska RB, Ser. K, 3.75%, 10/01/10, FGIC    No Opt. Call    1,250,688 
              21,832,572 
      Arizona—3.2%         
AAA 
  1,000    Arizona St. Univ. RB, 4.20%, 7/01/11, FGIC    No Opt. Call    1,011,210 
AAA 
  1,030    Mesa GO, Ser. A, 3.75%, 7/01/10, FGIC    No Opt. Call    1,023,593 
AAA 
  6,340    Pima Cnty. Str. & Hwy. RB, 4.25%, 7/01/11, FGIC    07/08 @ 101    6,393,066 
              8,427,869 
      Arkansas—0.2%         
AAA 
  500    Little Rock Cap. Impvt. GO, 4.00%, 4/01/11, FSA    No Opt. Call    500,830 
      California—6.9%         
AAA 
  145    California GO, 6.80%, 11/01/10, FGIC    11/06 @ 100    146,404 
AAA 
  6,1003   Contra Costa Trans. Auth. Sales Tax RB, 6.50%, 3/01/09, FGIC    ETM    6,348,697 
      Dept. of Wtr. Res. Pwr. Sply. RB,         
AAA 
  5,000       Ser. A, 3.60%, 5/01/10, AMBAC    No Opt. Call    4,919,300 
AAA 
  3,500       Ser. A, 3.70%, 5/01/11, MBIA    No Opt. Call    3,454,255 
AAA 
  3,065    Los Angeles Cnty. RB, Asset Leasing Corp. Proj., 4.05%, 12/01/10, AMBAC    No Opt. Call    3,330,398 
              18,199,054 
      Colorado—1.2%         
AAA 
  3,245    Weld Cnty. Sch. Dist. No. 6, GO, 3.75%, 12/01/10, FSA    No Opt. Call    3,224,102 
      Delaware—0.4%         
AAA 
  1,015    Delaware River & Bay Auth. RB, 3.75%, 1/01/11, MBIA    No Opt. Call    1,006,728 
      District of Columbia—4.1%         
AAA 
  10,000    Dist. of Columbia GO, Ser. B, 5.50%, 6/01/11, FSA    No Opt. Call    10,652,200 
      Florida—0.9%         
AAA 
  2,320    Tampa Wtr. & Swr. RB, 5.50%, 10/01/10, FSA    No Opt. Call    2,462,564 
      Hawaii—4.7%         
AAA 
  11,0804   Hawaii GO, Ser. CN, 5.25%, 3/01/07, FGIC    N/A    11,404,866 
AAA 
  1,000    Univ. of Hawaii RB, Univ. Sys. Proj., 3.875%, 7/15/10, FGIC    No Opt. Call    997,230 
              12,402,096 
      Illinois—15.7%         
      Chicago GO,         
AAA 
  4,000       Ser. A, 4.375%, 1/01/11, AMBAC    No Opt. Call    4,059,360 
AAA 
  1,790       Ser. A, 5.00%, 1/01/11, MBIA    No Opt. Call    1,862,083 
      Chicago Park Dist. Pkg. GO,         
AAA 
  3,120       Ser. A, 3.50%, 1/01/10, FGIC    No Opt. Call    3,051,953 
AAA 
  3,695       Ser. A, 4.00%, 1/01/11, FGIC    No Opt. Call    3,693,485 
      Du Page & Cook Cntys. Cmnty. United Sch. Dist. No. 205 GO,         
Aaa 
  3153      4.50%, 1/01/11, FGIC    ETM    322,056 
AAA 
  685       4.50%, 1/01/11, FGIC    No Opt. Call    698,652 
AAA 
  1,750    Du Page & Will Cntys. Sch. Dist. GO, 4.25%, 12/30/10, FGIC    No Opt. Call    1,769,932 
      Du Page Cnty. Forest Presvtn. Dist. GO,         
AAA 
  5,000       Zero Coupon, 11/01/10    No Opt. Call    4,176,500 
AAA 
  11,965       Zero Coupon, 11/01/11    No Opt. Call    9,556,685 
      Illinois GO,         
AAA 
  1,500       Ser. 1, 4.50%, 2/01/11, FGIC    No Opt. Call    1,533,510 
AAA 
  2,000       Ser. 1, 4.50%, 4/01/11, FSA    No Opt. Call    2,045,240 
AAA 
  4,000       Ser. 1, 5.25%, 2/01/11, FGIC    No Opt. Call    4,213,640 

See Notes to Financial Statements.

22


BlackRock Insured Municipal Term Trust (BMT) (continued)

  Principal             
  Amount        Option Call     
Rating1 
      (000)       
Description 
  Provisions2        Value 
      Illinois—(cont’d)         
AAA 
  $      2,265    Kane & Du Page Cntys. Sch. Dist. GO, Ser. A, 4.00%, 1/01/11, FSA    No Opt. Call    $      2,264,071 
AAA 
  1,025    Orland Park GO, Ser. A, 3.50%, 12/01/10, FGIC    No Opt. Call    999,027 
AAA 
  1,075    Rockford Sch. Dist. GO, 4.30%, 2/01/11, FGIC    No Opt. Call    1,087,868 
              41,334,062 
      Indiana—4.1%         
      Indianapolis Loc. Pub. Impvt. RB, Bond Bank Wtr. Wks. Proj.,         
AAA 
  2,085       Ser. A, 4.25%, 7/01/10, MBIA    No Opt. Call    2,104,787 
AAA 
  2,815       Ser. A, 4.375%, 1/01/11, MBIA    No Opt. Call    2,853,312 
AAA 
  2,950       Ser. A, 4.375%, 7/01/11, MBIA    No Opt. Call    2,994,221 
AAA 
  2,635    Mun. Pwr. Agcy. Pwr. Sply. Sys. RB, Ser. A, 4.50%, 1/01/11, AMBAC    No Opt. Call    2,689,676 
              10,641,996 
      Kansas—0.8%         
      Dev. Fin. Auth. Pub. Wtr. Sply. RB,         
AAA 
  1,025       4.125%, 4/01/10, AMBAC    No Opt. Call    1,031,826 
AAA 
  1,000       4.25%, 4/01/11, AMBAC    No Opt. Call    1,011,500 
              2,043,326 
      Kentucky—4.0%         
AAA 
  12,675    Econ. Dev. Fin. Sys. RB, Norton Hlth. Care, Inc. Proj., Ser. B, Zero Coupon, 10/01/10, MBIA    No Opt. Call    10,597,821 
      Louisiana—1.9%         
AAA 
  5,000    Pub. Facs. Auth. RB, Ochsner Clinic Fndtn. Proj., Ser. B, 4.00%, 5/15/11, MBIA    No Opt. Call    4,973,600 
      Michigan—2.5%         
      Detroit GO,         
AAA 
  1,580       4.00%, 4/01/10, MBIA    No Opt. Call    1,579,384 
AAA 
  1,955       4.00%, 4/01/11, MBIA    No Opt. Call    1,949,898 
AAA 
  70    Mun. Bd. Auth. RB, Ser. A, 6.50%, 11/01/12, MBIA    07/06 @ 100    70,114 
AAA 
  2,810    Wyandotte City Sch. Dist. GO, Bldg. & Site, 4.00%, 5/01/11, FSA    No Opt. Call    2,808,651 
              6,408,047 
      Minnesota—1.9%         
AAA 
  2,800    Hopkins Indpt. Sch. Dist. No. 270, GO, Ser. B, 4.00%, 2/01/11, FSA    No Opt. Call    2,802,240 
A+ 
 
2,1803
  So. Minnesota Mun. Pwr. Agcy. RB, Ser. B, 5.75%, 1/01/11    ETM    2,201,735 
              5,003,975 
      Nevada—2.0%         
      Dept. of Bus. & Ind. RB, Las Vegas Monorail Proj.,         
AAA 
  3,795       Zero Coupon, 1/01/11, AMBAC    No Opt. Call    3,102,754 
AAA 
  2,870       Zero Coupon, 1/01/12, AMBAC    No Opt. Call    2,239,863 
              5,342,617 
      New Jersey—0.4%         
AAA 
  1,000    Monmouth Cnty. Impvt. Auth. RB, Gov’t. Loan, 3.375%, 12/01/10, FSA    No Opt. Call    969,380 
      New Mexico—3.2%         
      Fin. Auth. Pub. Proj. RB,         
AAA 
  1,433       Ser. A, 3.40%, 6/01/11, MBIA    No Opt. Call    1,381,398 
AAA 
  1,035       Ser. A, 4.20%, 6/01/10, MBIA    No Opt. Call    1,043,870 
AAA 
  1,870       Ser. A, 4.30%, 6/01/11, MBIA    No Opt. Call    1,893,861 
AAA 
 
2,2303
  Hwy. Comm. RB, Ser. B, 4.75%, 6/15/11, AMBAC    ETM    2,304,259 
AAA 
  1,750    Las Cruces Sch. Dist. No. 002 GO, 5.25%, 8/01/11, FSA    08/09 @ 100    1,814,592 
              8,437,980 
      New York—5.6%         
AAA 
  8,950    Long Island Pwr. Auth. Elec. Sys. RB, Ser. A, 5.50%, 12/01/10, AMBAC    No Opt. Call    9,505,258 
AAA 
  5,000    Thruway Auth. Personal Income Tax RB, Ser. A, 5.00%, 3/15/11, FSA    No Opt. Call    5,229,100 
              14,734,358 
      Ohio—0.8%         
AAA 
  1,000    Akron GO, 4.00%, 12/01/10, MBIA    No Opt. Call    1,003,180 
AAA 
  1,015    Univ. of Cincinnati RB, Ser. G, 3.50%, 6/01/09, AMBAC    No Opt. Call    1,000,079 
              2,003,259 

See Notes to Financial Statements.

23


BlackRock Insured Municipal Term Trust (BMT) (continued)

 
Principal 
           
 
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
  Oregon—3.6%         
AAA 
 
$      1,995 
  Lane Cnty. Sch. Dist. No. 4 GO, 3.75%, 1/01/11, FSA    No Opt. Call    $      1,978,741 
 
  Washington & Clackamas Cntys. Sch. Dist. GO,         
AAA 
 
3,820 
     4.00%, 6/15/10, MBIA    No Opt. Call    3,832,377 
AAA 
 
3,720 
     4.00%, 6/15/11, MBIA    No Opt. Call    3,726,547 
 
          9,537,665 
 
  Pennsylvania—6.4%         
AAA 
 
2,430 
  Central York Sch. Dist. GO, 4.125%, 6/01/11, FGIC    No Opt. Call    2,447,642 
AAA 
 
1,8753
  Dauphin Cnty. Gen. Auth. RB, HAPSCO-Western PA. Hosp. Proj., Ser. B, 6.25%, 7/01/07, MBIA     ETM    1,916,362 
AAA 
 
7,500 
  Higher Edl. Facs. Auth. RB, Univ. of PA. Hlth. Svcs. Proj., Ser. A, 5.25%, 8/01/10, FSA    08/09 @ 101    7,801,350 
AAA 
 
2,100 
  Philadelphia Wtr. & Wst. RB, 5.625%, 6/15/08, AMBAC    No Opt. Call    2,169,447 
AAA 
 
1,075 
  State Pub. Sch. Bldg. Auth. RB, York Sch. Dist. Proj., 4.75%, 5/01/11, FSA    No Opt. Call    1,111,873 
AAA 
 
1,250 
  Wilson Sch. Dist. GO, 4.00%, 5/15/10, FSA    No Opt. Call    1,253,950 
 
          16,700,624 
 
  Rhode Island—2.0%         
AAA 
 
235 
  Clean Wtr. Protection Fin. Agcy. PCRB, Ser. A, 6.70%, 10/01/10, MBIA    10/06 @ 100    236,579 
AAA 
 
5,0003
  Rhode Island St. & Providence Plantations GO, Ser. B, 4.20%, 6/01/10, FGIC    ETM    5,051,850 
 
          5,288,429 
 
  Tennessee—0.8%         
 
  Clarksville Wtr. Swr. & Gas RB,         
AAA 
 
1,005 
     4.45%, 2/01/10, FSA    No Opt. Call    1,023,562 
AAA 
 
1,100 
     4.65%, 2/01/11, FSA    No Opt. Call    1,131,878 
 
          2,155,440 
 
  Texas—15.8%         
AAA 
 
1,090 
  Addison GO, 3.375%, 2/15/11, FGIC    No Opt. Call    1,052,602 
 
  Bexar Met. Wtr. Dist. Wtr. Wks. Sys. RB,         
AAA 
 
1,085 
     3.70%, 5/01/10, FSA    No Opt. Call    1,075,051 
AAA 
 
1,090 
     3.80%, 5/01/11, FSA    No Opt. Call    1,080,016 
AAA 
 
2,000 
  Dallas Rapid Transit RB, 4.30%, 12/01/10, AMBAC    No Opt. Call    2,026,360 
 
  Harris Cnty. GO,         
AAA 
 
1,500 
     Ser. A, 5.00%, 10/01/10, FSA    No Opt. Call    1,556,640 
AAA 
 
3303
     Ser. B, Zero Coupon, 8/15/08, FGIC    ETM    304,003 
AAA 
 
2,255 
     Ser. B, Zero Coupon, 8/15/08, FGIC    No Opt. Call    2,070,067 
AAA 
 
2,490 
  Houston Area Wtr. Corp. RB, Northeast Wtr. Purification Proj., 4.50%, 3/01/11, FGIC    No Opt. Call    2,542,265 
 
  Houston GO,         
AAA 
 
5,000 
     Ser. A, 5.00%, 3/01/11, MBIA    No Opt. Call    5,216,600 
AAA 
 
2,000 
     Ser. A1, 5.00%, 3/01/11, MBIA    No Opt. Call    2,086,640 
AAA 
 
10,440 
  Houston Wtr. & Swr. Sys. RB, Ser. C, Zero Coupon, 12/01/10, AMBAC    No Opt. Call    8,690,360 
AAA 
 
5,550 
  Katy Indpt. Sch. Dist. GO, Ser. A, Zero Coupon, 2/15/11, PSF    No Opt. Call    4,566,040 
AAA 
 
4,000 
  Mun. Pwr. Agcy. RB, 5.50%, 9/01/10, MBIA    No Opt. Call    4,233,520 
AAA 
 
2,245 
  Pub. Fin. Auth. RB, 4.00%, 2/01/11, FGIC    No Opt. Call    2,244,955 
AAA 
 
1,250 
  Texas Tech Univ. RB, Ser. 9, 5.00%, 2/15/11, AMBAC    No Opt. Call    1,302,075 
AAA 
 
1,500 
  Univ. of Houston RB, Ser. A, 4.00%, 2/15/10, FSA    No Opt. Call    1,502,955 
 
          41,550,149 
 
  Utah—2.4%         
AAA 
 
3,470 
  Intermountain Pwr. Agcy. Sply. RB, Ser. A, 5.25%, 7/01/11, MBIA    07/09 @ 101    3,625,734 
AAA 
 
3,175 
  Salt Lake Cnty. Wtr. Conservancy Dist. RB, Ser. A, Zero Coupon, 10/01/10, AMBAC    No Opt. Call    2,654,681 
 
          6,280,415 
 
  Washington—13.0%         
AAA 
 
7,345 
  Benton Cnty. Sch. Dist. No. 17 GO, Kennewick Sch. Proj., 4.50%, 12/01/10, FSA    No Opt. Call    7,500,567 
AAA 
 
1,000 
  Chelan Cnty. Sch. Dist. GO, 4.50%, 12/01/10, FSA    No Opt. Call    1,021,180 
AAA 
 
3,000 
  Clark Cnty. Pub. Util. Dist. No. 1 Elec. RB, 4.50%, 1/01/11, AMBAC    No Opt. Call    3,061,020 
AAA 
 
2,040 
  Clark Cnty. Sch. Dist. No. 114 GO, Evergreen Proj., 4.125%, 12/01/10, FSA    No Opt. Call    2,052,587 
 
  Pub. Pwr. Sply. Sys. RB,         
AAA 
 
1,300 
     Ser. B, Zero Coupon, 7/01/10, MBIA    No Opt. Call    1,101,074 
AAA 
 
3,745 
     Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10, MBIA    No Opt. Call    3,171,940 
AAA 
     
9,1603
     Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10, MBIA    ETM    7,773,543 
AAA 
 
1,010 
  Tacoma GO, 4.625%, 12/01/10, FGIC    No Opt. Call    1,036,452 
AAA 
 
5,0004
  Washington GO, Ser. A, 5.50%, 7/01/09, MBIA    N/A    5,224,850 
AAA 
 
2,280 
  Whatcom Cnty. Sch. Dist. No. 503 GO, 4.50%, 12/01/10, FSA    No Opt. Call    2,328,290 
 
          34,271,503 

See Notes to Financial Statements.

24


BlackRock Insured Municipal Term Trust (BMT) (continued)

 
Principal 
           
 
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
  West Virginia—3.6%         
 
  Econ. Dev. Auth. RB, Correctional Juvenile & Pub.,         
AAA 
 
$      4,420 
     Ser. A, 4.50%, 6/01/11, MBIA    No Opt. Call    $      4,515,384 
AAA 
 
3,705 
     Ser. A, 4.50%, 6/01/10, MBIA    No Opt. Call    3,776,581 
AAA 
 
1,170 
  Sch. Bldg. Auth. RB, 4.00%, 7/01/11, AMBAC    No Opt. Call    1,169,473 
 
          9,461,438 
 
  Wisconsin—5.9%         
AAA 
 
1,045 
  Appleton Wtr. Wks. RB, 4.375%, 1/01/11, FGIC    No Opt. Call    1,060,947 
 
  Clean Wtr. RB,         
AAA 
 
4,640 
     Ser. 2, 4.00%, 6/01/10, MBIA    No Opt. Call    4,646,496 
AAA 
 
9,850 
     Ser. 2, 4.00%, 6/01/11, MBIA    No Opt. Call    9,845,370 
 
          15,552,813 
 
  Wyoming—2.2%         
 
  Albany Cnty. Impvts. Statutory Trust, COP,         
AAA 
 
1,325 
     4.00%, 1/15/10, MBIA    No Opt. Call    1,327,584 
AAA 
 
1,450 
     4.00%, 7/15/10, MBIA    No Opt. Call    1,452,132 
AAA 
 
1,480 
     4.00%, 1/15/11, MBIA    No Opt. Call    1,479,985 
AAA 
 
1,510 
     4.00%, 7/15/11, MBIA    No Opt. Call    1,509,305 
 
          5,769,006 
 
  Total Long-Term Investments (cost $332,261,443)        340,224,811 
 
  SHORT-TERM INVESTMENTS—33.5%         
 
  California—1.0%         
A-1+ 
 
2,4955
  Infrastructure & Econ. Dev. Bank RB, 3.95%, 7/05/06, AMBAC, FRWD    N/A    2,495,000 
 
  District of Columbia—0.8%         
SP-1+ 
 
2,0005
  District of Columbia GO, 3.95%, 7/05/06, FSA, FRWD    N/A    2,000,000 
 
  Idaho—0.8%         
A-1+ 
 
2,1655
  Hlth. Facs. Auth. RB, 3.98%, 7/03/06, FSA, FRDD    N/A    2,165,000 
 
  Illinois—0.9%         
SP-1+ 
 
2,4805
  St. Toll Hwy. Auth. RB, 3.98%, 7/05/06, MBIA, FRWD    N/A    2,480,000 
 
  Kentucky—0.2%         
F1+ 
 
5755
  Breckinridge Cnty. Lease RB, 4.00%, 7/05/06, FRWD    N/A    575,000 
 
  Louisiana—1.1%         
A-1+ 
 
3,0005
  East Baton Rouge Parish PCRB, Exxon Proj., 3.97%, 7/03/06, FRDD    N/A    3,000,000 
 
  Maryland—1.4%         
A-1+ 
 
3,6685
  Hlth. & Higher Edl. Fac. Auth. RB, 3.98%, 7/06/06, FRWD    N/A    3,668,000 
 
  Massachusetts—7.2%         
 
  Hlth. & Edl. Fac. Auth. RB, Harvard Univ. Proj.,         
A-1+ 
 
5,0005
     Ser. BB, 3.92%, 7/06/06, FRWD    N/A    5,000,000 
A-1+ 
 
12,3505
     Ser. GG-1, 3.92%, 7/06/06, FRWD    N/A    12,350,000 
A-1+ 
 
1,6005
     Ser. R, 3.90%, 7/03/06, FRDD    N/A    1,600,000 
 
          18,950,000 
 
  Missouri—3.0%         
A-1+ 
 
7,9005
  St. Hlth. & Edl. Fac. RB, Med. Research Facs. Stowers Inst. Proj., 3.98%, 7/06/06, MBIA, FRWD    N/A    7,900,000 
 
  New Jersey—1.3%         
A-1+ 
 
3,2805
  Sports & Expo. Auth. RB, Ser. B2, 3.90%, 7/05/06, MBIA, FRWD    N/A    3,280,000 
 
  North Carolina—2.6%         
A-1+ 
 
6,8455
  Buncombe Cnty. Met. Swr. Dist. Swr. Sys. RB, 3.97%, 7/06/06, XLCA, FRWD    N/A    6,845,000 
 
  Ohio—7.2%         
VMIG1 
 
10,0005
  Columbus Regl. Arpt. Auth. RB, Ser. A, 3.99%, 7/06/06, FRWD    N/A    10,000,000 
VMIG1 
 
8,9005
  Hamilton Cnty. Hosp. Facs. RB, Ser. A, 3.97%, 7/05/06, FRWD    N/A    8,900,000 
 
          18,900,000 
 
  Pennsylvania—1.8%         
A-1+ 
 
1,5005
  Emmaus Gen. Auth. RB, 3.98%, 7/05/06, FSA, FRWD    N/A    1,500,000 
A-1+ 
 
2,0005
  Erie Wtr. Auth. RB, 3.98%, 7/06/06, FSA, FRWD    N/A    2,000,000 
A-1+ 
 
1,1005
  Harrisburg Auth. Sch. RB, Adj. Harrisburg Proj., 3.97%, 7/06/06, AMBAC, FRWD    N/A    1,100,000 
VMIG1 
 
1055
  Higher Ed. Facs. Auth. RB, St. Sys. Higher Ed. Proj., Ser. A, 3.96%, 7/06/06, MBIA, FRWD    N/A    105,000 
 
          4,705,000 

See Notes to Financial Statements.

25


BlackRock Insured Municipal Term Trust (BMT) (continued)

    Principal         
    Amount         
Rating1 
      (000)       
Description 
  Value 
 
        Puerto Rico—0.4%     
A-1    $      1,0005   Gov’t. Dev. Bank RB, 3.87%, 7/05/06, MBIA, FRWD    $      1,000,000 
        Tennessee—2.5%     
VMIG1    6,6205   Clarksville Pub. Bldg. Auth. RB, 4.05%, 7/03/06, FRDD    6,620,000 
             
    Shares         
    (000)         
        Money Market Fund—1.3%     
NR   
3,500 
  AIM Tax Free Investment Co. Cash Reserve Portfolio    3,500,000 
        Total Short-Term Investments (cost $88,083,000)    88,083,000 
        Total Investments—162.9% (cost $420,344,4436)    $  428,307,811 
        Other assets in excess of liabilities—2.0%    5,193,993 
        Preferred shares at redemption value, including dividends payable—(64.9)%   
(170,595,847)
        Net Assets Applicable to Common Shareholders—100%    $  262,905,957 


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

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

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

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

5 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

6 Cost for Federal income tax purposes is $420,043,127. The net unrealized appreciation on a tax basis is $8,264,684, consisting of $9,267,880 gross unrealized appreciation and $1,003,196 gross unrealized depreciation.

The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 84.2% of the Trust’s managed assets:

AMBAC 
 
13.9% 
FGIC 
 
16.4% 
FSA 
 
17.7% 
MBIA 
 
32.7% 
PSF 
 
1.1% 
XLCA 
 
1.6% 
Other 
 
0.8% 

KEY TO ABBREVIATIONS 
AMBAC 
 
American Municipal Bond Assurance Corp.    GO    General Obligation 
COP 
 
Certificate of Participation    MBIA    Municipal Bond Insurance Assoc. 
ETM 
 
Escrowed to Maturity    PCRB    Pollution Control Revenue Bond 
FGIC 
 
Financial Guaranty Insurance Co.    RB    Revenue Bond 
FRDD 
 
Floating Rate Daily Demand    ST    Special Tax 
FRWD 
 
Floating Rate Weekly Demand    XLCA  
 
XL Capital Assurance 
FSA 
 
Financial Security Assurance         

See Notes to Financial Statements.

26


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Municipal 2018 Term Trust (BPK)

   
Principal 
           
   
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
   
  LONG-TERM INVESTMENTS—151.0%         
   
  Alabama—2.5%         
A2   
$      5,845 
  Huntsville Hlth. Care Auth. RB, Ser. A, 5.625%, 6/01/22    06/12 @ 101    $      6,125,209 
   
  California—7.0%         
A   
1,750 
  Agua Caliente Band of Cahuilla Indians RB, 5.60%, 7/01/13    No Opt. Call    1,797,040 
AAA   
5,425 
  Clovis Unified Sch. Dist. Cap. Apprec. Election 2004 GO, Ser. A, Zero Coupon, 8/01/21, FGIC    No Opt. Call    2,638,829 
NR   
1,235 
  Lincoln Cmny. Facs. Dist. 1 ST, 5.90%, 9/01/24    09/13 @ 102    1,295,058 
BBB+   
5,000 
  Poll. Ctrl. Fin. Auth. Sld. Wst. Disp. RB, Republic Svcs., Inc. Proj., Ser. C, 5.25%, 6/01/23    No Opt. Call    5,146,400 
BBB   
6,500 
  Poll. Ctrl. Sld. RB, Wst. Mgmt. Inc. Proj., Ser. C, 5.125%, 11/01/23    11/15 @ 101    6,580,340 
   
          17,457,667 
   
  Colorado—4.2%         
BBB   
5,000 
  Hsg. & Fin. Auth. Sld. Wst. RB, Wst. Mgmt. Inc. Proj., 5.70%, 7/01/18    No Opt. Call    5,294,150 
Baa2   
5,010 
  Park Creek Met. Dist. RB, Sr. Ltd. Ppty. Tax Proj., 5.25%, 12/01/20    12/15 @ 101    5,135,801 
   
          10,429,951 
   
  Connecticut—1.6%         
Baa3   
3,7503
  Mashantucket Western Pequot Tribe Spec. RB, Ser. B, 5.75%, 9/01/18    09/07 @ 102    3,877,800 
   
  Florida—10.8%         
NR   
670 
  Baywinds Cmnty. Dev. Dist. SA, Ser. B, 4.90%, 5/01/12    No Opt. Call    666,938 
Baa5   
1,5854
  Cap. Trust Agcy. Multi-Fam. Hsg. RB, American Oppty. Proj., Ser. A, 5.75%, 6/01/23    06/13 @ 102    1,511,662 
NR   
2,000 
  CFM Cmnty. Dev. Dist. Cap. Impvt. RB, Ser. B, 5.875%, 5/01/14    No Opt. Call    2,028,000 
   
  Live Oak Cmnty. Dev. Dist. SA,         
NR   
1,860 
     No. 1, Ser. B, 5.00%, 11/01/09    No Opt. Call    1,847,426 
NR5   
90 
     No. 2, Ser. B, 5.30%, 5/01/08    No Opt. Call    90,079 
BB+   
4,515 
  Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21    11/14 @ 100    5,008,444 
NR   
1,595 
  Pine Islands Cmnty. Dev. Dist. Util. Sys. RB, 5.30%, 11/01/10    No Opt. Call    1,572,750 
NR   
3,920 
  Stevens Plantation Cmnty. Dist. SA, Ser. B, 6.375%, 5/01/13    No Opt. Call    3,966,334 
NR5   
5,410 
  Vlg. Ctr. Cmnty. Dev. Dist. RB, Ser. B, 5.875%, 1/01/15    No Opt. Call    5,519,661 
NR   
3,130 
  Vlg. of Westport Cmnty. Dev. Dist. Cap. Impvt. RB, Ser. A, 5.40%, 5/01/20    05/13 @ 100    3,074,036 
NR   
1,450 
  Westchester Cmnty. Dev. Dist. No. 1 SA, 6.00%, 5/01/23    05/13 @ 101    1,506,768 
   
          26,792,098 
   
  Illinois—24.3%         
NR   
1,8253
  Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23    No Opt. Call    1,815,273 
   
  Chicago O’Hare Intl. Arpt. RB,         
AAA   
5,000 
     Ser. A, 5.00%, 1/01/19, AMBAC    01/16 @ 100    5,167,850 
AAA   
8,000 
     Ser. A, 5.00%, 1/01/20, AMBAC    01/16 @ 100    8,243,680 
AAA   
5,000 
     Ser. A, 5.75%, 1/01/18, MBIA    01/12 @ 100    5,313,300 
A2   
12,5004
,6 Dev. Fin. Auth. Adventist Hlth. Sys. RB, Sunbelt Oblig. Proj., 5.50%, 11/15/09    N/A    13,176,375 
BBB   
5,980 
  Edl. Facs. Auth. Student Hsg. Edl. Adv. Fund RB, Univ. Ctr. Proj., 6.00%, 5/01/22    05/12 @ 101    6,383,112 
Baa2   
2,750 
  Fin. Auth. Student Hsg. RB, MJH Ed. Asst. Living Proj., Ser. A, 5.50%, 6/01/19    06/14 @ 100    2,872,045 
A   
5,000 
  Hlth. Facs. Auth. RB, Elmhurst Mem. Hlth. Care Proj., 5.50%, 1/01/22    01/13 @ 100    5,156,550 
   
  Kane & Du Page Cntys. Sch. Dist. GO,         
AAA   
4,625 
     Ser. B, Zero Coupon, 1/01/18, FSA    01/12 @ 72.425    2,655,212 
AAA   
4,100 
     Ser. B, Zero Coupon, 1/01/19, FSA    01/12 @ 67.935    2,207,891 
AAA   
2,950 
     Ser. B, Zero Coupon, 1/01/21, FSA    01/12 @ 60.038    1,413,846 
AAA   
1,700 
     Ser. B, Zero Coupon, 1/01/22, FSA    01/12 @ 56.454    760,750 
   
  Sports Facs. Auth. RB,         
AAA   
1,885 
     Zero Coupon, 6/15/19, AMBAC    06/15 @ 101    1,642,872 
AAA   
1,985 
     Zero Coupon, 6/15/20, AMBAC    06/15 @ 101    1,728,141 
AAA   
2,090 
     Zero Coupon, 6/15/21, AMBAC    06/15 @ 101    1,819,199 
   
          60,356,096 
   
  Indiana—10.6%         
AA   
13,9704
  Hlth. Fac. Fin. Auth. RB, Sisters of St. Francis Proj., 5.75%, 11/01/11    N/A    15,278,430 
BBB   
2,500 
  Indianapolis Arpt. Auth. RB, FedEx Corp. Proj., 5.10%, 1/15/17    No Opt. Call    2,542,750 
BBB+   
4,000 
  Petersburg PCRB, Pwr. & Lt. Conv. Proj., 5.75%, 8/01/21    08/11 @ 102    4,214,520 
NR   
4,350 
  Vincennes Econ. Dev. RB, Southwest Indiana Regl. Youth Proj., 6.25%, 1/01/24    01/09 @ 102    4,195,619 
   
          26,231,319 

See Notes to Financial Statements.

27


BlackRock Municipal 2018 Term Trust (BPK) (continued)

   
Principal 
           
   
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
   
  Louisiana—1.3%         
AAA   
$      3,145 
  Pub. Facs. Auth. Dept. of Pub. Safety RB, 5.875%, 6/15/14, MBIA    06/10 @ 100    $      3,298,350 
   
  Maryland—2.1%         
NR   
5,170 
  Frederick Cnty. ST, Urbana Cmnty. Dev. Auth. Proj., Ser. A, 5.80%, 7/01/20    07/07 @ 102    5,217,771 
   
  Michigan—3.1%         
A1   
5,4504
  Hosp. Fin. Auth. RB, Henry Ford Hlth. Sys. Proj., Ser. A, 6.00%, 11/15/09    N/A    5,838,530 
A   
700 
  Pontiac Tax Increment Fin. Auth. Dev. Area 2 RB, 5.625%, 6/01/22, ACA    06/12 @ 101    732,718 
A   
1,000 
  Pontiac Tax Increment Fin. Auth. Dev. Area 3 RB, 5.375%, 6/01/17, ACA    06/12 @ 101    1,038,160 
   
          7,609,408 
   
  Mississippi—4.2%         
BBB   
9,000 
  Lowndes Cnty. Sld. Wst. Disp. PCRB, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22    No Opt. Call    10,480,590 
   
  Multi-State—10.3%         
A3   
14,0003
  Charter Mac Equity Issuer Trust, Ser. A-3, 6.80%, 10/01/52    No Opt. Call    15,575,840 
   
  Munimae TE Bond Subsidiary LLC,         
Baa1   
6,0003
     Ser. B2, 5.20%, 6/30/49    09/14 @ 100    6,039,420 
Baa3   
4,0003
     Ser. D, 5.90%, 11/29/49    09/15 @ 101    3,971,520 
   
          25,586,780 
   
  Nevada—3.0%         
BBB+   
5,000 
  Dept. of Bus. & Ind. Republic Svc. RB, 5.625%, 12/01/26    No Opt. Call    5,259,150 
NR   
1,000 
  Henderson Local Impvt. Dist. No. T18 SA, 5.15%, 9/01/21    09/06 @ 103    988,100 
NR   
1,100 
  Las Vegas Spec. Imp. Dist. 809, RB, Summerlin Area Proj., 5.35%, 6/01/17    12/06 @ 103    1,104,455 
   
          7,351,705 
   
  New Hampshire—6.3%         
   
  Bus. Fin. Auth. PCRB, Pub. Svc. Co. Proj.,         
AAA   
6,000 
     Ser. B, 4.75%, 5/01/21, MBIA    06/13 @ 102    5,942,940 
AAA   
7,000 
     Ser. C, 5.45%, 5/01/21, MBIA    05/12 @ 101    7,483,420 
A+   
2,025 
  Hlth. & Ed. Facs. Auth. RB, Exeter Hosp. Proj., 6.00%, 10/01/24    10/11 @ 101    2,188,053 
   
          15,614,413 
   
  New Jersey—12.7%         
   
  Econ. Dev. Auth.,         
BBB   
8,500 
     RB, Cigarette Tax Proj., 5.50%, 6/15/24    06/12 @ 100    8,802,430 
B   
4,065 
     RB, Continental Airlines, Inc. Proj., 7.00%, 11/15/30    11/10 @ 101    4,183,983 
B   
6,750 
     RB, Continental Airlines, Inc. Proj., 7.20%, 11/15/30    11/10 @ 101    7,008,120 
Baa3   
8,410 
     SA, Kapkowski Rd. Landfill Proj., 5.50%, 4/01/16    No Opt. Call    8,855,225 
NR   
2,500 
  Middlesex Cnty. Impvt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.125%, 1/01/25    01/15 @ 100    2,519,250 
   
          31,369,008 
   
  New York—7.9%         
AA-   
7,500 
  City of New York GO, 5.00%, 9/01/18    09/15 @ 100    7,749,900 
B   
3,460 
  New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj., 7.625%, 8/01/25    08/16 @ 101    3,995,989 
AA-   
7,500 
  Tobacco Settlement Fin. Corp. SA, Ser. B1, 5.50%, 6/01/20    06/13 @ 100    7,977,000 
   
          19,722,889 
   
  North Carolina—1.7%         
A-   
4,000 
  Wake Cnty. Ind. Facs. PCRB, Carolina Pwr. & Lt. Co. Proj., 5.375%, 2/01/17    02/12 @ 101    4,169,680 
   
  Ohio—0.2%         
NR   
500 
  Pinnacle Cmnty. Infrastructure Fin. Auth. Facs. RB, Ser. A, 6.00%, 12/01/22    12/14 @ 101    512,450 
   
  Oklahoma—1.2%         
B   
2,700 
  Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35    No Opt. Call    2,978,802 
   
  Pennsylvania—7.4%         
NR   
2,000 
  Montgomery Cnty. Indl. Dev. Auth. RB, Whitemarsh Continuing Care Proj., 6.00%, 2/01/21    02/15 @ 100    2,097,360 
   
  Philadelphia Auth. for Ind. Dev. RB,         
AAA   
5,000 
     Ser. B, 5.50%, 10/01/18, FSA    10/11 @ 101    5,337,700 
AAA   
5,000 
     Ser. B, 5.50%, 10/01/19, FSA    10/11 @ 101    5,332,850 
   
  West Cornwall Twnshp. Mun. Auth. Coll. RB, Elizabethtown Coll. Proj.,         
BBB+   
2,5004
     5.90%, 12/15/11    N/A    2,648,650 
BBB+   
2,6504
     6.00%, 12/15/11    N/A    2,828,027 
   
          18,244,587 

See Notes to Financial Statements.

28


BlackRock Municipal 2018 Term Trust (BPK) (continued)

   
Principal 
           
   
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
   
  South Carolina—2.1%         
BBB+   
$      5,000 
  Jobs Econ. Dev. Auth. Hosp. Fac. RB, Palmetto Hlth. Alliance Proj., Ser. A, 6.125%, 8/01/23    08/13 @ 100    $      5,297,749 
   
  Tennessee—2.5%         
AAA   
12,000 
  Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd. Hosp. Facs. RB, Ser. A, Zero Coupon, 1/01/19, FSA    01/13 @ 71.667    6,114,000 
   
  Texas—11.2%         
BBB   
2,000 
  Alliance Arpt. Auth., Inc. Spl. Fac. RB, Fedex Corp. Proj., 4.85%, 4/01/21    04/16 @ 100    1,954,560 
   
  Birdville Indpt. Sch. Dist. GO,         
AAA   
1,615 
     Zero Coupon, 2/15/18    No Opt. Call    933,308 
AAA   
1,815 
     Zero Coupon, 2/15/19    No Opt. Call    990,700 
AAA   
2,625 
     Zero Coupon, 2/15/20    No Opt. Call    1,354,789 
AAA   
2,500 
     Zero Coupon, 2/15/21    No Opt. Call    1,220,350 
BBB   
10,010 
  Brazos River Auth. PCRB, TXU Elec. Co. Proj., Ser. C, 5.75%, 5/01/36    No Opt. Call    10,512,302 
   
  Dallas Ft. Worth Intl. Arpt. Fac. Impvt. RB,         
AAA   
5,000 
     Ser. A, 5.875%, 11/01/17, FGIC    11/11 @ 100    5,353,400 
AAA   
5,000 
     Ser. A, 5.875%, 11/01/18, FGIC    11/11 @ 100    5,341,150 
   
          27,660,559 
   
  Trust Territories—1.6%         
A   
4,0003
  San Manuel Entertainment Auth., 2004 Gaming Proj., Ser. C, 4.50%, 12/01/16    12/13 @ 102    3,918,160 
   
  Washington—4.7%         
   
  Energy Northwest Wind Proj. RB,         
A-   
5,0004
     Ser. A, 6.00%, 1/01/07    N/A    5,198,200 
A-   
6,1754
     Ser. B, 5.875%, 1/01/07    N/A    6,416,134 
   
          11,614,334 
   
  Wisconsin—6.5%         
   
  Hlth. & Edl. Facs. Auth. RB,         
AA-   
4,5604
     Foredert & Cmnty. Proj., 5.375%, 10/01/11    N/A    4,901,498 
AA-   
440 
     Foredert & Cmnty. Proj., 5.375%, 10/01/21    10/11 @ 101    455,378 
A   
10,000 
     Wheaton Franciscan Svcs. Proj., 6.25%, 8/15/22    02/12 @ 101    10,827,700 
   
          16,184,576 
   
  Total Long-Term Investments (cost $357,251,494)        374,215,951 
   
  SHORT-TERM INVESTMENTS—3.0%         
   
  New York—1.2%         
A-1+   
3,0007
  Triborough Brdg. & Tunl. Auth. RB, 3.93%, 7/06/06, FRWD    N/A    3,000,000 
   
  Tennessee—1.1%         
VMIG1   
2,7007
  Montgomery Cnty. Pub. Bldg. Auth. RB, 4.05%, 7/03/06, FRDD    N/A    2,700,000 

See Notes to Financial Statements.

29


BlackRock Municipal 2018 Term Trust (BPK) (continued)

Shares       
(000) 
Description 
  Value 
 
  Money Market Fund—0.7%     
1,750  AIM Tax Free Investment Co. Cash Reserve Portfolio    $       1,750,000 
  Total Short-Term Investments (cost $7,450,000)    7,450,000 
  Total Investments—154.0% (cost $364,701,4948)    $  381,665,951 
  Other assets in excess of liabilities—1.5%    3,824,601 
  Preferred shares at redemption value, including dividends payable—(55.5)%   
(137,621,962)
  Net Assets Applicable to Common Shareholders—100%    $  247,868,590 


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

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

3 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2006, the Trust held 14.2% of its net assets, with a current market value of $35,198,013, in securities restricted as to resale.

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

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

6 Security pledged as collateral.

7 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

8 Cost for Federal income tax purposes is $364,605,064. The net unrealized appreciation on a tax basis is $17,060,887, consisting of $18,106,460 gross unrealized appreciation and $1,045,573 gross unrealized depreciation.

KEY TO ABBREVIATIONS
ACA 
 
American Capital Access    MBIA 
 
Municipal Bond Insurance Assoc. 
AMBAC 
 
American Municipal Bond Assurance Corp.    PCRB 
 
Pollution Control Revenue Bond 
FGIC 
 
Financial Guaranty Insurance Co.    RB 
 
Revenue Bond 
FRDD 
 
Floating Rate Daily Demand    SA 
 
Special Assessment 
FRWD 
 
Floating Rate Weekly Demand    ST 
 
Special Tax 
FSA 
 
Financial Security Assurance    TA 
 
Tax Allocation 
GO 
 
General Obligation     
 

See Notes to Financial Statements.

30


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Municipal 2020 Term Trust (BKK)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        LONG-TERM INVESTMENTS—148.9%         
        California—22.9%         
A+    $     12,000    California, GO, 5.00%, 11/01/22    11/13 @ 100    $      12,272,160 
        Foothill/Eastern Corridor Agcy. Toll Rd. Cap. Apprec. RB,         
BBB    12,500       Zero Coupon, 1/15/21    01/10 @ 53.346    5,324,625 
BBB    10,000       Zero Coupon, 1/15/22    01/10 @ 50.177    4,007,600 
        Golden St. Tobacco Sec. Corp. RB,         
BBB    3,000       Ser. A-1, 6.625%, 6/01/40    06/13 @ 100    3,333,150 
BBB    12,010       Ser. A-1, 6.75%, 6/01/39    06/13 @ 100    13,431,383 
BBB    975       Ser. A-3, 7.875%, 6/01/42    06/13 @ 100    1,167,114 
BBB    1,470       Ser. A-5, 7.875%, 6/01/42    06/13 @ 100    1,759,649 
AAA    20,0003      Ser. B, 5.375%, 6/01/10    N/A    21,050,200 
AAA    6,865    Riverside Cnty. RB, Riverside Cnty. Hosp. Proj., Zero Coupon, 6/01/25, MBIA    No Opt. Call    2,620,645 
A+    5,000    Statewide Cmntys. Dev. Auth. RB, John Muir Hlth. Proj., Ser. A, 5.00%, 8/15/22    08/16 @ 100    5,099,200 
                70,065,726 
        Colorado—1.7%         
AAA    4,500    E-470 Pub. Hwy. Auth. Cap. Apprec. RB, Ser. B, Zero Coupon, 9/01/22, MBIA    No Opt. Call    2,036,205 
Baa2    3,000    Park Creek Met. Dist. RB, 5.25%, 12/01/25    12/15 @ 101    3,033,480 
                5,069,685 
        District of Columbia—5.2%         
        District of Columbia RB, Friendship Pub. Charter Sch., Inc. Proj.,         
A    3,320       5.00%, 6/01/23, ACA    06/14 @ 100    3,267,743 
A    2,680       5.75%, 6/01/18, ACA    06/14 @ 100    2,833,028 
AAA    5,0004   Met. Washington Arpts. Auth. Arpt. Sys. RB, Ser. C-2, 5.00%, 10/01/24, FSA    10/14 @ 100    5,094,250 
BBB    4,215    Tobacco Settlement Fin. Corp. RB, 6.50%, 5/15/33    No Opt. Call    4,739,430 
                15,934,451 
        Florida—15.0%         
NR    830    Baywinds Cmnty. Dev. Dist. SA, Ser. B, 4.90%, 5/01/12    No Opt. Call    826,207 
NR    4,690    Bellago Edl. Facs. Benefit Dist. SA, Ser. A, 5.85%, 5/01/22    05/14 @ 100    4,745,342 
Baa2    1,500    Cap. Trust Agcy. Multi-Fam. Hsg. RB, American Oppty. Proj., Ser. A, 5.75%, 6/01/23    06/13 @ 102    1,430,595 
NR    3,000    CFM Cmnty. Dev. Dist. Cap. Impvt. RB, Ser. B, 5.875%, 5/01/14    No Opt. Call    3,042,000 
NR    4,320    Grand Hampton Cmnty. Dev. Dist. Cap. Impvt. RB, 6.10%, 5/01/24    05/13 @ 101    4,438,541 
NR    4,025    Habitat Cmnty. Dev. Dist. SA, 5.80%, 5/01/25    05/14 @ 101    4,106,546 
BB+    5,475    Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21    11/14 @ 100    6,073,363 
NR    4,525    Middle Vlg. Cmnty. Dev. Dist. SA, Ser. A, 5.80%, 5/01/22    05/13 @ 100    4,607,626 
NR    1,000    Pine Islands Cmnty. Dev. Dist. Util. Sys. RB, 5.30%, 11/01/10    No Opt. Call    986,050 
NR    6,080    Stevens Plantation Cmnty. Dist. SA, Ser. B, 6.375%, 5/01/13    No Opt. Call    6,151,866 
NR    3,480    Vlg. Cmnty. Dev. Dist. Assmt. No. 5 SA, Ser. A, 6.00%, 5/01/22    05/13 @ 101    3,600,478 
NR    5,810    Westchester Cmnty. Dev. Dist. No. 1 SA, 6.00%, 5/01/23    05/13 @ 101    6,037,461 
                46,046,075 
        Georgia—1.6%         
BBB    2,500    Milledgeville Baldwin Cnty. Dev. Auth. RB, Georgia Coll. & St. Univ. Fndtn. Proj., 5.50%, 9/01/24    09/14 @ 101    2,599,975 
BBB    2,350    Richmond Cnty. Dev. Auth. Env. Impvt. RB, 5.75%, 11/01/27    11/13 @ 100    2,400,407 
                5,000,382 
        Illinois—12.4%         
NR    2,1555   Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23    No Opt. Call    2,143,514 
        Chicago O’Hare Intl. Arpt. RB,         
AAA    5,000       Ser. A, 5.00%, 1/01/21, AMBAC    01/16 @ 100    5,144,550 
AAA    7,000       Ser. A, 5.00%, 1/01/22, AMBAC    01/16 @ 100    7,191,590 
A-    5,000    Dev. Fin. Auth. RB, DePaul Univ. Proj., Ser. C, 5.25%, 10/01/24    10/14 @ 100    5,189,100 
AA+    4,800    Edl. Fac. Auth. RB, Northwestern Univ. Proj., 5.00%, 12/01/21    12/13 @ 100    4,943,376 
        Fin. Auth. Student Hsg. RB, MJH Ed. Asst. Living Proj.,         
Baa2    2,725       Ser. A, 5.00%, 6/01/24    06/14 @ 100    2,721,594 
Baa2    3,250       Ser. A, 5.50%, 6/01/19    06/14 @ 100    3,394,235 
Baa3    1,075       Ser. B, 5.00%, 6/01/24    06/14 @ 100    1,062,229 
AAA    13,455    Met. Pier & Expo. Auth. Ded. RB, McCormick Place Expansion Proj., Ser. A, Zero Coupon,         
           6/15/22, MBIA    No Opt. Call    6,257,920 
                38,048,108 

See Notes to Financial Statements.

31


BlackRock Municipal 2020 Term Trust (BKK) (continued)

   
Principal 
           
   
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
   
  Indiana—4.9%         
BBB   
$     10,000 
  Indianapolis Arpt. Auth. RB, FedEx Corp. Proj., 5.10%, 1/15/17    No Opt. Call    $      10,171,000 
NR   
5,140 
  Vincennes Econ. Dev. RB, Southwest Indiana Regl. Youth Proj., 6.25%, 1/01/24    01/09 @ 102    4,957,581 
   
          15,128,581 
   
  Kansas—1.0%         
AAA   
6,440 
  Wyandotte Cnty. Unified Gov’t. SO RB, Intl. Speedway Proj., Zero Coupon,         
   
     12/01/20, MBIA    No Opt. Call    3,175,500 
   
  Kentucky—1.3%         
BBB   
3,750 
  Maysville Sld. Wst. Disp. RB, Inland Container Corp. Proj., 6.90%, 9/01/22    09/13 @ 102    4,081,837 
   
  Louisiana—0.7%         
BBB   
2,000 
  De Soto Parish Env. Impvt. RB, Ser. A, 5.85%, 11/01/27    11/13 @ 100    2,054,860 
   
  Maryland—5.6%         
   
  Frederick Cnty. ST, Urbana Cmnty. Dev. Auth. Proj.,         
NR   
3,000 
     6.625%, 7/01/25    07/07 @ 102    3,090,270 
NR   
5,171 
     Ser. A, 5.80%, 7/01/20    07/07 @ 102    5,218,780 
BBB+   
8,500 
  Hlth. & Higher Edl. Facs. RB, Medstar Hlth. Proj., 5.375%, 8/15/24    08/14 @ 100    8,795,800 
   
          17,104,850 
   
  Massachusetts—1.5%         
BBB   
4,500 
  Dev. Fin. Agcy. Sld. Wst. Disp. RB, Wst. Mgmt., Inc. Proj., 5.45%, 6/01/14    No Opt. Call    4,693,275 
   
  Minnesota—0.4%         
A2   
1,250 
  Higher Ed. Facs. Auth. RB, Univ. of St. Thomas Proj., Ser. 5, 5.00%, 10/01/24    10/14 @ 100    1,276,988 
   
  Mississippi—1.0%         
BBB   
3,000 
  Warren Cnty. Env. Impvt. RB, Intl. Paper Proj., Ser. A, 5.85%, 11/01/27    11/13 @ 100    3,082,290 
   
  Missouri—3.5%         
BBB+   
5,000 
  Dev. Fin. Brd. RB, Branson Landing Proj., Ser. A, 5.50%, 12/01/24    06/14 @ 100    5,161,300 
AA   
5,500 
  Hlth. & Ed. Fac. RB, BJC Hlth. Sys. Proj., Ser. A, 5.00%, 5/15/20    05/15 @ 100    5,646,190 
   
          10,807,490 
   
  Multi-State—7.3%         
   
  Charter Mac Equity Issuer Trust,         
A3   
1,0005
     Ser. A, 5.75%, 4/30/15    No Opt. Call    1,048,510 
A3   
2,5005
     Ser. A, 6.00%, 4/30/19    No Opt. Call    2,670,700 
Baa1   
4,0005
     Ser. B, 6.00%, 4/30/15    No Opt. Call    4,115,360 
Baa1   
2,5005
     Ser. B, 6.30%, 4/30/19    No Opt. Call    2,609,375 
   
  Munimae TE Bond Subsidiary, LLC,         
Baa2   
5,0005
     Ser. C1, 5.80%, 6/30/49    09/14 @ 100    4,963,550 
Baa2   
5,0005
     Ser. C2, 5.80%, 6/30/49    09/19 @ 100    4,895,650 
Baa3   
2,0005
     Ser. D, 5.90%, 9/15/49    09/15 @ 101    1,985,760 
   
          22,288,905 
   
  Nevada—0.6%         
NR   
1,765 
  Henderson Local Impvt. Dist. No. T18 SA, 5.15%, 9/01/21    09/06 @ 103    1,743,997 
   
  New Hampshire—4.9%         
AAA   
10,000 
  Bus. Fin. Auth. PCRB, Pub. Svc. Co. Proj., Ser. B, 4.75%, 5/01/21, MBIA    06/13 @ 102    9,904,900 
A-   
5,000 
  Hlth. & Edu. Fac. RB, Elliot Hosp. Proj., Ser. B, 5.60%, 10/01/22    10/13 @ 100    5,201,400 
   
          15,106,300 
   
  New Jersey—11.8%         
   
  Econ. Dev. Auth. RB,         
Baa3   
7,500 
     Kapkowski Rd. Landfill Proj., 6.50%, 4/01/31    No Opt. Call    8,511,075 
BBB   
11,500 
     Cigarette Tax Proj., 5.50%, 6/15/24    06/12 @ 100    11,909,170 
B   
5,000 
     Continental Airlines, Inc. Proj., 7.00%, 11/15/30    11/10 @ 101    5,146,350 
B   
1,500 
     Continental Airlines, Inc. Proj., 9.00%, 6/01/33    06/13 @ 101    1,708,065 
BBB-   
1,000 
     First Mtg. Winchester Proj., Ser. A, 4.80%, 11/01/13    No Opt. Call    992,560 
Baa1   
4,000 
  Hlth. Care Fac. Fin. Auth. RB, Cap. Hlth. Sys. Oblig. Grp. Proj., Ser. A, 5.75%, 7/01/23    07/13 @ 100    4,211,160 
   
  Middlesex Cnty. Impvt. Auth. RB,         
NR   
2,500 
     Heldrich Ctr. Hotel Proj., Ser. B, 6.125%, 1/01/25    01/15 @ 100    2,519,250 
Baa1   
1,000 
     Str. Student Hsg. Proj., Ser. A, 5.00%, 8/15/23    08/14 @ 100    1,001,420 
   
          35,999,050 

See Notes to Financial Statements.

32


BlackRock Municipal 2020 Term Trust (BKK) (continued)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        New York—8.5%         
        New York City Indl. Dev. Agcy. RB American Airlines,         
B    $      5,635       JFK Intl. Arpt. Proj., 7.625%, 8/01/25    08/16 @ 101    $      6,507,918 
B    5,000       JFK Intl. Arpt. Proj., 7.75%, 8/01/31    08/16 @ 101    5,780,200 
AAA    8,500    St. Energy Research & Dev. RB, Brooklyn Union Gas/Keyspan Proj.,         
           Ser. A, 4.70%, 2/01/24, FGIC    02/16 @ 100    8,310,790 
AA-    5,000    Tobacco Settlement Fin. Corp. SA, Ser. B1, 5.50%, 6/01/20    06/13 @ 100    5,318,000 
                25,916,908 
        Ohio—5.0%         
        Cuyahoga Cnty. RB, Cleveland Clinic Hlth. Sys. Proj.,         
Aa3    3,000       6.00%, 1/01/19    07/13 @ 100    3,269,040 
Aa3    10,000       6.00%, 1/01/20    07/13 @ 100    10,871,900 
NR    1,100    Pinnacle Cmnty. Infrastructure Fin. Auth. Facs. RB, Ser. A, 6.00%, 12/01/22    12/14 @ 101    1,127,390 
                15,268,330 
        Oklahoma—1.2%         
B    3,350    Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35    No Opt. Call    3,695,921 
        Pennsylvania—6.2%         
BBB+    6,680    Higher Edl. Fac. RB, La Salle Univ. Proj., 5.50%, 5/01/26    05/13 @ 100    6,932,972 
A+    10,000    Lancaster Cnty. Hosp. Auth. RB, Gen. Hosp. Proj., 5.75%, 3/15/20    09/13 @ 100    10,684,000 
NR    1,275    Montgomery Cnty. Indl. Dev. Auth. RB, Whitemarsh Continuing Care Proj., 6.00%, 2/01/21    02/15 @ 100    1,337,067 
                18,954,039 
        Puerto Rico—3.6%         
A3    10,900    Elec. Pwr. Auth. RB, Ser. NN, 5.125%, 7/01/24    07/13 @ 100    11,108,081 
        Rhode Island—1.5%         
Baa2    4,5003   Hlth. & Edl. Bldg. Corp. Hosp. Fin. RB, Ser. A, 5.875%, 9/15/08    N/A    4,686,570 
        Texas—5.8%         
BBB    1,100    Brazos River Auth. PCRB, TXU Energy Co. LLC Proj., Ser. A, 6.75%, 4/01/38    No Opt. Call    1,224,047 
BBB-    3,500    Port Corpus Christi Indl. Dev. Corp. RB, Valero Proj., Ser. C, 5.40%, 4/01/18    04/08 @ 102    3,628,520 
        Tpke. Auth. RB, Central Texas Tpke. Sys. Proj.,         
AAA    7,990       Ser. A, Zero Coupon, 8/15/21, AMBAC    No Opt. Call    3,833,762 
AAA    8,450       Ser. A, Zero Coupon, 8/15/24, AMBAC    No Opt. Call    3,443,037 
        Weatherford Indpt. Sch. Dist. GO,         
AAA    6,945       Zero Coupon, 2/15/23, PSF    02/11 @ 50.236    2,826,684 
AAA    6,945       Zero Coupon, 2/15/24, PSF    02/11 @ 47.435    2,666,672 
                17,622,722 
        Trust Territories—1.3%         
A    4,0005   San Manuel Entertainment Auth., 2004 Gaming Proj., Ser.C, 4.50%, 12/01/16    12/13 @ 102    3,918,160 
        U.S. Virgin Islands—0.3%         
BBB    1,000    Pub. Fin. Auth. RB, Sen. Lien Matching Fund Loan, Ser. A, 5.25%, 10/01/17    10/14 @ 100    1,035,060 
        Virginia—7.6%         
NR    5,000    Celebrate North Cmnty. Dev. Auth. SA, Ser. B, 6.60%, 3/01/25    03/14 @ 102    5,200,700 
BBB    10,000    Charles City Cnty. Econ. Dev. Auth. Sld. Wst. Disp. RB, 5.125%, 8/01/27    06/06 @ 100    10,035,100 
Baa1    7,500    Mecklenburg Cnty. Ind. Dev. Auth. RB, Exempt FAC-UAE LP Proj., 6.50%, 10/15/17    10/12 @ 100    8,111,400 
                23,347,200 
        Washington—2.5%         
        Washington, GO,         
AAA    10,000       Ser. S-5, Zero Coupon, 1/01/19, FGIC    No Opt. Call    5,530,800 
AAA    4,630       Mtr. Veh. Proj., Ser. F, Zero Coupon, 12/01/21, MBIA    No Opt. Call    2,183,462 
                7,714,262 
        Wisconsin—2.1%         
        Hlth. & Ed. Fac. Auth. RB, Wheaton Franciscan Svcs. Proj.,         
A    2,880       5.50%, 8/15/17    08/13 @ 100    3,017,722 
A    3,190       5.50%, 8/15/18    08/13 @ 100    3,324,937 
                6,342,659 
        Total Long-Term Investments (cost $439,434,967)        456,318,262 

See Notes to Financial Statements.

33


BlackRock Municipal 2020 Term Trust (BKK) (continued)

    Principal         
    Amount         
Rating1 
     
(000) 
     
Description 
  Value 
 
        SHORT-TERM INVESTMENTS—7.3%     
        Delaware—4.2%     
A-1+    $     13,0006   St. Econ. Dev. Auth. RB, Hosp. Billing Proj., Ser. B, 3.98%, 7/05/06, FRWD    $     13,000,000 
        New York—1.4%     
        Triborough Brdg. & Tunl. Auth. RB,     
A-1+    3,9006  
     3.93%, 7/06/06, FRWD 
  3,900,000 
A-1+    3006  
     3.94%, 7/06/06, FRWD 
  300,000 
            4,200,000 
        North Dakota—0.1%     
VMIG1    3006   Grand Forks Hosp. Fac. RB, United Hosp. Oblig. Grp. Proj., 4.07%, 7/03/06, FRDD    300,000 
        Tennessee—1.6%     
VMIG1   
4,8006
  Montgomery Cnty. Pub. Bldg. Auth. RB, 4.05%, 7/03/06, FRDD    4,800,000 
   
 
       
   
Shares 
       
   
(000) 
       
        Money Market Fund—0.0%     
NR    100    AIM Tax Free Investment Co. Cash Reserve Portfolio    100,000 
        Total Short-Term Investments (cost $22,400,000)    22,400,000 
        Total Investments—156.2% (cost $461,834,9677)    $  478,718,262 
        Other assets in excess of liabilities—1.8%    5,433,085 
        Preferred shares at redemption value, including dividends payable—(58.0)%   
(177,667,551)
        Net Assets Applicable to Common Shareholders—100%    $  306,483,796 


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

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

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

4 Security pledged as collateral.

5 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2006, the Trust held 9.3% of its net assets, with a current market value of $28,350,579, in securities restricted as to resale.

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. Rate shown is rate as of June 30, 2006.

7 Cost for Federal income tax purposes is $461,810,384. The net unrealized appreciation on a tax basis is $16,907,878, consisting of $18,146,103 gross unrealized appreciation and $1,238,225 gross unrealized depreciation.

KEY TO ABBREVIATIONS
ACA 
 
American Capital Access  PCRB 
 
Pollution Control Revenue Bond 
AMBAC 
 
American Municipal Bond Assurance Corp.  PSF 
 
Public School Fund Guaranteed 
FGIC 
 
Financial Guaranty Insurance Co.  RB 
 
Revenue Bond 
FRDD 
 
Floating Rate Daily Demand  SA 
 
Special Assessment 
FRWD 
 
Floating Rate Weekly Demand  SO 
 
Special Obligation 
FSA 
 
Financial Security Assurance  ST 
 
Special Tax 
GO 
 
General Obligation  TA 
 
Tax Allocation 
MBIA 
 
Municipal Bond Insurance Assoc.   
 

See Notes to Financial Statements.

34


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Municipal Target Term Trust (BMN)

  Principal             
  Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
      LONG-TERM INVESTMENTS—50.5%         
      Arkansas—1.1%         
AAA 
  $      5,000    Univ. of Arkansas Athl. Fac. RB, Razorback Stadium Proj., 3.55%, 12/01/21, FSA    No Opt. Call    $      4,995,600 
      California—1.3%         
AAA 
  6,000    California GO, 6.30%, 9/01/06, AMBAC    No Opt. Call    6,023,400 
      Colorado—2.5%         
AAA 
  1,015    El Paso Cnty. COP, Detention Fac. Proj., Ser. B, 2.50%, 12/01/06, AMBAC    No Opt. Call    1,007,408 
AAA 
  9,700    Met. Football Stadium Dist. Sales Tax RB, Ser. A, Zero Coupon, 1/01/07, MBIA    No Opt. Call    9,520,453 
AAA 
  1,100    Thornton COP, 2.50%, 12/01/06, AMBAC    No Opt. Call    1,091,563 
              11,619,424 
      Florida—1.0%         
AAA 
  9103   Orange Cnty. Tourist Dev. RB, Ser. A, 6.375%, 10/01/06, AMBAC    ETM    915,679 
AAA 
  2,000    Sarasota Wtr. & Swr. Sys. RB, 4.25%, 10/01/06, MBIA    No Opt. Call    2,002,200 
AAA 
  1,865    Tampa Wtr. & Swr. RB, 5.50%, 10/01/06, FSA    No Opt. Call    1,872,441 
              4,790,320 
      Hawaii—2.0%         
      Hawaii GO,         
AAA 
  5,675       Ser. CP, 5.50%, 10/01/06, FGIC    No Opt. Call    5,697,359 
AAA 
  1,265       Ser. CW, 3.60%, 8/01/06, FGIC    No Opt. Call    1,264,671 
AAA 
  2,275    Honolulu City & Cnty. GO, Ser. A, 4.00%, 9/01/06, FSA    No Opt. Call    2,275,660 
              9,237,690 
      Illinois—3.5%         
      Champain Cnty. Cmnty. No. 116 GO,         
AAA 
  3853      Ser. C, Zero Coupon, 1/01/07, FGIC    ETM    377,908 
AAA 
  680       Ser. C, Zero Coupon, 1/01/07, FGIC    No Opt. Call    667,345 
AAA 
  15,080    Illinois GO, Ser. I, 3.25%, 11/01/06, FGIC    No Opt. Call    15,042,300 
              16,087,553 
      Indiana—2.0%         
AAA 
  9,000    Univ. Student Fee RB, Zero Coupon, 8/01/06, AMBAC    No Opt. Call    8,975,970 
      Kentucky—1.7%         
      Ppty. & Bldgs. Auth. RB, Proj. No. 69,         
AAA 
  2,035       Ser. B, 4.00%, 8/01/06, FSA    No Opt. Call    2,035,143 
AAA 
  5,560       Ser. C, 4.00%, 8/01/06, FSA    No Opt. Call    5,560,389 
              7,595,532 
      Louisiana—3.8%         
AAA 
  7,480    MuniMae Trust RB, Ser. 7, Cl. A, 4.40%, 12/16/08    No Opt. Call    7,461,973 
AAA 
  5,250    New Orleans GO, Zero Coupon, 9/01/06, AMBAC    No Opt. Call    5,218,605 
AAA 
  4,565    Pub. Facs. Auth. RB, Ochsner Clinic Fndtn. Proj., Ser. A, 3.00%, 5/15/07, MBIA    No Opt. Call    4,511,772 
              17,192,350 
      Michigan—1.1%         
AAA 
  4,850    Trunk Line RB, Ser. A, 4.00%, 11/01/06, FSA    No Opt. Call    4,853,249 
      Minnesota—1.2%         
AAA 
  375    Hsg. Fin. Auth. RB, Ser. D, 5.35%, 8/01/06, MBIA    07/06 @ 101    375,019 
AAA 
  5,075    Met. Council Minneapolis-St. Paul GO, 5.25%, 12/01/06    No Opt. Call    5,106,465 
              5,481,484 
      Nebraska—0.8%         
AAA 
  3,850    Douglas Cnty. Sch. Dist. No. 17 Millard GO, 3.20%, 11/15/06, FSA    No Opt. Call    3,838,027 
      Nevada—0.2%         
AAA 
  8003   Dept. of Bus. & Ind. RB, Las Vegas Monorail Proj., Zero Coupon, 1/01/07, AMBAC    ETM    784,552 
      New Jersey—0.3%         
AAA 
  70    Elizabeth GO, 6.60%, 8/01/06, MBIA    07/06 @ 100    70,113 
AAA 
  1,000    Monmouth Cnty. Impvt. Auth. Gov’t. Loan RB, 2.34%, 12/01/06, FSA    No Opt. Call    991,360 
AAA 
  3753   N. Jersey Dist. Wtr. Sply. RB, Wanaque So. Proj., 6.50%, 7/01/06, MBIA    ETM    375,000 
              1,436,473 

See Notes to Financial Statements.

35


BlackRock Municipal Target Term Trust (BMN) (continued)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        New York—3.9%         
AAA    $      8,070    Hsg. Fin. Agcy. Hsg. Proj. Mtg. RB, Ser. A, 5.50%, 11/01/06, FSA    07/06 @ 102    $      8,081,137 
        New York GO,         
AAA    2,8953      Ser. E, 6.125%, 8/01/06, MBIA    ETM    2,899,777 
AAA    7,105       Ser. E, 6.125%, 8/01/06, MBIA    No Opt. Call    7,116,652 
                18,097,566 
        Ohio—3.9%         
        Bldg. Auth. RB,         
AAA    4,585       Admin. Bldg. Fd. Proj., Ser. A, 5.00%, 10/01/06, FSA    No Opt. Call    4,598,113 
AAA    10,000       Correction Facs. Proj., Ser. A, 5.00%, 10/01/06, FSA    No Opt. Call    10,028,100 
AAA    2,170    Cincinnati City Sch. Dist. Sch. Impvt. GO, 4.00%, 12/01/06, MBIA    No Opt. Call    2,172,192 
AAA    1,285    Milford Sch. Dist. GO, 3.25%, 12/01/06, FSA    No Opt. Call    1,281,312 
                18,079,717 
        Oregon—0.4%         
AAA    2,020    Dept. of Admin. Svcs. COP, Ser. A, 5.00%, 11/01/06, FSA    No Opt. Call    2,027,555 
        Pennsylvania—1.5%         
AAA    1,000    Philadelphia GO, 4.00%, 9/15/06, FSA    No Opt. Call    1,000,390 
AAA    3,620    Pittsburgh Pub. Auth. Pkg. RB, 2.75%, 12/01/06, AMBAC    No Opt. Call    3,597,882 
AAA    2,375    Tpke. Comm. RB, Ser. A, 4.125%, 12/01/06, FGIC    No Opt. Call    2,378,396 
                6,976,668 
        Rhode Island—0.7%         
AAA    3,400    Rhode Island & Providence Plantations GO, Ser. A, 4.00%, 12/01/06, FSA    No Opt. Call    3,403,162 
        Texas—10.3%         
AAA    6,575    Austin Wtr. & Wstwtr. Sys. RB, Ser. C, 3.75%, 11/15/06, FSA    No Opt. Call    6,573,553 
AAA    8,500    Cypress-Fairbanks Indpt. Sch. Dist. GO, Zero Coupon, 8/01/06, AMBAC    No Opt. Call    8,477,305 
AAA    6,355    Dallas Rapid Transit RB, 3.70%, 12/01/06, AMBAC    No Opt. Call    6,352,585 
AAA    2,280    Denton Util. Sys. Mult. Util. Impvt. RB, 4.25%, 12/01/06, AMBAC    No Opt. Call    2,284,195 
AAA    15,000    Mun. Pwr. Agcy. RB, Zero Coupon, 9/01/06, AMBAC    No Opt. Call    14,913,000 
AAA    6,035    MuniMae Trust RB, Ser. 10, Cl. A, 4.40%, 7/25/08    No Opt. Call    6,012,912 
AAA    2,465    Round Rock Indpt. Sch. Dist. GO, Ser. A, 4.25%, 8/01/06, PSF    No Opt. Call    2,465,666 
                47,079,216 
        Utah—1.3%         
AAA    5,950    Utah GO, Ser. B, 4.50%, 7/01/06    No Opt. Call    5,950,000 
        Washington—6.0%         
AAA    1,325    Benton Cnty. Pub. Util. Dist. Elec. RB, 3.75%, 11/01/06, FSA    No Opt. Call    1,324,709 
        King Cnty. GO,         
AAA    753      3.50%, 12/01/06, MBIA    ETM    74,952 
AAA    2,015       3.50%, 12/01/06, MBIA    No Opt. Call    2,011,675 
AAA    2,100    Kitsap Cnty. GO, Ser. B, 4.00%, 12/01/06, AMBAC    No Opt. Call    2,101,869 
AAA    12,875    Pub. Pwr. Sply. RB, Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/06, MBIA    No Opt. Call    12,875,000 
AAA    5,620    Snohomish Cnty. Pub. Util. Dist. Elec. RB, 4.125%, 12/01/06, FSA    No Opt. Call    5,627,587 
AAA    3,3604   Thurston Cnty. Sch. Dist. No. 3 GO, 4.25%, 12/01/06, FSA    N/A    3,366,317 
                27,382,109 
        Total Long-Term Investments (cost $231,876,931)        231,907,617 
        SHORT-TERM INVESTMENTS—49.4%         
        Nebraska—2.2%         
A-1+    10,2375   American Pub. Energy Agcy. Gas Sply. RB, Ser. A, 3.99%, 7/06/06, FRWD    N/A    10,237,000 
        Taxable Commercial Paper—38.1%         
A-1    20,000    Amsterdam Fdg. Corp., 5.07%, 7/11/06    N/A    19,971,833 
F1+    20,000    Atomium Fdg. Corp., 5.07%, 7/05/06    N/A    19,988,733 
F1+    2,000    Credit Suisse FB USA, Inc., 5.17%, 11/02/06    N/A    1,964,385 
A-1    20,000    Fairway Fin. Ltd., 5.05%, 7/05/06    N/A    19,988,778 
F1+    20,000    Nordea N.A., Inc., 5.75%, 12/01/06    N/A    19,560,550 
A-1    16,777    Scaldis Capital LLC, 5.07%, 7/06/06    N/A    16,765,186 
A-1+    20,000    Svenska Handlesbanken, Inc., 5.07%, 7/05/06    N/A    19,988,733 
A-1    20,000    Thames Asset Global Sec., 5.06%, 7/06/06    N/A    19,985,945 
A-1+    16,700    UBS Fin. DE, Inc., 5.05%, 7/07/06    N/A    16,685,944 
A-1    20,000    Victory Receivable Corp., 5.09%, 7/06/06    N/A    19,985,861 
                174,885,948 

See Notes to Financial Statements.

36


BlackRock Municipal Target Term Trust (BMN) (continued)

  Principal         
  Amount         
  (000)                                                                                 Description    Value 
 
      U.S. Government and Agency Securities—5.9%     
 
$ 27,2006
  Fed. Home Loan Bank, 4.972%, 7/03/06    $    27,192,505 
 
 
       
  Shares         
  (000)         
      Money Market Fund—3.2%     
 
14,450 
  AIM Tax Free Investment Co. Cash Reserve Portfolio    14,450,000 
      Total Short-Term Investments (cost $226,765,453)    226,765,453 
      Total Investments—99.9% (cost $458,642,3847)    $ 458,673,070 
      Other assets in excess of liabilities—0.1%    202,804 
      Net Assets Applicable to Common Shareholders—100%    $ 458,875,874 


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

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

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

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

5 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

6 Rate shown is the yield to maturity as of June 30, 2006.

7 Cost for Federal income tax purposes is $458,496,826. The net unrealized appreciation on a tax basis is $176,244, consisting of $392,373 gross unrealized appreciation and $216,129 gross unrealized depreciation.

KEY TO ABBREVIATIONS 
AMBAC 
 
American Municipal Bond Assurance Corp.  FSA    Financial Security Assurance 
COP 
 
Certificate of Participation  GO    General Obligation 
ETM 
 
Escrowed to Maturity  MBIA    Municipal Bond Insurance Assoc. 
FGIC 
 
Financial Guaranty Insurance Co.  PSF    Public School Fund Guaranteed 
FRWD 
 
Floating Rate Weekly Demand  RB    Revenue Bond 

See Notes to Financial Statements.

37


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Strategic Municipal Trust (BSD)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        LONG-TERM INVESTMENTS—154.3%         
        Alabama—9.9%         
AAA    $      320    Birmingham Wtr. Wks. & Swr. Brd. RB, Ser. A, 4.50%, 1/01/35, FSA    01/16 @ 100    $      303,274 
Baa3    3,000    Courtland Ind. Dev. Brd., PCRB, Champion Intl. Corp. Proj., Ser. A, 6.70%, 11/01/29    11/09 @ 101    3,184,140 
AA    7,000    Pub. Sch. & Coll. Auth. Cap. Impvt. RB, Ser. C, 5.75%, 7/01/18    07/09 @ 101.5    7,447,090 
                10,934,504 
        Arizona—1.8%         
AA    1,165    Salt River RB, Salt River Agricultural Impvt. & Pwr. Dist. Elec. Proj., Ser. A, 5.00%, 1/01/37    01/16 @ 100    1,190,595 
        San. Luis Fac. Dev. Corp. RB, Regl. Detention Ctr. Proj.,         
NR    210       6.25%, 5/01/15    05/10 @ 107    208,610 
NR    210       7.00%, 5/01/20    05/10 @ 107    208,181 
NR    420       7.25%, 5/01/27    05/10 @ 107    419,824 
                2,027,210 
        California—14.7%         
        California Cnty. Tobacco RB,         
BBB-    585       Ser. B, Zero Coupon, 6/01/46    06/16 @ 17.602    48,660 
BB    3,095       Ser. C, Zero Coupon, 6/01/55    06/16 @ 8.9    115,970 
NR    3,955       Ser. D, Zero Coupon, 6/01/55    06/16 @ 6.219    99,231 
AAA    5,000    California GO, 5.00%, 3/01/33    03/15 @ 100    5,066,300 
AAA    4,295    Golden St. Tobacco Sec. Corp. RB, 5.00%, 6/01/45, AMBAC    06/15 @ 100    4,319,310 
AA-    1,835    Univ. of California RB, Ser. B, 4.75%, 5/15/38    No Opt. Call    1,773,509 
AAA    5,000    West Valley-Mission Cmnty. Coll. Dist., Election 2004 A GO, 4.75%, 8/01/30, FSA    No Opt. Call    4,922,300 
                16,345,280 
        Colorado—3.0%         
AAA    10,000    Northwest Pkwy. Pub. Hwy. Auth. RB, Ser. B, Zero Coupon, 6/15/30, FSA    06/11 @ 31.387    2,469,300 
Baa2    440    Park Creek Met. Dist. Ppty. Tax RB, 5.50%, 12/01/37    12/15 @ 101    445,957 
AAA    445    Springs Co. Utils. RB, Ser. C, 5.00%, 11/15/45, FSA    11/15 @ 100    449,281 
                3,364,538 
        Connecticut—8.7%         
        Mashantucket Western Pequot Tribe Spec. RB,         
Baa3    1,5003      Ser. A, 5.50%, 9/01/28    09/09 @ 101    1,527,120 
Baa3    8,0003      Ser. B, 5.75%, 9/01/27    09/07 @ 102    8,168,800 
                9,695,920 
        Florida—14.4%         
NR    1,730    Arborwood Cmnty. Dev. Dist. SA, Master Infrastructure Proj., Ser. B, 5.10%, 5/01/14    No Opt. Call    1,721,022 
BBB+    1,050    Halifax Hosp. Med. Ctr. RB, Ser. A, 5.00%, 6/01/38    06/16 @ 100    1,022,196 
NR    3,300    Hillsborough Cnty. Ind. Dev. Auth. RB, Nat. Gypsum Proj., Ser. A, 7.125%, 4/01/30    10/10 @ 101    3,583,338 
AAA    530    JEA Wtr. & Swr. Sys. RB, Ser. A, 4.75%, 10/01/36, MBIA    04/11 @ 100    513,432 
BB+    2,045    Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21    11/14 @ 100    2,268,498 
AAA    5,265    Orange Cnty. Tourist Dev. Tax RB, 4.75%, 10/01/32, XLCA    10/16 @ 100    5,171,599 
NR    1,630    Sumter Landing Cmnty. Dev. Dist. RB, Ser B, 5.70%, 10/01/38    10/15 @ 100    1,609,152 
                15,889,237 
        Illinois—10.0%         
NR    8503   Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23    No Opt. Call    845,469 
AAA    5204   Chicago Brd. of Ed. Sch. Reform GO, 5.75%, 12/01/07, AMBAC    N/A    544,227 
AA+    5,000    Edl. Fac. Auth. RB, Northwestern Univ. Proj., 5.00%, 12/01/33    12/13 @ 100    5,086,400 
        Fin. Auth. RB,         
BB+    295       Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37    02/15 @ 100    294,802 
Baa2    375       Student Hsg., MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35    06/14 @ 100    373,313 
Baa3    300       Student Hsg., MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35    06/14 @ 100    298,578 
AAA    1,740    Mun. Elec. Pwr. Sply. RB, 4.50%, 2/01/35, FGIC    02/16 @ 100    1,628,449 
AAA    1,000    O’Hare Intl. Arpt. RB, Ser. A, 5.00%, 1/01/30, MBIA    01/15 @ 100    1,015,890 
AAA    1,000    Vlg. of Bolingbrook GO, Ser. A, 4.75%, 1/01/38, MBIA    01/15 @ 100    974,480 
                11,061,608 
        Indiana—1.1%         
AAA    1,325    Mun. Pwr. Sply. Sys. RB, Ser. A, 4.50%, 1/01/32, AMBAC    01/16 @ 100    1,246,480 

See Notes to Financial Statements.

38


BlackRock Strategic Municipal Trust (BSD) (continued)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
 
Provisions2 
             Value 
 
        Kentucky—11.9%         
AAA    $     32,345    Econ. Dev. Fin. Sys. RB, Norton Hlth. Care, Inc. Proj., Ser. B, Zero Coupon, 10/01/24, MBIA    No Opt. Call    $      13,236,544 
        Louisiana—4.3%         
AAA    4,700    St. Gas & Fuels Tax RB, Ser. A, 5.00%, 5/01/35, FGIC    05/15 @ 100    4,773,367 
        Massachusetts—1.1%         
AA    1,235    St. Wtr. Res. Auth. Gen. RB, Ser. A, 5.00%, 8/01/41    08/16 @ 100    1,255,489 
        Michigan—3.2%         
AAA    2,0004   Hosp. Fin. Auth. RB, Mercy Hlth. Svcs., 5.75%, 8/15/09, MBIA    N/A    2,119,540 
        St. Hosp. Fin. Auth. RB, Henry Ford Hlth. Sys. Proj.,         
A1    730       Ser. A, 5.00%, 11/15/38    11/16 @ 100    731,124 
A1    730       Ser. A, 5.25%, 11/15/46    11/16 @ 100    742,206 
                3,592,870 
        Missouri—4.3%         
A2    2,0004   Hlth. & Edl. Facs. Auth., Hlth. Facs. RB, St. Anthony’s Med. Ctr. Proj., 6.125%, 12/01/10    N/A    2,190,120 
AAA    2,620    Joint Mun. Elec. Util. Comm. RB, Plum Point Proj., 4.60%, 1/01/36, MBIA    01/16 @ 100    2,537,784 
                4,727,904 
        Multi-State—5.8%         
Baa1    2,0003   Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/10    No Opt. Call    2,212,940 
A3    4,0003   MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49    06/09 @ 100    4,253,240 
                6,466,180 
        Nebraska—1.0%         
AA    1,205    Omaha Pub. Pwr. Dist. Elec. Sys. RB, Ser. A, 4.75%, 2/01/44    02/14 @ 100    1,152,173 
        New Jersey—0.6%         
NR    645    Middlesex Cnty. Impvt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37    01/15 @ 100    650,992 
        New York—16.2%         
NR    315    Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35    05/15 @ 102    291,504 
AAA    840    Convention Ctr. Dev. RB, Hotel Unit Fee Secured, 5.00%, 11/15/44, AMBAC    11/15 @ 100    849,971 
AA-    6,830    Liberty Dev. Corp. RB, 5.25%, 10/01/35    No Opt. Call    7,265,071 
Aa1    2,500    Mtg. Agcy. Homeowner Mtg. RB, Ser. 85, 5.70%, 10/01/17    09/09 @ 100    2,597,375 
B    6,000    New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31    08/16 @ 101    6,936,240 
                17,940,161 
        Ohio—5.5%         
AAA    6,265    Air Qual. Dev. Auth. RB, 4.80%, 1/01/34, FGIC    07/15 @ 100    6,087,951 
        Oklahoma—1.2%         
B    1,225    Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35    No Opt. Call    1,351,493 
        Pennsylvania—7.6%         
        Econ. Dev. Fin. Auth. RB,         
A3    700       Amtrak Proj., Ser. A, 6.125%, 11/01/21    05/11 @ 101    742,210 
A3    1,0005      Amtrak Proj., Ser. A, 6.25%, 11/01/31    05/11 @ 101    1,066,050 
A3    1,000       Amtrak Proj., Ser. A, 6.50%, 11/01/16    05/11 @ 101    1,078,900 
NR6    1,000       Amtrak Proj., Ser. G, 5.125%, 12/01/15    No Opt. Call    972,350 
BB-    3,555       Exempt Facs., Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36    12/09 @ 103    3,802,606 
AAA    720    Washington Cnty. Auth. RB, Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29    No Opt. Call    766,375 
                8,428,491 
        South Carolina—2.6%         
        Jobs Econ. Dev. Auth. Hosp. Facs. RB, Palmetto Hlth. Proj.,         
BBB+    2,2254      Ser. C, 7.00%, 8/01/13    N/A    2,602,560 
BBB+    275       Ser. C, 7.00%, 8/01/30    08/13 @ 100    312,837 
                2,915,397 
        Tennessee—1.9%         
AAA    2,000    Memphis Shelby Cnty. Arpt. Auth. RB, Ser. D, 6.00%, 3/01/24, AMBAC    03/10 @ 101    2,105,820 

See Notes to Financial Statements.

39


BlackRock Strategic Municipal Trust (BSD) (continued)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        Texas—18.4%         
BBB    $      575    Alliance Arpt. Auth., Inc. Spl. Fac. RB, Fedex Corp. Proj., 4.85%, 4/01/21    04/16 @ 100    $      561,936 
AAA    4,750    Harris Cnty. Houston Sports Auth. RB, Ser. A, Zero Coupon, 11/15/38, MBIA    11/30 @ 61.166    793,488 
AAA    5,000    Humble Indpt. Sch. Dist. Sch. Bldg. GO, Ser. B, 5.00%, 2/15/30, FGIC    02/15 @ 100    5,087,250 
AAA    4,060    La Joya Indpt. Sch. Dist. GO, 5.00%, 2/15/34, PSF    02/14 @ 100    4,098,164 
AAA    1,500    Lower Colorado River Auth. RB, Ser. A, 5.50%, 5/15/21, AMBAC    05/09 @ 101    1,568,550 
AAA    295    Montgomery Cnty. Mun. Util. Dist. No. 46, Wtrwks & Swr. Sys. GO, 4.75%, 3/01/30, MBIA    03/14 @ 100    287,616 
AAA    1,000    Pearland GO, 4.75%, 3/01/29, FGIC    03/16 @ 100    984,930 
        Tpke. Auth., Central Sys. RB,         
AAA    15,000       Zero Coupon, 8/15/31, AMBAC    08/12 @ 32.807    3,625,500 
AAA    2,900       Ser. A, 5.00%, 8/15/42, AMBAC    08/12 @ 100    2,910,440 
AA+    500    Wtr. Fin. Asst. GO, 5.75%, 8/01/22    08/10 @ 100    530,040 
                20,447,914 
        Utah—3.8%         
        Intermountain Pwr. Agcy. RB,         
AAA    2,675       5.75%, 7/01/19, MBIA    07/07 @ 102    2,776,035 
AAA    1,3254      Ser. B, 5.75%, 7/01/07, MBIA    N/A    1,376,489 
                4,152,524 
        Washington—1.0%         
AAA    1,160    Hlth. Care Facs. Auth. RB, Providence Hlth. Care Svcs. Proj., Ser. A, 4.625%, 10/01/34, FGIC    10/16 @ 100    1,087,825 
        Wisconsin—0.3%         
AAA    365    Pub. Pwr, Inc. Sys. RB, Ser. A, 5.00%, 7/01/37, AMBAC    No Opt. Call    370,541 
        Total Long-Term Investments (cost $163,853,190)        171,308,413 
        SHORT-TERM INVESTMENTS—1.0%         
        Ohio—0.9%         
A-1+    1,0007   St. Univ. Gen. Rcpts. RB, Ser. B, 3.90%, 7/05/06, FRWD    N/A    1,000,000 
        Tennessee—0.1%         
VMIG1    907   Montgomery Cnty. Pub. Bldg. Auth. RB, 4.05%, 7/03/06, FRDD    N/A    90,000 
        Total Short-Term Investments (cost $1,090,000)        1,090,000 
        Total Investments—155.3% (cost $164,943,1908)        $ 172,398,413 
        Other assets in excess of liabilities—0.6%        648,000 
        Preferred shares at redemption value, including dividends payable—(55.9)%        (62,013,483) 
        Net Assets Applicable to Common Shareholders—100%        $ 111,032,930 


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

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

3 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2006, the Trust held 15.3% of its net assets, with a current market value of $17,007,569, in securities restricted as to resale.

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

5 Security pledged as collateral.

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

7 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

8 Cost for Federal income tax purposes is $164,912,212. The net unrealized appreciation on a tax basis is $7,486,201, consisting of $8,881,929 gross unrealized appreciation and $1,395,728 gross unrealized depreciation.

KEY TO ABBREVIATIONS 
AMBAC  
 
American Municipal Bond Assurance Corp.    PCRB 
 
Pollution Control Revenue Bond 
FGIC    Financial Guaranty Insurance Co.    PSF 
 
Public School Fund Guaranteed 
FRDD    Floating Rate Daily Demand    RB 
 
Revenue Bond 
FRWD    Floating Rate Weekly Demand    SA 
 
Special Assessment 
FSA    Financial Security Assurance    ST 
 
Special Tax 
GO    General Obligation    TA 
 
Tax Allocation 
MBIA    Municipal Bond Insurance Assoc.    XLCA 
 
XL Capital Assurance 

See Notes to Financial Statements.

40


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock California Insured Municipal 2008 Term Trust (BFC)

 
Principal 
           
 
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
  LONG-TERM INVESTMENTS—156.9%         
 
  California—144.4%         
AAA 
 
$      2,635 
  Alameda Cnty. COP, Ser. A, 3.80%, 12/01/08, MBIA    No Opt. Call    $      2,639,137 
 
  Anaheim Union High Sch. Dist. GO,         
AAA 
 
1,060 
     Ser. A, 3.50%, 8/01/08, FSA    No Opt. Call    1,055,166 
AAA 
 
1,250 
     Ser. A, 4.00%, 8/01/09, FSA    No Opt. Call    1,258,238 
AAA 
 
1,000 
  Burbank Elec. RB, 3.50%, 6/01/09, MBIA    No Opt. Call    989,240 
 
  California GO,         
AAA 
 
2,000 
     5.00%, 6/01/09, MBIA    No Opt. Call    2,063,080 
AAA 
 
3,000 
     5.50%, 4/01/09, MBIA    No Opt. Call    3,127,980 
AAA 
 
3,000 
     5.50%, 2/01/10, MBIA    No Opt. Call    3,158,400 
AAA 
 
2,000 
     6.25%, 9/01/08, FGIC    No Opt. Call    2,098,560 
AAA 
 
15,000 
     6.30%, 9/01/08, MBIA    No Opt. Call    15,754,500 
AAA 
 
2,600 
  Castaic Lake Wtr. Agcy. COP, Wtr. Sys. Impvt. Proj., Ser. A, 7.25%, 8/01/10, MBIA    No Opt. Call    2,927,860 
AAA 
 
1,135 
  Chaffey Cmnty. Coll. Dist. GO, Ser. A, 3.75%, 7/01/09, FSA    No Opt. Call    1,134,364 
 
  Chula Vista COP,         
AAA 
 
1,000 
     Police Fac. Proj., 4.00%, 8/01/08, MBIA    No Opt. Call    1,005,310 
AAA 
 
1,000 
     Police Fac. Proj., 4.00%, 8/01/09, MBIA    No Opt. Call    1,006,590 
AAA 
 
5,5003
  Clovis Unified Sch. Dist. GO, Ser. B, Zero Coupon, 8/01/08, FGIC    ETM    5,079,525 
 
  Dept. of Wtr. Res. Pwr. Sply. RB,         
AAA 
 
10,000 
     Ser. A, 3.125%, 5/01/08, FSA    No Opt. Call    9,831,200 
AAA 
 
10,000 
     Ser. A, 3.375%, 5/01/09, MBIA    No Opt. Call    9,809,900 
AAA 
 
1,000 
  Dept. of Wtr. Res. Wtr. RB, Central Valley Proj., Ser. Z, 4.00%, 12/01/09, FGIC    No Opt. Call    1,006,620 
AAA 
 
1,855 
  El Paso de Robles GO, Ser. A, Zero Coupon, 8/01/09, FGIC    No Opt. Call    1,644,643 
AAA 
 
4,025 
  Elsinore Valley Mun. Wtr. Dist. COP, Ser. A, 6.00%, 7/01/09, FGIC    No Opt. Call    4,264,568 
AAA 
 
1,055 
  Glendale Unified Sch. Dist. GO, Ser. D, 3.50%, 9/01/09, MBIA    No Opt. Call    1,042,762 
AAA 
 
2,000 
  Hlth. Facs. Fin. Auth. RB, Sutter Hlth. Care Sys. Proj., 5.70%, 8/15/09, MBIA    08/06 @ 102    2,043,780 
 
  Long Beach Brd. of Fin. Auth. TA, Redev. Proj.,         
AAA 
 
1,245 
     3.50%, 8/01/08, AMBAC    No Opt. Call    1,232,998 
AAA 
 
1,120 
     3.75%, 8/01/09, AMBAC    No Opt. Call    1,116,125 
AAA 
 
4,405 
  Los Angeles Cnty. Met. Trans. Auth. RB, Spl. Benefit Assmt. Dist A1 Proj.,         
 
     3.75%, 9/01/08, AMBAC    No Opt. Call    4,406,630 
AAA 
 
9,835 
  Los Angeles Cnty. San. Dist. Fin. Auth. RB, Ser. A, 4.00%, 10/01/09, FSA    No Opt. Call    9,887,912 
 
  Los Angeles Cnty. Asset Leasing Corp. RB,         
AAA 
 
2,910 
     3.80%, 12/01/07, AMBAC    No Opt. Call    2,994,972 
AAA 
 
8,090 
     3.85%, 12/01/08, AMBAC    No Opt. Call    8,498,464 
AAA 
 
8,600 
     4.05%, 12/01/09, AMBAC    No Opt. Call    9,200,452 
AAA 
 
6,000 
  Los Angeles Dept. of Arpts. RB, LA Intl. Arpt. Proj., Ser. B, 5.00%, 5/15/09, MBIA    No Opt. Call    6,189,720 
AAA 
 
13,110 
  Los Angeles GO, Ser. A, 3.50%, 9/01/09, MBIA    No Opt. Call    12,957,924 
AAA 
 
3,860 
  Los Angeles San. Equip. RB, Ser. A, 3.625%, 2/01/09, FSA    No Opt. Call    3,841,665 
 
  Los Angeles Unified Sch. Dist.,         
AAA 
 
2,6603
     COP, Ser. B, 3.00%, 10/01/08, FSA    ETM    2,599,006 
AAA 
 
7,500 
     GO, Ser. F, 3.00%, 7/01/09, FSA    No Opt. Call    7,258,875 
AAA 
 
1,000 
  Mount Diablo Unified Sch. Dist. GO, 3.50%, 8/01/08, FSA    No Opt. Call    995,440 
AAA 
 
1,000 
  Orange Cnty. Local Trans. Auth. Sales Tax RB, 6.00%, 2/15/09, MBIA    No Opt. Call    1,053,590 
AAA 
 
2,4953
  Pasadena Unified Sch. Dist. GO, Ser. C, 3.50%, 11/01/08, FSA    ETM    2,476,263 
AAA 
 
2,100 
  Pub. Wks. Brd. RB, Energy Efficiency Proj., Ser. A, 5.625%, 10/01/08, AMBAC    07/06 @ 102    2,143,827 
AAA 
 
3,3453
  Sacramento City Fin. Auth. RB, City Hall & Redev. Projs., Ser. A, 3.50%, 12/01/08, FSA    ETM    3,319,110 
AAA 
 
1,000 
  Sacramento City Unified Sch. Dist. GO, 3.50%, 7/01/09, FGIC    No Opt. Call    988,990 
 
  Sacramento Mun. Util. Dist. Elec. RB,         
AAA 
 
8253
     Ser. C, 5.75%, 11/15/07, MBIA    ETM    825,998 
AAA 
 
3,7503
     Ser. C, 5.75%, 11/15/08, FGIC    ETM    3,754,575 
AAA 
 
3,9503
     Ser. C, 5.75%, 11/15/09, MBIA    ETM    3,954,780 
AAA 
 
5,0003
  San Bernardino Cnty. Trans. Auth. Sales Tax RB, 6.00%, 3/01/10, FGIC    ETM    5,201,650 
 
  San Diego Cnty. COP,         
AAA 
 
2,360 
     5.00%, 2/01/09, AMBAC    No Opt. Call    2,427,472 
AAA 
 
11,000 
     5.625%, 9/01/12, AMBAC    No Opt. Call    11,553,300 
 
  San Diego Cnty. Regl. Trans. Comm. Sales Tax RB,         
AAA 
 
7,8303
     Ser. A, 6.00%, 4/01/08, MBIA    ETM    8,039,766 
AAA 
 
2,5003
     Ser. A, 6.00%, 4/01/08, FGIC    ETM    2,566,975 

See Notes to Financial Statements.

41


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

   
Principal 
           
   
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
   
  California—(cont’d)         
AAA   
$     12,725 
  San Diego Pub. Facs. Fin. Auth. Wtr. RB, 3.00%, 8/01/09, MBIA    No Opt. Call    $     12,315,891 
AAA   
1,250 
  San Francisco City & Cnty. GO, 4.00%, 6/15/09, FSA    No Opt. Call    1,257,913 
AAA   
1,0003
  San Jose Redev. Agcy. TA, 4.00%, 8/01/09, MBIA    ETM    1,006,010 
AAA   
1,000 
  San Mateo Cnty. Cmnty. Coll. Dist. GO, Ser. A, 3.30%, 9/01/08, FGIC    No Opt. Call    987,130 
   
  Santa Ana Unified Sch. Dist. GO,         
AAA   
1,000 
     Ser. B, Zero Coupon, 8/01/08, FGIC    No Opt. Call    923,180 
AAA   
2,000 
     Ser. B, Zero Coupon, 8/01/09, FGIC    No Opt. Call    1,773,200 
AAA   
4,030 
  Santa Barbara Cnty. Local Transp. Auth. Sales Tax RB, 3.00%, 3/15/09, FSA    No Opt. Call    3,914,742 
AAA   
2,470 
  Santa Clara COP, Ser. B, 3.50%, 2/01/09, AMBAC    No Opt. Call    2,446,214 
AAA   
4,620 
  Santa Clara Valley Wtr. Dist. COP, 4.00%, 2/01/09, FGIC    No Opt. Call    4,645,687 
AAA   
4,665 
  So. Coast Air Qual. Mgmt. Dist. Bldg. Corp. RB, 4.00%, 8/01/09, AMBAC    No Opt. Call    4,695,742 
   
  Univ. of California RB,         
AAA   
2,500 
     Ser. A, 5.00%, 5/15/09, AMBAC    No Opt. Call    2,582,475 
AAA   
2,0004
     Ser. F, 5.00%, 9/01/06, FGIC    N/A    2,023,800 
   
          230,999,886 
   
  Puerto Rico—12.5%         
   
  Elec. Pwr. Auth. RB,         
AAA   
5,280 
     Ser. DD, 5.00%, 7/01/09, FSA    07/08 @ 101.5    5,452,709 
AAA   
7,000 
     Ser. DD, 5.00%, 7/01/10, FSA    07/08 @ 101.5    7,247,100 
AAA   
3,000 
     Ser. KK, 4.50%, 7/01/09, XLCA    No Opt. Call    3,051,960 
AAA   
4,000 
  Mun. Fin. Agcy. GO, Ser. A, 5.625%, 8/01/10, FSA    08/09 @ 101    4,242,760 
   
          19,994,529 
   
  Total Long-Term Investments (cost $248,856,451)        250,994,415 
   
  SHORT-TERM INVESTMENTS—6.7%         
   
  California—6.6%         
A-1+   
5,0005
  Dept. of Wtr. Res. Pwr. Sply. RB, Ser. B-2, 4.00%, 7/03/06, FRDD    N/A    5,000,000 
A-1+   
1,5005
  Orange Cnty. San. Dist. COP, Ser. A, 3.92%, 7/03/06, FRDD    N/A    1,500,000 
A-1+   
4,0005
  Vacaville Multi-Fam. Mtg. RB, Quail Run Proj., Ser. A, 3.92%, 7/05/06, FRWD    N/A    4,000,000 
   
          10,500,000 
   
Shares 
           
   
(000) 
           
   
  Money Market Fund—0.1%         
NR   
150 
  AIM Tax Free Investment Co. Cash Reserve Portfolio    N/A    150,000 
   
  Total Short-Term Investments (cost $10,650,000)        10,650,000 
   
  Total Investments—163.6% (cost $259,506,4516)        $  261,644,415 
   
  Other assets in excess of liabilities—1.8%        2,896,416 
   
  Preferred shares at redemption value, including dividends payable—(65.4)%       
(104,593,465)
   
  Net Assets Applicable to Common Shareholders—100%        $  159,947,366 


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

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

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

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

5 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

6 Cost for Federal income tax purposes is $258,738,599. The net unrealized appreciation on a tax basis is $2,905,816, consisting of $5,389,622 gross unrealized appreciation and $2,483,806 gross unrealized depreciation.

The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 96.2% of the Trust’s managed assets:

AMBAC 
 
20.4% 
FGIC 
 
14.1% 
FSA 
 
25.2% 
MBIA 
 
35.2% 
XCLA 
 
1.2% 
Other 
 
0.1% 

See Notes to Financial Statements.

42


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

KEY TO ABBREVIATIONS 
AMBAC  
 
American Municipal Bond Assurance Corp.    FSA 
 
Financial Security Assurance 
COP    Certificate of Participation    GO 
 
General Obligation 
ETM    Escrowed to Maturity    MBIA 
 
Municipal Bond Insurance Assoc. 
FGIC    Financial Guaranty Insurance Co.    RB 
 
Revenue Bond 
FRDD    Floating Rate Daily Demand    TA 
 
Tax Allocation 
FRWD    Floating Rate Weekly Demand    XLCA 
 
XL Capital Assurance 

See Notes to Financial Statements.

43


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock California Municipal 2018 Term Trust (BJZ)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        LONG-TERM INVESTMENTS—146.0%         
        California—115.8%         
BBB+    $      2,100    ABAG Fin. Auth. for Nonprofit Corps. RB, San Diego Hosp. Assoc. Proj., Ser. C, 5.375%, 3/01/21    03/14 @ 100    $      2,142,735 
        California GO,         
A+    5,000       5.00%, 11/01/20    No Opt. Call    5,112,050 
AAA    6,500       Ser. BZ, 5.35%, 12/01/21, MBIA    No Opt. Call    6,652,165 
AAA    7,500    Clovis Unified Sch. Dist. Cap. Apprec. Election 2004 GO, Ser. A, Zero Coupon, 8/01/21, FGIC    No Opt. Call    3,648,150 
A   
6,5003
,4 Dept. of Wtr. Res. Pwr. Sply. RB, Ser. A, 5.125%, 5/01/12    N/A    6,969,560 
AAA    3,395    Fontana Pub. Fin. Auth. RB, Fontana Redev. Proj., Ser. A, 5.25%, 9/01/18, FSA    No Opt. Call    3,589,092 
BBB    20,000    Foothill/Eastern Corridor Agcy. Toll Rd. Cap. Apprec. RB, Zero Coupon, 1/15/21    01/10 @ 53.346    8,519,400 
        Hlth. Fac. Fin. Auth. RB, Adventist Hlth. Sys. Proj.,         
A    1,075       Ser. A, 5.00%, 3/01/18    No Opt. Call    1,097,489 
A    1,000       Ser. A, 5.00%, 3/01/19    No Opt. Call    1,016,910 
A    2,060       Ser. A, 5.00%, 3/01/20    No Opt. Call    2,086,615 
A    1,355       Ser. A, 5.00%, 3/01/24    No Opt. Call    1,367,127 
        Infrastructure & Econ. Dev. RB,         
A    1,985       J. David Gladstone Inst. Proj., 5.50%, 10/01/20    No Opt. Call    2,078,553 
A+    6,500       Kaiser Hosp. Asst. LLC Proj., Ser. A, 5.55%, 8/01/31    No Opt. Call    6,769,295 
        Lathrop Fin. Auth. RB, Wtr. Sply. Proj.,         
NR    995       5.80%, 6/01/21    No Opt. Call    1,034,332 
NR    1,040       5.85%, 6/01/22    No Opt. Call    1,082,328 
NR    1,000       5.90%, 6/01/23    No Opt. Call    1,041,870 
AAA    5,000    Long Beach Harbor Dept. RB, Ser. A, 5.25%, 5/15/18, FGIC    No Opt. Call    5,194,900 
        Los Angeles Cnty. Pub. Wks. RB, Regl. Park Proj.,         
AA    3,2203      Ser. A, 5.00%, 10/01/07    N/A    3,302,303 
AA    1,780       Ser. A, 5.00%, 10/01/19    No Opt. Call    1,819,836 
AAA    10,025    Los Angeles Habor Dept. RB, Ser. B, 5.50%, 8/01/21, AMBAC    No Opt. Call    10,520,837 
A2    3,100    Poll. Ctrl. Fin. Auth. Poll. Ctrl. RB, San Diego Gas & Elec. Proj., Ser. A, 5.90%, 6/01/14    No Opt. Call    3,381,480 
        Poll. Ctrl. Fin. Auth. Sld. Wst. Disp. RB, Republic Svcs., Inc. Proj.,         
BBB+    2,500       Ser. B, 5.25%, 6/01/23    No Opt. Call    2,573,200 
BBB+    2,500       Ser. C, 5.25%, 6/01/23    No Opt. Call    2,573,200 
BBB    4,000    Poll. Ctrl. RB, Sld. Wst. Mgmt., Inc. Proj., Ser. A, 5.125%, 7/01/31    06/06 @ 100    4,083,640 
        Pub. Wks. Brd. RB,         
A    2,020       California Cmnty. Coll. Proj., Ser. A, 5.00%, 12/01/17    No Opt. Call    2,064,076 
A    2,415       California St. Univ. Proj., Ser. A, 5.00%, 10/01/17    No Opt. Call    2,476,124 
AAA    5,000    Riverside Unified Sch. Dist. GO, Ser. A, 5.25%, 2/01/23, FGIC    No Opt. Call    5,266,250 
        San Bernardino Cnty. Cmnty. Facs. ST,         
NR    105       5.35%, 9/01/17    No Opt. Call    107,590 
NR    245       5.50%, 9/01/18    No Opt. Call    252,656 
NR    500       5.60%, 9/01/19    No Opt. Call    517,245 
NR    355       5.70%, 9/01/20    No Opt. Call    368,629 
AAA    2,980    San Diego Cnty. COP, 5.25%, 11/01/19, AMBAC    No Opt. Call    3,131,950 
AAA    2,135    Santa Clara Valley Transp. Auth. Sales Tax RB, Ser. A, 5.00%, 6/01/18, MBIA    No Opt. Call    2,243,672 
BBB+    5,000    Statewide Cmntys. RB, Dev. Daughters of Charity Hlth. Proj., Ser. A, 5.25%, 7/01/24    No Opt. Call    5,111,350 
AAA    4,590    Stockton East Wtr. Dist. COP, Ser. B, Zero Coupon, 4/01/19, FGIC    No Opt. Call    2,292,981 
                111,489,590 
        Multi-State—9.9%         
A3    4,0005   Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/09    No Opt. Call    4,225,640 
A3    5,0005   MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49    06/09 @ 100    5,316,550 
                9,542,190 
        Puerto Rico—13.2%         
BBB    4,410    Pub. Bldgs. Auth. Gov’t. Facs. RB, Ser. C, 5.75%, 7/01/19    No Opt. Call    4,802,446 
Aaa    7,5003   Pub. Fin. Corp. RB, Ser. E, 5.70%, 2/01/10    N/A    7,935,300 
                12,737,746 
        Trust Territories—4.1%         
A    4,0005    San Manuel Entertainment Auth. RB, 2004 Gaming Proj., Ser. C, 4.50%, 12/01/16    12/13 @ 102    3,918,160 

See Notes to Financial Statements.

44


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

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        U.S. Virgin Islands—3.0%         
        Pub. Fin. Auth. RB, Sen. Lien Matching Fund Loan,         
BBB    $      360       Ser. A, 5.25%, 10/01/17    10/14 @ 100    $         372,622 
BBB    455       Ser. A, 5.25%, 10/01/19    No Opt. Call    468,136 
BBB    460       Ser. A, 5.25%, 10/01/21    No Opt. Call    471,394 
BBB    315       Ser. A, 5.25%, 10/01/22    No Opt. Call    322,160 
BBB    960       Ser. A, 5.25%, 10/01/23    No Opt. Call    980,515 
BBB    300       Ser. A, 5.25%, 10/01/24    No Opt. Call    305,598 
                2,920,425 
        Total Long-Term Investments (cost $137,384,601)        140,608,111 
        SHORT-TERM INVESTMENTS—9.4%         
        California—7.2%         
        Econ. Recovery RB,         
A-1+    4006      Ser. C-4, 3.93%, 7/03/06, FRDD    N/A    400,000 
A-1+    1,7006      Ser. C-5, 3.88%, 7/03/06, FRDD    N/A    1,700,000 
A-1+    2,3506   Newport Beach RB, Hoag Mem. Presbyterian Hosp. Proj., 3.88%, 7/03/06, FRDD    N/A    2,350,000 
A-1+    2,5006   Riverside Unified Sch. Dist. COP, 3.90%, 7/04/06, FRWD    N/A    2,500,000 
                6,950,000 
        Pennsylvania—1.8%         
A-1+    1,7006   Delaware Cnty. PCRB, Exelon Proj., 4.05%, 7/03/06, FRDD    N/A    1,700,000 
   
Shares 
           
   
(000) 
           
        Money Market Fund—0.4%         
NR    350    AIM Tax Free Investment Co. Cash Reserve Portfolio    N/A    350,000 
        Total Short-Term Investments (cost $9,000,000)        9,000,000 
        Total Investments—155.4% (cost $146,384,6017)        $ 149,608,111 
        Other assets in excess of liabilities—2.3%        2,254,224 
        Preferred shares at redemption value, including dividends payable—(57.7)%        (55,545,634)
        Net Assets Applicable to Common Shareholders—100%        $   96,316,701 


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

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

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

4 Security pledged as collateral.

5 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2006, the Trust held 14.0% of its net assets, with a current market value of $13,460,350, in securities restricted as to resale.

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. Rate shown is rate as of June 30, 2006.

7 Cost for Federal income tax purposes is $146,383,380. The net unrealized appreciation on a tax basis is $3,224,731, consisting of $3,783,105 gross unrealized appreciation and $558,374 gross unrealized depreciation.

KEY TO ABBREVIATIONS 
AMBAC 
 
American Municipal Bond Assurance Corp.    GO    General Obligation 
COP    Certificate of Participation    MBIA    Municipal Bond Insurance Assoc. 
FGIC    Financial Guaranty Insurance Co.    PCRB    Pollution Control Revenue Bond 
FRDD    Floating Rate Daily Demand    RB    Revenue Bond 
FRWD    Floating Rate Weekly Demand    ST    Special Tax 
FSA    Financial Security Assurance         

See Notes to Financial Statements.

45


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

  Principal             
  Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
      LONG-TERM INVESTMENTS—139.8%         
      Florida—121.4%         
AAA 
  $      1,500    Alachua Cnty. Sch. Dist. GO, 4.25%, 1/01/09, FSA    No Opt. Call    $      1,513,380 
AAA 
  8,720    Brd. of Ed. GO, 3.50%, 1/01/09, FSA    No Opt. Call    8,608,820 
AAA 
  4,190    Brd. of Ed. Lottery RB, Ser. A, 5.00%, 7/01/08, FGIC    No Opt. Call    4,282,054 
AAA 
  1,765    Collier Cnty. Sch. Brd. COP, Ser. A, 3.50%, 2/15/09, FSA    No Opt. Call    1,744,579 
      Dade Cnty. RB,         
AAA 
  5,000       Ser. A, Zero Coupon, 2/01/08, MBIA    07/06 @ 95.522    4,716,800 
AAA 
  9053      Ser. B, Zero Coupon, 10/01/08, AMBAC    ETM    829,568 
AAA 
  1,095       Ser. B, Zero Coupon, 10/01/08, AMBAC    No Opt. Call    999,779 
AAA 
  1,515    Delray Beach GO, Decade of Excellence Prog. Proj., 3.50%, 2/01/09, FSA    No Opt. Call    1,495,063 
      Dept. of Env. Protection Presvtn. RB,         
AAA 
  5,905       Ser. B, 4.00%, 7/01/08, FGIC    No Opt. Call    5,922,892 
AAA 
  6,140       Ser. B, 4.00%, 7/01/09, FGIC    No Opt. Call    6,162,288 
      Div. of Bond Fin. Dept. Gen. Svc. RB,         
AAA 
  8,000       Dept. of Env. Presvtn. Proj., Ser. B, 5.25%, 7/01/10, FSA    07/08 @ 101    8,276,960 
AAA 
  2,000       Nat. Res. & Presvtn. Proj., Ser. A, 5.00%, 7/01/11, AMBAC    07/07 @ 101    2,041,880 
      Escambia Cnty. Util. Sys. RB,         
AAA 
  1,595       Ser. B, 6.125%, 1/01/09, FGIC    No Opt. Call    1,642,180 
AAA 
  5,235       Ser. B, 6.25%, 1/01/12, FGIC    No Opt. Call    5,780,225 
AAA 
  5,060       Ser. B, 6.25%, 1/01/13, FGIC    No Opt. Call    5,655,764 
AAA 
  6,000    Greater Orlando Aviation Auth. RB, Orlando Arpt. Facs. Proj., Ser. C, 3.50%, 10/01/08, MBIA    No Opt. Call    5,936,400 
AAA 
  3,000    Hillsborough Cnty. Sch. Dist. Sales Tax RB, 4.00%, 10/01/09, AMBAC    No Opt. Call    3,011,610 
AAA 
  10,000    Hillsborough Cnty. Util. RB, 4.50%, 8/01/08, AMBAC    No Opt. Call    10,129,800 
      Indian River Cnty. Sch. Dist. GO,         
AAA 
  950       3.25%, 4/01/08, FSA    No Opt. Call    936,539 
AAA 
  1,000       3.25%, 4/01/09, FSA    No Opt. Call    977,860 
AAA 
  1,100    Jacksonville Beach Utils. RB, 3.10%, 4/01/09, AMBAC    No Opt. Call    1,068,815 
AAA 
  5,895    Jacksonville Excise Tax RB, 4.25%, 10/01/08, AMBAC    No Opt. Call    5,946,051 
      Jacksonville Sales Tax RB,         
AAA 
  1,155       3.125%, 10/01/08, FGIC    No Opt. Call    1,129,128 
AAA 
  1,000       3.375%, 10/01/09, FGIC    No Opt. Call    978,700 
AAA 
  2,000       4.10%, 10/01/08, AMBAC    No Opt. Call    2,010,940 
AAA 
  825    Lake Cnty. Sch. Brd. COP, 3.50%, 7/01/09, AMBAC    No Opt. Call    812,411 
AAA 
  2,000    Lakeland Elec. & Wtr. RB, 5.90%, 10/01/08, FSA    No Opt. Call    2,087,340 
AAA 
  3,000    Lee Cnty. Arprt. RB, 4.25%, 10/01/09, FSA    No Opt. Call    3,035,130 
AAA 
  2,000    Miami Dade Cnty. Edl. Fac. RB, Ser. A, 4.875%, 4/01/09, AMBAC    No Opt. Call    2,051,600 
      Miami Dade Cnty. Pub. Svc. Tax Pub. Impvt. RB,         
AAA 
  1,535       3.40%, 4/01/08, AMBAC    No Opt. Call    1,518,959 
AAA 
  1,595       3.625%, 4/01/09, AMBAC    No Opt. Call    1,580,230 
AAA 
  4,775    Miami Dade Cnty. Sch. Brd. COP, 5.25%, 8/01/11, FSA    08/08 @ 101    4,941,074 
      Miami GO,         
AAA 
  1,345       5.90%, 12/01/08, FGIC    No Opt. Call    1,407,959 
AAA 
  1,000       6.00%, 12/01/09, FGIC    No Opt. Call    1,067,260 
AAA 
  1,090    Mun. Loan Council RB, Ser. C, 3.50%, 11/01/08, MBIA    No Opt. Call    1,076,201 
AAA 
  4,895    Orange Cnty. Sales Tax RB, Ser. A, 3.25%, 1/01/09, FGIC    No Opt. Call    4,790,541 
      Orange Cnty. Tourist Dev. Tax RB,         
AAA 
  5,340       Ser. A, 4.00%, 10/01/09, AMBAC    No Opt. Call    5,352,602 
AAA 
  1,0053      Ser. A, 5.85%, 10/01/08, MBIA    ETM    1,049,140 
AAA 
  495       Ser. A, 5.85%, 10/01/08, MBIA    No Opt. Call    515,552 
AAA 
  5,130    Orange Cnty. Tourist Dev. Tax. RB, Ser. A, 4.00%, 10/01/08, AMBAC    No Opt. Call    5,141,748 
      Orlando Wstwtr. Sys. RB,         
AAA 
  1,100       Ser. A, 3.25%, 10/01/08, AMBAC    No Opt. Call    1,079,650 
AAA 
  1,280       Ser. A, 3.50%, 10/01/09, AMBAC    No Opt. Call    1,259,251 
      Osceola Cnty. Gas Tax RB,         
AAA 
  640       3.10%, 4/01/08, FGIC    No Opt. Call    628,557 
AAA 
  535       3.30%, 4/01/09, FGIC    No Opt. Call    523,904 

See Notes to Financial Statements.

46


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

    Principal             
    Amount        Option Call     
Rating1 
      (000)       
Description 
  Provisions2        Value 
 
        Florida—(cont’d)         
        Osceola Cnty. RB,         
AAA    $      1,810       3.75%, 10/01/08, AMBAC    No Opt. Call    $      1,806,452 
AAA    1,535       3.875%, 10/01/09, AMBAC    No Opt. Call    1,535,154 
AAA    850    Palm Beach Cnty. Sch. Brd. COP, Ser. D, 3.30%, 8/01/09, FSA    No Opt. Call    828,087 
AAA    7,085    Pasco Cnty. Sld. Wst. Disp. & Res. Rec. Sys. RB, 6.00%, 4/01/09, FGIC    07/06 @ 100    7,093,502 
        Polk Cnty. Sch. Brd. COP,         
AAA    2,000       Ser. A, 3.20%, 1/01/08, FSA    No Opt. Call    1,973,620 
AAA    2,000       Ser. A, 3.375%, 1/01/09, FSA    No Opt. Call    1,964,580 
AAA    1,020    Sebring Wtr. & Wstwtr. RB, 3.625%, 1/01/09, FGIC    No Opt. Call    1,012,656 
AAA    2,000    Seminole Cnty. Wtr. & Swr. RB, 6.00%, 10/01/09, MBIA    No Opt. Call    2,128,260 
AAA    1,000    So. Florida Wtr. Mgmt. Dist. RB, 3.30%, 10/01/09, AMBAC    No Opt. Call    975,090 
AAA    500    St. Petersburg Hlth. Facs. Auth. RB, All Children’s Hosp. Proj., 3.10%, 11/15/08, AMBAC    No Opt. Call    486,490 
AAA    1,370    Vlg. Ctr. Cmnty. Dev. Dist. Rec. RB, Ser. A, 5.50%, 11/01/08, MBIA    No Opt. Call    1,419,923 
AAA    2,370    Volusia Cnty. Sales Tax RB, Ser. B, 4.00%, 10/01/08, MBIA    No Opt. Call    2,377,940 
                155,318,938 
        Puerto Rico—18.4%         
        Mun. Fin. Agcy.,         
AAA    1,500       GO, Ser. A, 5.625%, 8/01/10, FSA    08/09 @ 101    1,591,035 
AAA    10,000       RB, Ser. A, 3.50%, 8/01/08, FSA    No Opt. Call    9,916,100 
AAA    12,000       RB, Ser. A, 3.75%, 8/01/09, FSA    No Opt. Call    11,972,160 
                23,479,295 
        Total Long-Term Investments (cost $178,578,924)        178,798,233 
        SHORT-TERM INVESTMENTS—15.5%         
        Florida—8.0%         
A-1+    2604   Jacksonville Hlth. Facs. Hosp. RB, Variable Baptist Med. Ctr. Proj., 3.96%, 7/03/06, FRDD    N/A    260,000 
A-1   
6,0004
  Orlando & Orange Cnty. Expwy. Auth. RB, Ser. D, 3.96%, 7/06/06, FSA, FRWD    N/A    6,000,000 
A-1+   
2,9004
  Palm Beach Cnty. Sch. Brd. COP, Ser. B, 3.95%, 7/06/06, AMBAC, FRWD    N/A    2,900,000 
A-1+   
1,0004
  Pinellas Cnty. Hlth. Fac. Auth. RB, 4.04%, 7/03/06, AMBAC, FRDD    N/A    1,000,000 
                10,160,000 
        Puerto Rico—6.7%         
A-1   
6,0004
  Gov’t. Dev. Bank RB, 3.87%, 7/05/06, MBIA, FRWD    N/A    6,000,000 
A-1   
2,6004
  Hwy. & Transp. Auth. RB, Ser. A, 3.94%, 7/05/06, AMBAC, FRWD    N/A    2,600,000 
                8,600,000 
    Shares             
    (000)             
        Money Market Fund—0.8%         
NR    1,100    AIM Tax Free Investment Co. Cash Reserve Portfolio    N/A    1,100,000 
        Total Short-Term Investments (cost $19,860,000)        19,860,000 
        Total Investments—155.3% (cost $198,438,9245)        $ 198,658,233 
        Other assets in excess of liabilities—10.5%        13,422,431 
        Preferred shares at redemption value, including dividends payable—(65.8)%        (84,158,415)
        Net Assets Applicable to Common Shareholders—100%        $ 127,922,249 


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

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

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

4 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

5 Cost for Federal income tax purposes is $198,408,144. The net unrealized appreciation on a tax basis is $250,089, consisting of $1,670,920 gross unrealized appreciation and $1,420,831 gross unrealized depreciation.

See Notes to Financial Statements.

47


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

The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 94.9% of the Trust’s managed assets:

AMBAC 
 
26.8 % 
FGIC 
 
23.1 % 
FSA 
 
32.5 % 
MBIA 
 
12.0 % 
Other 
 
0.5 % 

KEY TO ABBREVIATIONS 
AMBAC 
 
American Municipal Bond Assurance Corp.    FRWD 
 
Floating Rate Weekly Demand 
COP 
 
Certificate of Participation    FSA 
 
Financial Security Assurance 
ETM 
 
Escrowed to Maturity    GO 
 
General Obligation 
FGIC 
 
Financial Guaranty Insurance Co.    MBIA 
 
Municipal Bond Insurance Assoc. 
FRDD 
 
Floating Rate Daily Demand    RB 
 
Revenue Bond 

See Notes to Financial Statements.

48


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Florida Municipal 2020 Term Trust (BFO)

    Principal             
    Amount        Option Call     
Rating1 
      (000)       
Description 
  Provisions2        Value 
 
        LONG-TERM INVESTMENTS—144.4%         
        Florida—123.8%         
NR    $      100    Brandy Creek Cmnty. Dev. Dist. SA, Ser. B, 5.40%, 5/01/09    No Opt. Call    $      99,914 
AAA   
6,1503
  Brd. of Ed. GO, Ser. J, 5.00%, 6/01/24, AMBAC    06/13 @ 101    6,323,492 
NR    4,785    Crossings at Fleming Island Cmnty. Dev. Dist. RB, 6.75%, 10/01/25    10/09 @ 102    4,905,773 
AAA    1,095    Deltona Util. Sys. RB, 5.00%, 10/01/23, MBIA    10/13 @ 100    1,128,419 
BBB    4,000    Escambia Cnty. Env. Impvt. RB, 5.75%, 11/01/27    11/13 @ 100    4,085,800 
AAA    566    Escambia Cnty. Hlth. Facs. Auth. RB, 5.95%, 7/01/20, AMBAC    No Opt. Call    608,707 
BBB+    1,955    Hillsborough Cnty. Ind. Dev. Auth. PCRB, Tampa Elec. Co. Proj., 5.50%, 10/01/23    10/12 @ 100    2,011,930 
AAA    1,000    Hillsborough Cnty. Sch. Brd. COP, 5.00%, 7/01/27, MBIA    07/13 @ 100    1,021,860 
AA    1,000    Lakeland Wtr. & Wstwtr. RB, 5.00%, 10/01/27    10/12 @ 100    1,024,130 
AAA    3,000    Lee Cnty. Transp. Fac. RB, Ser. B, 5.00%, 10/01/22, AMBAC    10/14 @ 100    3,097,920 
        Marco Island Util. Sys. RB,         
AAA    2,000       5.00%, 10/01/22, MBIA    10/13 @ 100    2,064,780 
AAA    1,375       5.00%, 10/01/23, MBIA    10/13 @ 100    1,416,965 
AAA    1,000       5.25%, 10/01/21, MBIA    10/13 @ 100    1,053,390 
BB+    2,500    Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21    11/14 @ 100    2,773,225 
AAA    4,695    Miami Dade Cnty. Edl. Facs. Auth. RB, Univ. Miami Proj., Ser. A, 5.00%, 4/01/24, AMBAC    04/14 @ 100    4,837,352 
        Miami Dade Cnty.,         
AAA    5,365       RB Ser. A, Zero Coupon, 10/01/19, MBIA    04/08 @ 55.413    2,687,168 
AAA    10,000       SO RB, Ser. A, Zero Coupon, 10/01/20, MBIA    04/08 @ 52.398    4,721,800 
AAA    7,560       SO RB, Ser. B, Zero Coupon, 10/01/32, MBIA    04/08 @ 26.494    1,789,981 
AAA    4,000    Mun. Loan Council RB, Ser. A, Zero Coupon, 4/01/20, MBIA    No Opt. Call    2,087,760 
NR    3,595    North Palm Beach Cnty. Impvt. Dist. RB, Wtr. Ctrl. & Impvt. Unit Dev. 43 Proj., 6.10%, 8/01/21 .    08/11 @ 101    3,699,615 
A+    4,450    Orange Cnty. Hlth. Facs. Auth. RB, Hosp. Adventist Hlth. Sys. Proj., 5.625%, 11/15/32    11/12 @ 101    4,671,788 
AAA    6,500    Palm Beach Cnty. Sch. Brd. COP, Ser. D, 5.00%, 8/01/28, FSA    08/12 @ 100    6,632,665 
        Palm Coast Util. Sys. RB,         
AAA    1,770       5.00%, 10/01/22, MBIA    10/13 @ 100    1,827,330 
AAA    1,485       5.00%, 10/01/23, MBIA    10/13 @ 100    1,530,322 
AAA    1,500       5.00%, 10/01/24, MBIA    10/13 @ 100    1,545,780 
AAA    2,760    Polk Cnty. Util. Sys. RB, 5.00%, 10/01/23, FGIC    10/13 @ 100    2,844,235 
NR    4,615    Sterling Hill Cmnty. Dev. Dist. SA, 6.10%, 5/01/23    05/13 @ 101    4,706,515 
NR    2,765    Stevens Plantation Impvt. Proj. RB, 6.375%, 5/01/13    No Opt. Call    2,809,710 
NR    1,220    Sumter Cnty. Indl. Dev. Auth. RB, North Sumter Util. Co. LLC Proj., 6.80%, 10/01/32    10/09 @ 100    1,263,115 
        Tohopekaliga Wtr. Auth. RB,         
AAA    3,630       Ser. A, 5.00%, 10/01/21, FSA    10/13 @ 100    3,749,863 
AAA    3,810       Ser. A, 5.00%, 10/01/22, FSA    10/13 @ 100    3,928,643 
AAA    2,000       Ser. A, 5.00%, 10/01/23, FSA    10/13 @ 100    2,061,040 
AAA    1,975       Ser. B, 5.00%, 10/01/22, FSA    10/13 @ 100    2,036,502 
AAA    1,180       Ser. B, 5.00%, 10/01/23, FSA    10/13 @ 100    1,216,014 
NR    1,740    Vlg. Cmnty. Dev. Dist. Assmt. No. 5 SA, Ser. A, 6.00%, 5/01/22    05/13 @ 101    1,800,239 
        Vlg. Ctr. Cmnty. Dev. Dist. RB,         
AAA    5,000       5.25%, 10/01/23, MBIA    10/13 @ 101    5,287,100 
BBB4   
2,0003
     Ser. B, 6.35%, 1/01/18    01/14 @ 100    2,089,420 
                101,440,262 
        Puerto Rico—20.6%         
        Children’s Trust Fund Tobacco Settlement RB,         
BBB    2,015       5.50%, 5/15/39    05/12 @ 100    2,058,867 
BBB    10,500       5.625%, 5/15/43    05/12 @ 100    10,762,290 
Aaa   
3,7405
  Pub. Fin. Corp. RB, Ser. E, 5.50%, 2/01/12    N/A    4,021,360 
                16,842,517 
        Total Long-Term Investments (cost $114,940,990)        118,282,779 
        SHORT-TERM INVESTMENTS—12.9%         
        Florida—5.1%         
A-1+    6706   Jacksonville Hlth. Facs. Hosp. RB, Variable Baptist Med. Ctr. Proj., 3.96%, 7/03/06, FRDD    N/A    670,000 
A-1+   
3,5006
  Pinellas Cnty. Hlth. Fac. Auth. RB, 4.04%, 7/03/06, AMBAC, FRDD    N/A    3,500,000 
                4,170,000 

See Notes to Financial Statements.

49


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

    Principal         
    Amount         
Rating1 
      (000)       
Description 
  Value 
        Puerto Rico—1.5%     
A-1   
$      3006
  Gov’t. Dev. Bank RB, 3.87%, 7/05/06, MBIA, FRWD    $         300,000 
A-1    9506   Hwy. & Transp. Auth. RB, Ser. A, 3.94%, 7/05/06, AMBAC, FRWD    950,000 
            1,250,000 
    Shares         
    (000)         
        Money Market Funds—6.3%     
NR   
4,050 
  AIM Tax Free Investment Co. Cash Reserve Portfolio    4,050,000 
NR   
1,100 
  SSgA Tax Free Money Mkt. Fund    1,100,000 
            5,150,000 
        Total Short-Term Investments (cost $10,570,000)    10,570,000 
        Total Investments—157.3% (cost $125,510,9907)    $ 128,852,779 
        Other assets in excess of liabilities—2.4%    2,004,783 
        Preferred shares at redemption value, including dividends payable—(59.7)%    (48,924,981)
        Net Assets Applicable to Common Shareholders—100%    $   81,932,581 


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

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

3 Security pledged as collateral.

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

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

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. Rate shown is rate as of June 30, 2006.

7 Cost for Federal income tax purposes is $125,491,390. The net unrealized appreciation on a tax basis is $3,361,389, consisting of $3,561,399 gross unrealized appreciation and $200,010 gross unrealized depreciation.

KEY TO ABBREVIATIONS 
AMBAC 
 
American Municipal Bond Assurance Corp.    GO 
 
General Obligation 
COP    Certificate of Participation    MBIA 
 
Municipal Bond Insurance Assoc. 
FGIC    Financial Guaranty Insurance Co.    PCRB 
 
Pollution Control Revenue Bond 
FRDD    Floating Rate Daily Demand    RB 
 
Revenue Bond 
FRWD    Floating Rate Weekly Demand    SA 
 
Special Assessment 
FSA    Financial Security Assurance    SO 
 
Special Obligation 

See Notes to Financial Statements.

50


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

  Principal             
  Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
      LONG-TERM INVESTMENTS—134.3%         
      New York—134.3%         
      Albany Cnty. GO,         
AAA 
  $      1,515       3.50%, 6/01/08, FGIC    No Opt. Call    $      1,505,940 
AAA 
  2,030       3.50%, 6/01/09, FGIC    No Opt. Call    2,003,346 
AAA 
  1,000    Bath Central Sch. Dist. GO, 4.00%, 6/15/08, FGIC    No Opt. Call    1,005,180 
AAA 
  2,250    Central Square Central Sch. Dist. GO, 3.75%, 5/15/09, FGIC    No Opt. Call    2,248,110 
      Dorm. Auth. RB,         
AAA 
  1,070       Hosp. Lutheran Medical Proj., 3.00%, 2/01/09, MBIA    No Opt. Call    1,034,380 
AAA 
  1,625       Sch. Dist. Fin. Proj., Ser. C, 3.50%, 10/01/08, MBIA    No Opt. Call    1,609,644 
AAA 
  2,970       Secured Hosp. Proj., 4.00%, 2/15/09, XLCA    No Opt. Call    2,974,277 
AAA 
  3,500       Secured Hosp. Proj., 5.00%, 2/15/10, MBIA    02/08 @ 101.5    3,610,880 
AAA 
  5,000       Secured Hosp. Proj., 5.125%, 2/15/09, ACA    02/08 @ 101.5    5,104,250 
AAA 
  1,600       St. Univ. Edl. Facs. Proj., Ser. A, 5.50%, 5/15/07, FGIC    No Opt. Call    1,624,304 
AAA 
  2,500       St. Univ. Edl. Facs. Proj., Ser. A, 5.50%, 5/15/08, AMBAC    No Opt. Call    2,577,250 
AAA 
  5,000       St. Univ. Edl. Facs. Proj., Ser. A, 5.50%, 5/15/08, FGIC    No Opt. Call    5,157,200 
AAA 
  6,000       St. Univ. Edl. Facs. Proj., Ser. A, 5.50%, 5/15/08, CONNIE LEE    No Opt. Call    6,188,640 
AAA 
  5,000       St. Univ. Edl. Facs. Proj., Ser. A, 5.50%, 5/15/09, AMBAC    No Opt. Call    5,221,050 
AAA 
  500       W.K. Nursing Home Proj., 5.65%, 8/01/09    08/06 @ 102    510,630 
AAA 
  1,000       Winthrop Univ. Hosp. Assoc. Proj., Ser. A, 4.125%, 7/01/08, AMBAC    No Opt. Call    1,004,440 
AAA 
  1,960    East Greenbush Central Sch. Dist. GO, Ser. C, 4.00%, 6/15/09, FSA    No Opt. Call    1,971,858 
      Elmira City Sch. Dist. GO,         
AAA 
  2,125       3.25%, 6/15/08, FGIC    No Opt. Call    2,097,460 
AAA 
  1,500       3.25%, 6/15/09, FGIC    No Opt. Call    1,469,370 
      Erie Cnty. Pub. Impvt. GO,         
AAA 
  3,825       Ser. A, 3.25%, 9/01/09, FGIC    No Opt. Call    3,722,184 
AAA 
  1,000       Ser. A, 3.75%, 10/01/08, FGIC    No Opt. Call    998,260 
AAA 
  1,185    Evans & Brant Central Sch. Dist. GO, Ser. C, 3.75%, 12/15/08, FGIC    No Opt. Call    1,185,521 
      Facs. Corp. RB,         
AAA 
  1,630       Clean Wtr. & Drinking Proj., 3.875%, 4/15/10    No Opt. Call    1,631,907 
AAA 
  6,000       Mun. Wtr. Proj., 4.00%, 6/15/09    No Opt. Call    6,033,000 
      Fayetteville-Manlius Central Sch. Dist. GO,         
AAA 
  1,125       3.75%, 6/15/09, FGIC    No Opt. Call    1,124,044 
AAA 
  1,000       4.00%, 6/15/08, FGIC    No Opt. Call    1,005,180 
AAA 
  1,500    Hempstead Twnshp. GO, Ser. B, 4.00%, 8/01/09, MBIA    No Opt. Call    1,507,290 
      Hsg. Fin. Agcy. RB, Hsg. Mtg. Proj.,         
AAA 
  1,305       Ser. A, 5.80%, 5/01/09, FSA    07/06 @ 102    1,329,534 
AAA 
  4,015       Ser. A, 5.80%, 11/01/09, FSA    07/06 @ 102    4,112,324 
AAA 
  165    Hsg. Fin. Agcy. RB, Multi-Fam. Mtg. Hsg. Proj., Ser. C, 6.30%, 8/15/08    07/06 @ 100    165,079 
AAA 
  12,500    Long Island Pwr. Auth. Elec. Sys. RB, 5.00%, 4/01/08, MBIA    No Opt. Call    12,753,250 
      Lowville Central Sch. Dist. GO,         
AAA 
  1,255       3.30%, 6/15/08, FGIC    No Opt. Call    1,240,806 
AAA 
  1,305       3.60%, 6/15/09, FGIC    No Opt. Call    1,296,752 
      Met. Transp. Auth. RB,         
AAA 
  12,000       Ser. A, 3.50%, 11/15/09, FSA    No Opt. Call    11,807,880 
AAA 
  26,0753      Ser. K, 6.00%, 7/01/08, MBIA    ETM    27,172,497 
AAA 
  2,5003   Met. Transp. Auth. Commuter Fac. RB, Ser. A, 6.10%, 7/01/08, MBIA    ETM    2,609,950 
AAA 
  1,500    Middletown Sch. Dist. GO, Ser. A, 3.00%, 11/01/09, FSA    No Opt. Call    1,445,190 
      Monroe Cnty. Pub. Impvt. GO,         
AAA 
  4553      4.00%, 3/01/09, FGIC    ETM    456,461 
AAA 
  770       4.00%, 3/01/09, FGIC    No Opt. Call    772,279 
AAA 
  2,095       4.00%, 3/01/10, FGIC    No Opt. Call    2,099,148 
      Mt. Sinai Union Free Sch. Dist. GO,         
AAA 
  935       6.00%, 2/15/08, AMBAC    No Opt. Call    968,090 
AAA 
  930       6.10%, 2/15/09, AMBAC    No Opt. Call    981,885 
AAA 
  1,075       6.10%, 2/15/10, AMBAC    No Opt. Call    1,154,206 
      New Paltz Central Sch. Dist. GO,         
AAA 
  500       3.125%, 6/01/08, FGIC    No Opt. Call    492,500 
AAA 
  610       3.50%, 6/01/09, FGIC    No Opt. Call    603,192 

See Notes to Financial Statements.

51


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

   
Principal 
           
   
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
   
  New York—(cont’d)         
   
  New York City GO,         
AAA   
$      2,265 
     4.75%, 8/15/09, XLCA    08/08 @ 101    $      2,318,748 
AAA   
1,000 
     Ser. A, 5.20%, 8/01/10, FSA    08/08 @ 101    1,035,010 
AAA   
12,755 
     Ser. C, 5.00%, 8/01/08, FSA    No Opt. Call    13,048,875 
AAA   
45 
     Ser. C-1, 6.25%, 8/01/10, FSA    07/06 @ 100    45,066 
AAA   
50 
     Ser. C-1, 6.375%, 8/01/08, MBIA    07/06 @ 100    50,076 
AAA   
2,0003
     Ser. E, 6.20%, 8/01/08, MBIA    ETM    2,095,400 
AAA   
4,895 
     Ser. E, 6.20%, 8/01/08, MBIA    No Opt. Call    5,123,548 
   
  New York City Mun. Wtr. Fin. Auth. RB,         
AAA   
11,500 
     Ser. A, Zero Coupon, 6/15/09, MBIA    No Opt. Call    10,211,655 
AAA   
1,7103
     Ser. A, 6.00%, 6/15/08, FGIC    ETM    1,780,384 
AAA   
2,4554
  New York City RB, 4.75%, 8/15/08, XLCA    N/A    2,525,409 
   
  New York City RB, Hlth. & Hosp. Corp. Hlth. Sys.,         
AAA   
2,810 
     Ser. A, 3.75%, 2/15/09, FSA    No Opt. Call    2,796,793 
AAA   
2,000 
     Ser. A, 5.00%, 2/15/08, AMBAC    No Opt. Call    2,036,720 
AAA   
7,8003
  New York City Transl. Fut. Tax RB, Ser. B, 5.25%, 5/01/11, MBIA    ETM    8,258,172 
   
  New York City Transl. Fin. Auth. RB,         
AAA   
2,6053
     4.00%, 5/01/09, MBIA    ETM    2,613,857 
AAA   
1,395 
     4.00%, 5/01/09, MBIA    No Opt. Call    1,400,482 
AAA   
2,0003
     Ser. C, 5.00%, 8/01/09, FSA    ETM    2,064,760 
AAA   
1,000 
  New York St. GO, Ser. F, 5.50%, 9/15/08, AMBAC    No Opt. Call    1,035,790 
AAA   
1,040 
  Newfane Central Sch. Dist. GO, 3.00%, 6/01/08, FSA    No Opt. Call    1,019,751 
AAA   
250 
  Pwr. Auth. RB, Ser. CC, 5.125%, 1/01/11, MBIA    ETM    262,490 
AAA   
1,185 
  So. Seneca Central Sch. Dist. GO, 3.20%, 6/15/08, MBIA    No Opt. Call    1,168,007 
AAA   
1,030 
  Sodus Central Sch. Dist. GO, 4.00%, 6/15/09, FGIC    No Opt. Call    1,036,232 
AAA   
1,675 
  Suffolk Cnty. Wtr. Auth. RB, Ser. C, 5.75%, 6/01/08, AMBAC    No Opt. Call    1,733,407 
AAA   
5,000 
  Suffolk Cnty. Ind. Dev. Agcy. RB, 6.00%, 2/01/08, FGIC    No Opt. Call    5,161,250 
   
  Thruway Auth. RB,         
AAA   
4,955 
     Ser. A, 3.75%, 3/15/09, MBIA    No Opt. Call    4,943,504 
AAA   
2,000 
     Hwy. & Brdg. Trust Fund Proj., Ser. A, 3.90%, 4/01/09, FSA    No Opt. Call    2,002,480 
AAA   
2,000 
     Hwy. & Brdg. Trust Fund Proj., Ser. B, 4.00%, 4/01/09, MBIA    No Opt. Call    2,007,620 
AAA   
2,900 
     Hwy. & Brdg. Trust Fund Proj., Ser. B, 5.25%, 4/01/11, MBIA    No Opt. Call    3,063,792 
AAA   
3,410 
     Svc. Contract Rev., Local Hwy. & Brdg. Proj., Ser. A, 5.375%, 4/01/09, MBIA    04/08 @ 101    3,532,896 
AAA   
2,2653
  Triborough Brdg. & Tunl. Auth. RB, Ser. A, 5.125%, 1/01/11, MBIA    ETM    2,353,426 
   
  Urban Dev. Corp. Correctional Facs. RB,         
AAA   
2,000 
     Ser. A, 5.50%, 1/01/09, AMBAC    No Opt. Call    2,078,000 
AAA   
5,140 
     Ser. B, 5.25%, 1/01/10, AMBAC    01/09 @ 101    5,348,324 
   
  Total Long-Term Investments (cost $228,000,069)        231,738,542 
   
  SHORT-TERM INVESTMENTS—27.2%         
   
  Alaska—3.4%         
A-1+   
5,8005
  Valdez Marine Term. RB, Exxon Pipeline Co. Proj., Ser. A, 3.88%, 7/03/06, FRDD    N/A    5,800,000 
   
  New York—13.6%         
   
  Local Gov’t. Asst. Corp. RB,         
A-1+   
8305
     3.95%, 7/05/06, FRWD    N/A    830,000 
A-1+   
8,3505
     3.90%, 7/05/06, FSA, FRWD    N/A    8,350,000 
A-1+   
6755
  Nassau Cnty. Interim Fin. Auth. RB, 3.93%, 7/05/06, FSA, FRWD    N/A    675,000 
   
  New York City GO,         
A-1+   
4,7005
     Ser. A-7, 3.95%, 7/03/06, FRDD    N/A    4,700,000 
A-1+   
7,7405
     Ser. H-7, 3.95%, 7/03/06, FRDD    N/A    7,740,000 
   
  New York City Mun. Wtr. Fin. Auth. Wtr. & Swr. Sys. RB,         
A-1+   
1,1005
     Ser. C, 3.92%, 7/03/06, FRDD    N/A    1,100,000 
A-1+   
1005
     Ser. G, 3.94%, 7/03/06, FGIC, FRDD    N/A    100,000 
   
          23,495,000 
   
  Ohio—5.1%         
VMIG1   
3,2005
  Hamilton Cnty. Hosp. Facs. Proj. RB, 3.97%, 7/06/06, FRWD    N/A    3,200,000 
VMIG1   
5,6005
  Univ. of Akron RB, 3.97%, 7/06/06, FGIC, FRWD    N/A    5,600,000 
   
          8,800,000 

See Notes to Financial Statements.

52


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

    Principal         
    Amount         
Rating1 
      (000)       
Description 
  Value 
 
        Puerto Rico—2.5%     
A-1 
  $      1,8005   Gov’t. Dev. Bank RB, 3.87%, 7/05/06, MBIA, FRWD    $      1,800,000 
A-1 
  2,5005   Hwy. & Transp. Auth. RB, Ser. A, 3.94%, 7/05/06, AMBAC, FRWD    2,500,000 
            4,300,000 
    Shares         
    (000)         
        Money Market Fund—2.6%     
NR   
4,500 
  AIM Tax Free Investment Co. Cash Reserve Portfolio    4,500,000 
        Total Short-Term Investments (cost $46,895,000)    46,895,000 
        Total Investments—161.5% (cost $274,895,0696)    $ 278,633,542 
        Other assets in excess of liabilities—2.1%    3,537,098 
        Preferred shares at redemption value, including dividends payable—(63.6)%   
(109,650,884)
        Net Assets Applicable to Common Shareholders—100%    $ 172,519,756 


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

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

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

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

5 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

6 Cost for Federal income tax purposes is $274,332,757. The net unrealized appreciation on a tax basis is $4,300,785, consisting of $5,296,384 gross unrealized appreciation and $995,599 gross unrealized depreciation.

The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 88.6% of the Trust’s managed assets:

ACA 
 
1.8% 
AMBAC 
 
9.0% 
CONNIE LEE 
 
2.2% 
FGIC 
 
16.4% 
FSA 
 
18.5% 
MBIA 
 
36.3% 
XLCA 
 
2.8% 
Other 
 
1.6% 

KEY TO ABBREVIATIONS
ACA 
 
American Capital Access    FRWD 
 
Floating Rate Weekly Demand 
AMBAC 
 
American Municipal Bond Assurance Corp.    FSA 
 
Financial Security Assurance 
CONNIE LEE 
 
College Construction Loan Insurance Assoc.    GO 
 
General Obligation 
ETM 
 
Escrowed to Maturity    MBIA 
 
Municipal Bond Insurance Assoc. 
FGIC 
 
Financial Guaranty Insurance Co.    RB 
 
Revenue Bond 
FRDD 
 
Floating Rate Daily Demand    XLCA 
 
XL Capital Assurance 

See Notes to Financial Statements.

53


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock New York Municipal 2018 Term Trust (BLH)

    Principal             
    Amount        Option Call     
Rating1 
      (000)       
Description 
  Provisions2        Value 
 
        LONG-TERM INVESTMENTS—150.5%         
        Multi-State—7.3%         
A3    $      4,0003   Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/09    No Opt. Call    $      4,225,640 
        New York—135.1%         
NR    450    Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/25    05/15 @ 102    425,880 
        Dorm. Auth. RB,         
AA   
1,000 
     Brooklyn Law Sch. Proj., Ser. A, 5.50%, 7/01/18, RAA    07/13 @ 100    1,059,370 
AA-   
1,8004
     City Univ. Proj., Ser. A, 5.125%, 7/01/11    N/A    1,894,860 
AAA   
3,4554
     Mental Hlth. Svcs. Proj., Ser. A, 5.00%, 2/15/08    N/A    3,585,115 
AA-    295       Mental Hlth. Svcs. Proj., Ser. A, 5.00%, 2/15/18    02/08 @ 102    300,932 
AAA    110       Mental Hlth. Svcs. Proj., Ser. A, 5.50%, 8/15/20, MBIA    08/11 @ 100    116,976 
AAA   
1,0304
     Mental Hlth. Svcs. Proj., Ser. B, 5.50%, 8/15/11, MBIA    N/A    1,105,623 
AAA   
1,4804
     Mental Hlth. Svcs. Proj., Ser. B, 5.50%, 8/15/11, MBIA    N/A    1,588,662 
AA-   
1,1704
     Upstate Cmnty. Proj., Ser. A, 5.00%, 7/01/09    N/A    1,217,373 
AA-   
2,060 
     Upstate Cmnty. Proj., Ser. A, 5.00%, 7/01/19    07/09 @ 101    2,113,478 
AAA   
1,000 
     Willow Towers, Inc., Proj., 5.25%, 2/01/22    08/12 @ 101    1,048,130 
Aaa   
1,320 
  East Rochester Hsg. Auth. RB, 5.20%, 12/20/24    12/11 @ 101    1,357,726 
BBB   
2,450 
  Jefferson Cnty. Indl. Dev. Agcy. Sld. Wst. Disp. RB, 5.20%, 12/01/20    12/13 @ 100    2,401,245 
AAA   
1,900 
  Long Island Pwr. Auth. Elec. Sys. RB, Zero Coupon, 6/01/18, FSA    No Opt. Call    1,113,495 
AAA   
5,000 
  Met. Transp. Auth. RB, Ser. A, 5.125%, 11/15/21, FGIC    11/12 @ 100    5,244,100 
   
  New York City GO,         
AA-   
4,000 
     Ser. B, 5.375%, 12/01/20    12/11 @ 100    4,189,480 
AA-   
5,000 
     Ser. G, 5.75%, 8/01/18    08/12 @ 100    5,397,350 
A-   
4,000 
  New York City Indl. Dev. Agcy. Civic Fac. RB, YMCA of Greater New York Proj., 5.25%, 8/01/21 .    02/11 @ 100    4,086,080 
B   
1,000 
  New York City Indl. Dev. Agcy. RB, 7.50%, 8/01/16    No Opt. Call    1,127,510 
   
  New York City Transl. Fin. Auth. RB,         
AAA   
1,0904
     5.00%, 5/01/09    N/A    1,132,325 
AAA   
805 
     5.00%, 5/01/19    05/09 @ 101    829,070 
AAA   
3,000 
     Ser. B, 5.00%, 5/01/18    11/11 @ 101    3,113,280 
AA-   
3,500 
  New York Urban Dev. Corp. Correctional Facs. RB, 5.00%, 1/01/19    01/08 @ 102    3,563,770 
AA   
4,180 
  Niagara Cnty. Ind. Dev. Agcy. Civic Fac. RB, Niagara Univ. Proj., Ser. A, 5.35%, 11/01/23, RAA    11/11 @ 101    4,382,646 
AA   
4,130 
  Oneida Hlth. Care Corp. RB, Residential Hlth. Care Proj., 5.30%, 2/01/21, RAA    02/11 @ 101    4,286,527 
AA   
3,875 
  Orange Cnty. Ind. Dev. Agcy. Civic Fac. RB, St. Luke’s Hosp. Newburg Proj., Ser. A,         
   
     5.375%, 12/01/21, RAA    12/11 @ 101    4,057,241 
   
  Port Auth. of New York & New Jersey RB,         
AAA   
3,8855
     Ser. 126, 5.00%, 11/15/18, FGIC    05/12 @ 101    3,960,602 
Caa2   
2,600 
     Contl./Eastn. LaGuardia Proj., 9.125%, 12/01/15    07/06 @ 100    2,662,556 
BBB   
4,000 
  Rockland Tobacco Asset Sec. Corp. Tobacco Settlement RB, 5.625%, 8/15/35    08/12 @ 100    4,080,640 
AAA   
3,0004
  TSASC, Inc., Tobacco Settlement RB, Ser. 1, 5.75%, 7/15/12    N/A    3,281,940 
AAA   
3,710 
  Westchester Cnty. Ind. Dev. Agcy. Civic Fac. RB, Ser. A, 5.125%, 12/01/22, AMBAC    12/11 @ 102    3,887,783 
   
          78,611,765 
   
  Puerto Rico—8.1%         
BBB   
2,000 
  Children’s Trust Fund Tobacco Settlement RB, 5.625%, 5/15/43    05/12 @ 100    2,049,960 
Aaa   
2,5004
  Pub. Fin. Corp. RB, Ser. E, 5.70%, 2/01/10    N/A    2,645,100 
   
          4,695,060 
   
  Total Long-Term Investments (cost $83,168,068)        87,532,465 

See Notes to Financial Statements.

54


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

  Shares         
 
(000) 
     
Description 
  Value 
 
      MONEY MARKET FUND—0.6%     
  350    AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $350,000)    $       350,000 
      Total Investments—151.1% (cost $83,518,0686)    $ 87,882,465 
      Other assets in excess of liabilities—2.9%    1,697,046 
      Preferred shares at redemption value, including dividends payable—(54.0)%    (31,409,034)
      Net Assets Applicable to Common Shareholders—100%    $ 58,170,477 


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

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

3 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2006, the Trust held 7.3% of its net assets, with a current market value of $4,225,640, in securities restricted as to resale.

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

5 Security pledged as collateral.

6 Cost for Federal income tax purposes is $83,520,084. The net unrealized appreciation on a tax basis is $4,362,381, consisting of $4,423,787 gross unrealized appreciation and $61,406 gross unrealized depreciation.

KEY TO ABBREVIATIONS 
AMBAC 
 
American Municipal Bond Assurance Corp.    MBIA 
 
Municipal Bond Insurance Assoc. 
FGIC    Financial Guaranty Insurance Co.    RAA 
 
Radian Asset Assurance 
FSA    Financial Security Assurance    RB 
 
Revenue Bond 
GO    General Obligation         

See Notes to Financial Statements.

55


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

   
Principal 
           
   
Amount 
      Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
   
  LONG-TERM INVESTMENTS—137.1%         
   
  Multi-State—14.1%         
A3   
$      4,0003
  MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49    06/09 @ 100    $     4,253,240 
   
  Pennsylvania—113.6%         
AAA   
2,1504
,5 Allegheny Cnty. Port Auth. RB, 6.125%, 3/01/09, MBIA    N/A    2,289,298 
AAA   
1,8004
  Allegheny Cnty. San. Auth. RB, 5.375%, 12/01/07, MBIA    N/A    1,872,198 
BBB+   
1,400 
  Bucks Cnty. Ind. Dev. Auth. RB, Pennswood Vlg. Proj., Ser. A, 6.00%, 10/01/34    10/12 @ 101    1,460,690 
AAA   
2,5006
  Delaware Cnty. Hlth. Facs. Auth. RB, Mercy Hlth. Corp. Proj., 6.00%, 12/15/26    ETM    2,575,725 
AAA   
1,250 
  Delaware Cnty. Ind. Dev. Auth. Wtr. Facs. RB, 6.00%, 6/01/29, FGIC    06/09 @ 101    1,325,075 
   
  Econ. Dev. Fin. Auth. RB,         
A3   
1,000 
     Amtrak Proj., Ser. A, 6.25%, 11/01/31    05/11 @ 101    1,066,050 
A3   
1,000 
     Amtrak Proj., Ser. A, 6.375%, 11/01/41    05/11 @ 101    1,070,470 
NR7   
1,000 
     Amtrak Proj., Ser. G, 5.125%, 12/01/15    No Opt. Call    972,350 
   
  Higher Edl. Facs. Auth. RB,         
AA-   
1,250 
     Lafayette Coll. Proj., 6.00%, 5/01/30    05/10 @ 100    1,331,275 
AA   
95 
     Philadelphia Univ. Proj., 6.10%, 6/01/30, RAA    06/10 @ 100    100,764 
AA   
2,000 
     Univ. of the Arts Proj., Ser. A, 5.00%, 9/15/33, RAA    09/16 @ 100    2,018,960 
AA   
1,030 
     Univ. of PA. Proj., Ser. C, 4.75%, 7/15/35    07/15 @ 100    1,003,076 
AAA   
1,000 
     Univ. Pptys. Student Hsg. Proj., A, 5.00%, 8/01/35    08/16 @ 100    1,012,600 
A-   
1,250 
  Montgomery Cnty. Ind. Dev. Auth. Retirement Cmnty. RB, 5.25%, 11/15/28    11/08 @ 101    1,250,400 
AA   
1,000 
  Pennsylvania St. Univ. RB, 5.00%, 9/01/35    09/15 @ 100    1,020,550 
AAA   
1,250 
  Philadelphia Arpt. Sys. RB, Ser. B, 5.40%, 6/15/27, FGIC    06/07 @ 102    1,275,800 
AAA   
1,250 
  Philadelphia Pkg. Auth. Pkg. RB, 5.625%, 9/01/18, FSA    09/09 @ 101    1,316,388 
   
  Philadelphia Sch. Dist. GO,         
AAA   
2,8004
     Ser. C, 5.50%, 3/01/10, MBIA    N/A    2,945,152 
AAA   
3,050 
     Ser. C, 5.75%, 3/01/29, MBIA    03/10 @ 100    3,233,793 
AAA   
2,000 
  Pittsburgh Wtr. & Swr. Sys. RB, 5.00%, 9/01/33, MBIA    09/15 @ 100    2,039,620 
AAA   
2,250 
  Southeastern Trans. Auth. RB, 5.375%, 3/01/17, FGIC    03/07 @ 102    2,317,005 
AAA   
840 
  Washington Cnty. Auth. RB, Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29    No Opt. Call    894,104 
   
          34,391,343 
   
  Puerto Rico—9.4%         
Aaa   
1,4954
  Pub. Fin. Corp. RB, Ser. E, 5.50%, 2/01/12    N/A    1,607,469 
BBB-   
1,250 
  Indl. Tourist Edl. RB, Ana G. Mendez Univ. Sys. Proj., 5.00%, 3/01/26    03/16 @ 100    1,234,512 
   
          2,841,981 
   
  Total Long-Term Investments (cost $39,627,137)        41,486,564 
   
  SHORT-TERM INVESTMENTS—17.8%         
   
  Pennsylvania—17.8%         
A-1+   
1,4008
  Emmaus Gen. Auth. RB, 3.98%, 7/05/06, FSA, FRWD    N/A    1,400,000 
VMIG1   
1008
  Higher Ed. Facs. Auth. RB, St. Sys. Higher Ed. Proj., Ser. A, 3.96%, 7/06/06, MBIA, FRWD    N/A    100,000 
   
  Higher Edl. Asst. Agcy. RB,         
VMIG1   
5008
     4.01%, 7/05/06, AMBAC, FRWD    N/A    500,000 
A-1+   
1,4008
     Ser. A, 4.01%, 7/05/06, AMBAC, FRWD    N/A    1,400,000 
VMIG1   
8008
  Lehigh Cnty. Gen. Purp. Auth. RB, Lehigh Valley Hosp. Proj., 3.89%, 7/03/06, AMBAC, FRDD .    N/A    800,000 
A-1   
1,2008
  South Fork Mun. Auth. Hosp. RB, Conemaugh Hlth Sys. Proj., Ser. A, 3.98%,         
   
     7/03/06, MBIA, FRDD    N/A    1,200,000 
   
  Total Short-Term Investments (cost $5,400,000)        5,400,000 
   
  Total Investments—154.9% (cost $45,027,1379)        $  46,886,564 
   
  Other assets in excess of liabilities—2.9%        888,783 
   
  Preferred shares at redemption value, including dividends payable—(57.8)%        (17,503,356) 
   
  Net Assets Applicable to Common Shareholders—100%        $  30,271,991 

See Notes to Financial Statements.

56


BlackRock Pennsylvania Strategic Municipal Trust (BPS) (continued)


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

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

3 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of June 30, 2006, the Trust held 14.1% of its net assets, with a current market value of $4,253,240, in securities restricted as to resale.

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

5 Security pledged as collateral.

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

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

8 For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of June 30, 2006.

9 Cost for Federal income tax purposes is $44,972,176. The net unrealized appreciation on a tax basis is $1,914,388, consisting of $2,025,868 gross unrealized appreciation and $111,480 gross unrealized depreciation.

KEY TO ABBREVIATIONS 
AMBAC
 
American Municipal Bond Assurance Corp.    FSA 
 
Financial Security Assurance 
ETM    Escrowed to Maturity    GO 
 
General Obligation 
FGIC    Financial Guaranty Insurance Co.    MBIA 
 
Municipal Bond Insurance Assoc. 
FRDD    Floating Rate Daily Demand    RAA 
 
Radian Asset Assurance 
FRWD    Floating Rate Weekly Demand    RB 
 
Revenue Bond 

See Notes to Financial Statements.

57


PORTFOLIO OF INVESTMENTS (unaudited)
JUNE 30, 2006

BlackRock Long-Term Municipal Advantage Trust (BTA)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        LONG-TERM INVESTMENTS—100.8%         
        Municipal Bonds—100.8%         
        California—19.6%         
A+    $     10,000    California GO, 5.00%, 2/01/32    08/13 @ 100    $      10,088,500 
NR3    7,000    Irvine Unified Sch. Dist. Fin. Grp. II ST, Ser. A, 5.125%, 9/01/36    09/06 @ 103    6,863,780 
BBB    72,945    Stanislaus Cnty. Tobacco Sec. Cap. Apprec. RB, Ser. A, Zero Coupon, 6/01/46    06/16 @ 18.256    6,210,537 
BBB+    7,250    Statewide Cmntys. RB, Daughters of Charity Hlth. Proj., Ser. A, 5.00%, 7/01/39    07/15 @ 100    7,123,415 
BBB    60,000    Statewide Fin. Auth. Tobacco Settlement Cap. Apprec. RB, Turbo Pooled Prog. A,         
           Zero Coupon, 6/01/46    06/16 @ 15.782    5,088,600 
                35,374,832 
        District of Columbia—13.7%         
        Tobacco Settlement Fin. Corp.,         
BBB    6,880       Asset Bkd. Bds., 6.25%, 5/15/24    05/11 @ 101    7,276,632 
BBB    15,415       RB, 6.50%, 5/15/33    No Opt. Call    17,332,934 
                24,609,566 
        Florida—1.1%         
NR    1,150    Baywinds Cmnty. Dev. Dist. RB, Ser. A, 5.25%, 5/01/37    05/16 @ 100    1,122,964 
AAA    865    JEA Wtr. & Swr. Sys. RB, Ser. A, 4.75%, 10/01/36, MBIA    04/11 @ 100    837,960 
                1,960,924 
        Georgia—0.5%         
BBB    1,000    Cobb Cnty. Dev. Auth. RB, Waga Sld. Wst. Mgt. Proj., Ser. A, 5.00%, 4/01/33    04/16 @ 101    971,210 
        Idaho—2.9%         
        Madison Cnty. Hosp. COP,         
BBB-    2,145       5.25%, 9/01/26    09/16 @ 100    2,164,734 
BBB-    1,000       5.25%, 9/01/30    09/16 @ 100    1,001,330 
BBB-    2,000       5.25%, 9/01/37    09/16 @ 100    2,002,660 
                5,168,724 
        Illinois—10.3%         
        Fin. Auth. RB,         
A-    14,890       Illinois Inst. of Technology Proj., Ser. A, 5.00%, 4/01/36    04/16 @ 100    14,684,667 
BBB-    4,000       Proctor Hosp. Proj., 5.125%, 1/01/25    01/16 @ 100    3,939,200 
                18,623,867 
        Indiana—2.8%         
Baa2    5,000    Delaware Cnty. Hosp. Auth. RB, Cardinal Hlth. Sys. Proj., 5.25%, 8/01/36    08/16 @ 100    4,969,850 
        Montana—2.2%         
        Two Rivers Auth, Inc. RB,         
NR    1,500       7.25%, 11/01/21    11/11 @ 107    1,455,570 
NR    2,600       7.375%, 11/01/27    11/11 @ 107    2,514,512 
                3,970,082 
        Nevada—3.6%         
NR    6,600    Henderson Local Impvt. Dist. No. T-18 SA, 5.30%, 9/01/35    09/06 @ 103    6,446,814 
        New Hampshire—2.7%         
BBB    5,000    St. Business Fin. Auth. RB, Wst. Mgmt., Inc. Proj., 5.20%, 5/01/27    05/16 @ 101    4,949,450 
        New Jersey—4.2%         
BBB    7,335    Tobacco Settlement Fin. Corp. Asset Bkd. Bds., 5.75%, 6/01/32    06/12 @ 100    7,634,048 
        New Mexico—8.1%         
BBB    15,000    Farmington PCRB, San Juan Proj., Ser. B, 4.875%, 4/01/33    04/16 @ 101    14,573,250 
        New York—7.2%         
BBB    5,000    Nassau Cnty. Tobacco Settlement Corp. Asset Bkd. Bds., Ser. A2, Zero Coupon, 6/01/26    06/16 @ 100    4,271,750 
B    7,600    New York City Indl. Dev. Agcy. RB American Airlines, JFK Intl. Arpt. Proj., 7.625%, 8/01/25    08/16 @ 101    8,777,316 
                13,049,066 

See Notes to Financial Statements.

58


BlackRock Long-Term Municipal Advantage Trust (BTA) (continued)

    Principal             
    Amount        Option Call     
Rating1 
     
(000) 
     
Description 
  Provisions2        Value 
 
        Puerto Rico—3.7%         
BBB-    $      6,825    Indl. Tourist Edl. RB, Ana G. Mendez Univ. Sys. Proj., 5.00%, 3/01/36    03/16 @ 100    $      6,629,396 
        Texas—14.7%         
BBB    10,000    Alliance Arpt. Auth., Inc. Spl. Fac. RB, FedEx Corp. Proj., 4.85%, 4/01/21    04/16 @ 100    9,772,800 
Baa2    10,000    Brazos River Auth. PCRB, 5.00%, 3/01/41    03/11 @ 100    9,802,900 
AAA    7,000    Dallas/Fort Worth Intl. Arpt. Facs. Impvt. Corp. RB, Ser. A, 5.00%, 11/01/35, FSA    11/08 @ 100    7,005,600 
                26,581,300 
        Virginia—3.5%         
        Peninsula Ports Auth. RB, Baptist Homes Proj.,         
NR    3,250       Ser. C, 5.375%, 12/01/26    12/16 @ 100    3,248,115 
NR    3,000       Ser. C, 5.40%, 12/01/33    12/16 @ 100    2,983,830 
                6,231,945 
        Total Municipal Bonds        181,744,324 
        Tender Obligation Municipal Bonds—0.0%         
        California—0.0%         
AAA    54   Golden St. Tobacco Sec. RITES, Ser. 1271, 6/01/45, AMBAC    06/15 @ 100     
AAA    54   Univ. of California RITES, Ser. 1274, 5/15/38, MBIA    05/13 @ 101     
                 
        Georgia—0.0%         
AAA    54   Atlanta Arpt. Passenger Fac. RITES, Ser. 1283, 1/01/33, FSA    07/14 @ 100     
AAA    54   Atlanta Wtr. & Wstwtr. RITES, Ser. 1273, 11/01/43, FSA    11/14 @ 100     
                 
        Illinois—0.0%         
AAA    54   Chicago O’Hare Intl. Arpt. RITES, Ser. 1284, 1/01/33, FGIC    01/16 @ 100     
        Indiana—0.0%         
        Carmel Ind. Redev. Auth. Lease RITES,         
AA    54      Ser. 1275, 2/01/33    02/16 @ 100     
AA    54      Ser. 1275, 2/01/33    02/16 @ 100     
                 
        Nebraska—0.0%         
AAA    54   Omaha Pub. Pwr. Dist. Elec. RITES, Ser. 1289, 2/01/36, FGIC    02/16 @ 100     
        New York—0.0%         
Aa3    54   Liberty Dev. Corp. RITES, Ser. 1288, 10/01/35    No Opt. Call     
Aa2    54   New York City Mun. Wtr. Fin. Auth. RITES, Ser. 1314, 6/15/39    06/15 @ 100     
                 
        North Carolina—0.0%         
AA    54   Charlotte Mecklenberg Hosp. RITES, Ser. 1272, 1/15/45    01/15 @ 100     
AA+    54   Univ. of No. Carolina Chapel Hill RITES, Ser. 1287, 12/01/34    12/15 @ 100     
                 
        South Carolina—0.0%         
Aaa    54   Transp. Infrastructure Bank RITES, Ser. 1285, 10/01/33, AMBAC    10/13 @ 100     
        Texas—0.0%         
AAA    54   New Caney Indpt. Sch. Dist. RITES, Ser. 1286, 2/15/35    02/16 @ 100     
        Total Long-Term Investments (cost $185,293,238)        181,744,324 
        SHORT TERM INVESTMENTS—1.2%         
        Nebraska—0.1%         
A-1+    141    American Pub. Energy Agcy., Gas Sply. RB, 3.99%, 7/06/06, FRWD    NA    141,000 

See Notes to Financial Statements.

59


BlackRock Long-Term Municipal Advantage Trust (BTA) (continued)

  Shares         
  (000)       
Description 
  Value 
      Money Market Fund—1.1%     
  2,050    AIM Tax Free Investment Co. Cash Reserve Portfolio    $      2,050,000 
      Total Short-term Investments (cost $2,191,000)    2,191,000 
      Total Investments—102.0% (cost $187,484,2385)    $ 183,935,324 
      Liabilities in excess of other assets—(2.0)%    (3,576,999)
      Net Assets Applicable to Common Shareholders—100%    $ 180,358,325 


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

2 Date (month/year) and price of the earliest optional 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 Residual Interest/Tax Exempt Municipal Bonds. The interest rate shown bears an inverse relationship to the interest rate on another security or the value of an index.

5 Cost for Federal income tax purposes is $187,484,165. The net unrealized depreciation on a tax basis is $3,548,841, consisting of $6,082,769 gross unrealized appreciation and $9,631,610 gross unrealized depreciation.

KEY TO ABBREVIATIONS 
AMBAC  
 
American Municipal Bond Assurance Corp.    PCRB 
 
Pollution Control Revenue Bond 
COP    Certificate of Participation    RB 
 
Revenue Bond 
FGIC    Financial Guaranty Insurance Co.    RITES 
 
Residual Interest Tax Exempt Bonds 
FSA    Financial Security Assurance    SA 
 
Special Assessment 
GO    General Obligation    ST 
 
Special Tax 
MBIA    Municipal Bond Insurance Assoc.         

See Notes to Financial Statements.

60


STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
June 30, 2006

 

   
Insured    
Insured             
   
Municipal 2008        
Municipal 
        Municipal 2018           Municipal 2020  
   
Term Trust
   
Term Trust 
   
Term Trust
     
Term Trust
 
   
(BRM)    
(BMT)      (BPK)      
(BKK)
 
 
Assets   
   
             
Investments at value1   
$
682,770,180    
$
428,307,811     $  381,665,951      $  478,718,262  
Investments in affiliates   
168,377    
121,751      47,954       32,742  
Cash   
535,097    
535,409      540,050       516,282  
Receivable from investments sold   
3,070,658    
1,824,078            1,000,000  
Interest receivable   
7,489,757    
3,928,176      4,746,119       5,428,965  
Unrealized appreciation on swaps   
   
      1,095,332       1,373,064  
Other assets   
39,064    
19,020      18,290       31,792  
   
694,073,133    
434,736,245      388,113,696       487,101,107  
 
Liabilities   
   
             
Payable for investments purchased   
   
             
Cash with brokers as collateral   
   
      1,102,118       1,252,679  
Dividends payable—common shares   
1,802,469    
787,363      1,201,056       1,340,677  
Investment advisory fee payable   
199,480    
125,179      127,295       199,834  
Administration fee payable   
56,994    
35,766             
Deferred Trustees’ fees   
168,377    
121,751      47,954       32,742  
Payable to affiliates   
47,440    
39,687      26,261       21,668  
Other accrued expenses   
213,636    
124,695      118,460       102,160  
   
2,488,396    
1,234,441      2,623,144       2,949,760  
 
Preferred Shares at Redemption Value   
   
             
$25,000 liquidation value per share, including   
   
             
   dividends payable2   
271,125,237    
170,595,847      137,621,962       177,667,551  
 
Net Assets Applicable to Common   
   
             
   Shareholders   
$
420,459,500    
$
262,905,957     $  247,868,590      $  306,483,796  
Composition of Net Assets Applicable to   
   
             
   Common Shareholders:   
   
             
   Par value3   
$
272,071    
$
258,856     $  15,908      $  20,237  
   Paid-in capital in excess of par   
377,589,494    
239,251,319      225,641,716       287,166,281  
   Undistributed net investment income   
36,328,517    
15,410,172      17,712,147       1,848,954  
   Accumulated net realized gain (loss)   
(241,635 )   
22,243      (13,560,970 )      (808,035 ) 
   Net unrealized appreciation   
6,511,053    
7,963,367      18,059,789       18,256,359  
Net assets applicable to common shareholders,   
   
             
   June 30, 2006   
$
420,459,500    
$
262,905,957     $  247,868,590      $  306,483,796  
 
Net asset value per common share4   
$
15.45    
$
10.16   
 $
15.58    
  $
15.15  
 
1 Investments at cost   
$
676,259,127    
$
420,344,443     $  364,701,494      $  461,834,967  
2 Preferred shares outstanding   
10,840    
6,816      5,504       7,104  
3 Par value per share   
0.010    
0.010      0.001       0.001  
4 Common shares outstanding   
27,207,093    
25,885,639      15,908,028       20,236,628  

See Notes to Financial Statements.

61


 
 
California 
 
Municipal 
Strategic
Insured 
California
Florida Insured 
Florida
 
Target 
     
Municipal
     
Municipal 2008 
     
Municipal 2018
     
Municipal 2008 
     
Municipal 2020
 
Term Trust 
Trust
Term Trust 
Term Trust
Term Trust 
Term Trust
 
 
(BMN) 
(BSD)
(BFC) 
(BJZ)
(BRF) 
(BFO)
 
 
 
$ 458,673,070    $  172,398,413     $ 261,644,415    $  149,608,111     $  198,658,233    $  128,852,779  
148,524      33,771     57,823      14,114       46,215      7,345  
503,853      516,806     506,984      531,670       514,550      546,365  
      165,402                 10,506,545      145,000  
1,643,374      2,082,898     3,257,118      1,846,750       2,891,625      1,376,484  
      463,447           390,019             377,136  
  27,788      18,028       29,694      14,346       20,237      18,234  
  460,996,609      175,678,765       265,496,034      152,405,010       212,637,405      131,323,343  
 
 
      1,186,972                        
      600,084                        
1,413,406      665,146     669,956      394,023       326,516      309,393  
131,976      64,406     76,427      50,153       61,191      54,033  
73,694          21,836            17,485       
148,524      33,772     57,823      14,114       46,215      7,345  
57,173      10,454     23,609      11,923       17,683      7,596  
  295,962      71,518       105,552      72,462       87,651      87,414  
  2,120,735      2,632,352       955,203      542,675       556,741      465,781  
 
 
 
        62,013,483       104,593,465      55,545,634       84,158,415      48,924,981  
 
 
$ 458,875,874    $  111,032,930     $ 159,947,366    $  96,316,701     $  127,922,249    $  81,932,581  
 
 
$ 454,106    $  7,259     $ 104,071    $  6,433     $  87,071    $  5,562  
420,179,598      102,871,895     144,174,166      91,213,865       120,583,337      78,885,738  
34,004,297      3,886,625     13,531,165      4,488,868       7,012,531      25,759  
4,207,187      (3,651,518 )          (3,005,994 )      20,001      (703,402 ) 
  30,686      7,918,669       2,137,964      3,613,529       219,309      3,718,924  
 
$ 458,875,874    $  111,032,930     $ 159,947,366    $  96,316,701     $  127,922,249    $  81,932,581  
 
$ 10.11   
$
15.29     $ 15.37   
$
14.97    
$ 
14.69   
$ 
14.73  
 
$ 458,642,384    $  164,943,190     $ 259,506,451    $  146,384,601     $  198,438,924    $  125,510,990  
      2,480     4,182      2,221       3,366      1,956  
0.010      0.001     0.010      0.001       0.010      0.001  
45,410,639      7,259,444     10,407,093      6,433,028       8,707,093      5,562,128  

See Notes to Financial Statements.

62


STATEMENTS OF ASSETS AND LIABILITIES (unaudited) (continued)
June 30, 2006

 

   
New York 
Pennsylvania
Long-Term
 
   
Insured 
New York
Strategic
Municipal
 
   
Municipal 2008 
     
Municipal 2018
     
Municipal
     
Advantage
 
   
Term Trust 
Term Trust
Trust
Trust
 
     
(BLN) 
(BLH)
(BPS)
(BTA)
 
 
Assets                 
Investments at value1    $ 278,633,542    $ 87,882,465     $ 46,886,564     $ 183,935,324  
Investments in affiliates    68,624    12,611     19,501      
Cash    512,651    503,554     443,166     533,092  
Receivable from investments sold    415,000             
Interest receivable    3,341,839    1,260,184     555,803     2,323,193  
Unrealized appreciation on swaps        219,048     111,646      
Other assets      24,294      13,300       4,068       7,291  
      282,995,950      89,891,162       48,020,748       186,798,900  
 
Liabilities                 
Unrealized depreciation on swaps                5,390,680  
Dividends payable—common shares    513,324    222,523     152,364     912,957  
Investment advisory fee payable    81,359    29,574     17,437     90,647  
Administration fee payable    23,245             
Deferred Trustees’ fees    68,624    12,612     19,500      
Payable to affiliates    26,572    6,153     2,598     2,528  
Other accrued expenses      112,186      40,789       53,502       43,763  
      825,310      311,651       245,401       6,440,575  
 
Preferred Shares at Redemption Value                 
$25,000 liquidation value per share,                 
   including dividends payable2      109,650,884      31,409,034       17,503,356        
 
Net Assets Applicable to Common                 
   Shareholders    $ 172,519,756    $ 58,170,477     $ 30,271,991     $ 180,358,325  
Composition of Net Assets Applicable to Common                 
   Shareholders:                 
   Par value3    $ 112,571    $ 3,633     $ 2,018     $ 13,279  
   Paid-in capital in excess of par    155,947,555    51,482,732     28,402,463     189,852,969  
   Undistributed net investment income    12,695,615    3,309,056     624,634     177,476  
   Accumulated net realized gain (loss)    25,542    (1,208,389 )    (728,197 )    (745,805 ) 
   Net unrealized appreciation (depreciation)      3,738,473      4,583,445       1,971,073       (8,939,594 ) 
Net assets applicable to common shareholders,                 
   June 30, 2006    $ 172,519,756    $ 58,170,477     $ 30,271,991     $ 180,358,325  
 
Net asset value per common share4    $ 15.33    $ 16.01     $ 15.00     $ 13.58  
 
1 Investments at cost    $ 274,895,069    $ 83,518,068     $ 45,027,137     $ 187,484,238  
2 Preferred shares outstanding    4,382    1,256     700      
3 Par value per share    0.010    0.001     0.001     0.001  
4 Common shares outstanding    11,257,093    3,633,028     2,018,066     13,279,378  

See Notes to Financial Statements.

63


STATEMENTS OF OPERATIONS (unaudited)
For the six months ended June 30, 2006

 

   
Insured
Insured
Municipal
Municipal
 
   
Municipal 2008
     
Municipal
     
2018 Term
     
2020 Term
 
   
Term Trust
Term Trust
Trust
Trust
 
     
(BRM)
(BMT)
(BPK)
(BKK)
 
 
Investment Income                 
   Interest income    $ 14,942,687     $ 9,234,555     $ 10,281,598     $ 12,754,558  
   Income from affiliates      4,736       3,963       1,832       895  
       Total investment income      14,947,423       9,238,518       10,283,430       12,755,453  
 
Expenses                 
   Investment advisory    1,210,898     760,810     768,396     1,208,808  
   Administration    345,971     217,374          
   Transfer agent    10,317     11,765     7,421     7,964  
   Custodian    60,106     39,211     37,404     51,882  
   Reports to shareholders    49,253     32,703     25,903     27,981  
   Directors/Trustees    21,675     13,834     14,707     17,390  
   Registration    8,300     8,201     8,201     8,201  
   Independent accountants    21,119     20,351     19,113     19,617  
   Legal    42,530     26,620     21,805     27,183  
   Insurance    23,608     14,809     13,069     16,451  
   Auction agent    347,440     217,720     177,447     228,758  
   Deferred Trustees’ fees    4,736     3,963     1,832     895  
   Miscellaneous      39,844       17,500       21,390       24,834  
       Total expenses excluding interest expense and                 
           excise tax 
  2,185,797     1,384,861     1,116,688     1,639,964  
       Interest expense                  6,342       12,690  
       Total expenses    2,185,797     1,384,861     1,123,030     1,652,654  
           Less fees paid indirectly      (7,969 )      (8,866 )      (10,465 )      (6,632 ) 
       Net expenses      2,177,828       1,375,995       1,112,565       1,646,022  
Net investment income      12,769,595       7,862,523       9,170,865       11,109,431  
 
Realized and Unrealized Gain (Loss)                 
Net realized gain on:                 
       Investments    53,145     3,340     213,453     400,821  
       Futures and swaps                  1,186,725       1,484,199  
      53,145       3,340       1,400,178       1,885,020  
Net change in unrealized appreciation/depreciation on:                 
       Investments    (9,830,954 )    (7,380,227 )    (4,908,127 )    (6,941,251 ) 
       Futures and swaps                  1,704,432       2,138,975  
      (9,830,954 )      (7,380,227 )      (3,203,695 )      (4,802,276 ) 
Net loss      (9,777,809 )      (7,376,887 )      (1,803,517 )      (2,917,256 ) 
 
Dividends from Net Investment Income to                 
   Preferred Shareholders      (4,123,301 )      (2,605,134 )      (2,182,874 )      (2,810,672 ) 
 
Net Increase (Decrease) in Net Assets                 
   Applicaple to Common Shareholders                 
   Resulting from Operations    $ (1,131,515 )    $ (2,119,498 )    $ 5,184,474     $ 5,381,503  

See Notes to Financial Statements.

64


STATEMENTS OF OPERATIONS (unaudited) (continued)
For the six months ended June 30, 2006

 

   
Municipal
    Strategic     California Insured     California  
   
Target
        Municipal         Municipal 2008         Municipal 2018  
   
Term Trust
   
Trust
   
Term Trust
       
Term Trust
 
     
(BMN)
     
(BSD)
     
(BFC)
     
(BJZ)
 
 
Investment Income                 
   Interest income    $ 10,110,376     $ 4,467,633     $ 5,653,808     $ 3,728,017  
   Other Income from affiliates      6,733       843       1,656       655  
       Total investment income      10,117,109       4,468,476       5,655,464       3,728,672  
 
Expenses                 
   Investment advisory    846,402     521,469     464,326     303,750  
   Administration    169,281         132,665      
   Transfer agent    12,851     7,421     8,507     7,421  
   Custodian    73,635     38,767     26,690     17,013  
   Reports to shareholders    52,722     15,338     18,239     10,630  
   Directors/Trustees    23,471     7,938     11,255     7,369  
   Registration    13,853     8,212     8,201     8,201  
   Independent accountants    22,610     18,002     18,264     18,501  
   Legal    42,978     15,128     20,439     10,444  
   Insurance    19,573     5,943     9,062     5,174  
   Organization                 
   Auction agent    41,676     81,758     140,819     72,762  
   Deferred Trustees’ fees    6,733     843     1,656     655  
   Miscellaneous      79,437       12,509       20,924       15,684  
       Total expenses excluding interest expense    1,405,222     733,328     881,047     477,604  
           Interest expense            84              
           Total expenses    1,405,222     733,412     881,047     477,604  
           Less fees waived by Advisor        (130,367 )         
           Less fees paid indirectly      (68,233 )      (25,341 )      (10,840 )      (10,002 ) 
       Net expenses      1,336,989       577,704       870,207       467,602  
Net investment income      8,780,120       3,890,772       4,785,257       3,261,070  
 
Realized and Unrealized Gain (Loss)                 
Net realized gain (loss) on:                 
       Investments    4,222,366     (268,047 )        21,154  
       Futures and swaps            507,321             428,943  
      4,222,366       239,274             450,097  
Net change in unrealized appreciation/depreciation on:                 
       Investments    (6,594,990 )    (2,673,480 )    (4,392,476 )    (2,646,460 ) 
       Futures and swaps            724,496             609,835  
      (6,594,990 )      (1,948,984 )      (4,392,476 )      (2,036,625 ) 
Net loss      (2,372,624 )      (1,709,710 )      (4,392,476 )      (1,586,528 ) 
 
Dividends from Net Investment Income to                 
   Preferred Shareholders      (374,430 )      (988,861 )      (1,522,744 )      (817,217 ) 
 
Net Increase (Decrease) in Net Assets                 
   Applicable to Common Shareholders                 
   Resulting from Operations    $ 6,033,066     $ 1,192,201     $ (1,129,963 )    $ 857,325  


1 Commencement of investment operations for Long-Term Municipal Advantage Trust was February 28, 2006. This information includes the initial investment by BlackRock Funding, Inc. The other Trusts’ statements are for the six month period.

See Notes to Financial Statements.

65


 
                         
                     
Long-Term
 
  Florida Insured            Florida     New York Insured     New York    
Pennsylvania
    Municipal  
  Municipal 2008         Municipal 2020         Municipal 2008     Municipal 2018     Strategic     Advantage  
 
Term Trust
Term Trust
Term Trust
       
Term Trust
        Municipal Trust        
Trust
 
 
(BRF)
     
(BFO)
     
(BLN)
             (BLH)      
(BPS)
   
(BTA)1
 
 
$  4,174,781     $ 3,207,322     $ 6,163,661     $ 2,312,986     $ 1,190,129     $ 3,417,300  
  1,412       190       3,049       477       430        
  4,176,193       3,207,512       6,166,710       2,313,463       1,190,559       3,417,300  
 
  370,678     326,820     493,618     178,760     143,205     621,788  
  105,908         141,034              
  8,704     7,783     8,869     7,421     7,421     5,561  
  28,435     25,251     38,141     18,208     14,242     45,274  
  15,396     11,192     19,997     7,742     5,846     12,530  
  9,729     7,272     11,740     7,091     6,742     7,296  
  8,201     8,201     8,201     8,201     597     6,737  
  17,742     18,287     18,339     18,251     12,698     13,471  
  15,432     10,201     20,616     5,383     4,927     12,806  
  7,222     4,449     9,618     3,045     1,630     8,541  
                      39,000  
  107,989     63,457     142,072     42,441     26,527      
  1,412     191     3,049     477     430      
  18,058       15,022       21,585       12,195       9,472       5,898  
  714,906     498,126     936,879     309,215     233,737     778,902  
                                 
  714,906     498,126     936,879     309,215     233,737     778,902  
                  (35,801 )    (248,715 ) 
  (11,137 )      (10,771 )      (10,755 )      (9,709 )      (9,382 )      (28,592 ) 
  703,769       487,355       926,124       299,506       188,554       501,595  
  3,472,424       2,720,157       5,240,586       2,013,957       1,002,005       2,915,705  
 
 
      (10,506 )    (2,060 )        61,561     (745,805 ) 
        400,304             240,040       113,050        
        389,798       (2,060 )      240,040       174,611       (745,805 ) 
 
  (2,857,872 )    (2,012,091 )    (4,192,475 )    (1,167,926 )    (709,333 )    (3,548,914 ) 
        583,070             343,985       169,630       (5,390,680 ) 
  (2,857,872 )      (1,429,021 )      (4,192,475 )      (823,941 )      (539,703 )      (8,939,594 ) 
  (2,857,872 )      (1,039,223 )      (4,194,535 )      (583,901 )      (365,092 )      (9,685,399 ) 
 
  (1,271,367 )      (767,484 )      (1,626,675 )      (449,833 )      (273,578 )       
 
 
$  (656,815 )    $ 913,450     $ (580,624 )    $ 980,223     $ 363,335     $ (6,769,694 ) 

See Notes to Financial Statements.

66


STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended June 30, 2006 (unaudited) and the year ended December 31, 2005

 

   
Insured
Insured
   
Municipal 2008 Term Trust
     
Municipal Term Trust
   
(BRM)
(BMT)
     
2006
         
2005
     
2006
         
2005
 
Increase (Decrease) in Net Assets                 
   Applicable to Common Shareholders                 
Operations:                 
   Net investment income    $ 12,769,595     $ 24,641,861     $ 7,862,523     $ 15,273,997  
   Net realized gain (loss)    53,145     (2,400 )    3,340     226,726  
   Net change in unrealized appreciation/depreciation    (9,830,954 )    (20,407,431 )    (7,380,227 )    (10,475,635 ) 
   Dividends and distributions to preferred                 
       shareholders from: 
               
       Net investment income    (4,123,301 )    (5,856,777 )    (2,605,134 )    (3,769,757 ) 
       Net realized gains 
                      (94,031 ) 
Net increase (decrease) in net assets resulting                 
   from operations      (1,131,515 )      (1,624,747 )      (2,119,498 )      1,161,300  
Dividends and Distributions to Common                 
   Shareholders from:                 
   Net investment income    (10,814,822 )    (21,629,646 )    (6,989,176 )    (14,884,351 ) 
   Net realized gains                        (391,780 ) 
Total dividends and distributions      (10,814,822 )      (21,629,646 )      (6,989,176 )      (15,276,131 ) 
Capital Share Transactions:                 
   Reinvestment of common dividends                         
   Net proceeds from capital share transactions                         
Total increase      (11,946,337 )      (23,254,393 )      (9,108,674 )      (14,114,831 ) 
Net Assets Applicable to                 
   Common Shareholders                 
Beginning of period      432,405,837       455,660,230       272,014,631       286,129,462  
End of period    $ 420,459,500     $ 432,405,837     $ 262,905,957     $ 272,014,631  
End of period undistributed net investment income    $ 36,328,517     $ 38,497,045     $ 15,410,172     $ 17,141,959  

See Notes to Financial Statements.

67


 
                     
Municipal
Municipal
Municipal
Strategic
2018 Term Trust
     
2020 Term Trust
     
Target Term Trust
     
Municipal Trust
(BPK)
(BKK)
(BMN)
(BSD)
 
2006
         
2005
     
2006
         
2005
     
2006
         
2005
     
2006
         
2005
 
 
 
 
$ 9,170,865     $ 18,971,183     $ 11,109,431     $ 22,369,679     $ 8,780,120     $ 24,626,249     $ 3,890,772     $ 8,234,349  
1,400,178     (6,238,370 )    1,885,020     234,951     4,222,366     (15,190 )    239,274     2,599,022  
(3,203,695 )    2,205,469     (4,802,276 )    7,670,839     (6,594,990 )    (18,090,760 )    (1,948,984 )    (2,090,681 ) 
 
 
(2,182,874 )    (3,197,120 )    (2,810,672 )    (4,116,677 )    (374,430 )    (4,805,518 )    (988,861 )    (1,435,533 ) 
                                (9,199 )             
 
  5,184,474       11,741,162       5,381,503       26,158,792       6,033,066       1,705,582       1,192,201       7,307,157  
 
 
(7,206,337 )    (13,410,468 )    (8,044,060 )    (17,529,979 )    (8,480,441 )    (19,378,995 )    (3,988,844 )    (7,442,211 ) 
                                (44,957 )             
  (7,206,337 )      (13,410,468 )      (8,044,060 )      (17,529,979 )      (8,480,441 )      (19,423,952 )      (3,988,844 )      (7,442,211 ) 
 
                                      145,713       132,779  
                                      145,713       132,779  
  (2,021,863 )      (1,669,306 )      (2,662,557 )      8,628,813       (2,447,375 )      (17,718,370 )      (2,650,930 )      (2,275 ) 
 
 
  249,890,453       251,559,759       309,146,353       300,517,540       461,323,249       479,041,619       113,683,860       113,686,135  
$ 247,868,590     $ 249,890,453     $ 306,483,796     $ 309,146,353     $ 458,875,874     $ 461,323,249     $ 111,032,930     $ 113,683,860  
$ 17,712,147     $ 17,930,493     $ 1,848,954     $ 1,594,255     $ 34,004,297     $ 34,079,048     $ 3,886,625     $ 4,973,558  

See Notes to Financial Statements.

68


STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended June 30, 2006 (unaudited) and the year ended December 31, 2005

 

   
California Insured
California
   
Municipal 2008 Term Trust
     
Municipal 2018 Term Trust
   
(BFC)
(BJZ)
     
2006
         
2005
     
2006
         
2005
 
Increase (Decrease) in Net Assets                 
   Applicable to Common Shareholders                 
 
Operations:                 
   Net investment income    $ 4,785,257     $ 9,410,731     $ 3,261,070     $ 6,249,720  
   Net realized gain (loss)            450,097     (196,292 ) 
   Net change in unrealized appreciation/depreciation    (4,392,476 )    (8,530,659 )    (2,036,625 )    51,197  
   Dividends and distributions to preferred                 
       shareholders from:                 
       Net investment income    (1,522,744 )    (2,084,590 )    (817,217 )    (1,142,679 ) 
       Net realized gains            (12,763 )             
Net increase (decrease) in net assets resulting                 
   from operations      (1,129,963 )      (1,217,281 )      857,325       4,961,946  
 
Dividends and Distributions to Common                 
   Shareholders from:                 
   Net investment income    (4,019,740 )    (8,039,481 )    (2,364,138 )    (4,728,276 ) 
   Net realized gains            (54,533 )             
Total dividends and distributions      (4,019,740 )      (8,094,014 )      (2,364,138 )      (4,728,276 ) 
 
Capital Share Transactions:                 
Total increase (decrease)      (5,149,703 )      (9,311,295 )      (1,506,813 )      233,670  
 
Net Assets Applicable to                 
       Common Shareholders                 
Beginning of period      165,097,069       174,408,364       97,823,514       97,589,844  
End of period    $ 159,947,366     $ 165,097,069     $ 96,316,701     $ 97,823,514  
End of period undistributed (distributions in excess of)                 
   net investment income    $ 13,531,165     $ 14,288,392     $ 4,488,868     $ 4,409,153  

See Notes to Financial Statements.

69


Florida Insured
Florida Municipal
New York Insured
New York
Municipal 2008 Term Trust
     
2020 Term Trust
     
Municipal 2008 Term Trust
     
Municipal 2018 Term Trust
(BRF)
(BFO)
(BLN)
(BLH)
 
2006
         
2005
     
2006
         
2005
     
2006
         
2005
     
2006
         
2005
 
 
 
$ 3,472,424     $ 6,809,157     $ 2,720,157     $ 5,436,626     $ 5,240,586     $ 10,168,052     $ 2,013,957     $ 3,930,167  
    88,503     389,798     56,090     (2,060 )    27,602     240,040     171,272  
(2,857,872 )    (5,953,913 )    (1,429,021 )    1,629,993     (4,192,475 )    (8,711,114 )    (823,941 )    410,410  
 
(1,271,367 )    (1,908,083 )    (767,484 )    (1,090,002 )    (1,626,675 )    (2,262,552 )    (449,833 )    (619,624 ) 
        (16,356 )            (35,017 )            (14,078 )             
 
  (656,815 )      (980,692 )      913,450       5,997,690       (580,624 )      (792,090 )      980,223       3,892,225  
 
 
(2,394,451 )    (6,530,321 )    (1,856,360 )    (4,192,475 )    (4,031,166 )    (8,442,822 )    (1,335,138 )    (2,670,276 ) 
        (57,876 )            (320,969 )            (57,749 )             
  (2,394,451 )      (6,588,197 )      (1,856,360 )      (4,513,444 )      (4,031,166 )      (8,500,571 )      (1,335,138 )      (2,670,276 ) 
 
  (3,051,266 )      (7,568,889 )      (942,910 )      1,484,246       (4,611,790 )      (9,292,661 )      (354,915 )      1,221,949  
 
 
  130,973,515       138,542,404       82,875,491       81,391,245       177,131,546       186,424,207       58,525,392       57,303,443  
$ 127,922,249     $ 130,973,515     $ 81,932,581     $ 82,875,491     $ 172,519,756     $ 177,131,546     $ 58,170,477     $ 58,525,392  
$ 7,012,531     $ 7,205,925     $ 25,759     $ (70,554 )    $ 12,695,615     $ 13,112,870     $ 3,309,056     $ 3,080,070  

See Notes to Financial Statements.

70


STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six months ended June 30, 2006 (unaudited) and the year ended December 31, 2005

 

   
Pennsylvania
 
Long-Term
   
Strategic Municipal Trust
     
Municipal Advantage Trust
   
(BPS)
 
(BTA)
     
2006
         
2005
     
20061
 
Increase (Decrease) in Net Assets             
     Applicable to Common Shareholders             
Operations:             
   Net investment income    $ 1,002,005     $ 1,964,401     $ 2,915,705  
   Net realized gain (loss)    174,611     196,363     (745,805 ) 
   Net change in unrealized depreciation    (539,703 )    (1,047,091 )    (8,939,594 ) 
   Dividends to preferred shareholders             
       from net investment income 
    (273,578 )      (380,143 )       
   Net increase in net assets resulting             
       from operations      363,335       733,530       (6,769,694 ) 
Dividends to Common Shareholders from:             
   Net investment income      (913,909 )      (1,807,728 )      (2,738,229 ) 
Capital Share Transactions:             
   Net proceeds from the issuance of common shares            186,584,810  
   Net proceeds from the underwriters’ over-allotment             
       option exercised 
          3,216,375  
   Reinvestment of common dividends      22,019       17,613       65,063  
   Net proceeds from capital share transactions      22,019       17,613       189,866,248  
Total increase (decrease)      (528,555 )      (1,056,585 )      180,358,325  
Net Assets Applicable to             
   Common Shareholders             
Beginning of period      30,800,546       31,857,131        
End of period    $ 30,271,991     $ 30,800,546     $ 180,358,325  
End of period undistributed net investment income    $ 624,634     $ 810,116     $ 177,476  


1 Commencement of investment operations for Long-Term Municipal Advantage Trust was February 28, 2006. This information includes the initial investment by BlackRock Funding, Inc. The other Trusts’ statements are for the six month period.

See Notes to Financial Statements.

71


FINANCIAL HIGHLIGHTS

BlackRock Insured Municipal 2008 Term Trust (BRM)

  Six Months Ended                
 
June 30, 2006
 
Year Ended December 31, 
 
(unaudited)
 
2005
 
 
 
2004
 
 
 
2003
 
 
2002
 
 
 
2001
 
PER COMMON SHARE OPERATING                   
   PERFORMANCE:                   
Net asset value, beginning of period       
$
     15.89
 
$
16.75
 
$
17.38
 
 
$
17.62
 
$ 
16.80
 
 
$
16.62
 
Investment operations:                   
   Net investment income  0.47     0.91     0.97   1.07     1.26   1.33  
   Net realized and unrealized gain (loss)  (0.36 )    (0.75 )    (0.55 )  (0.07 )    0.53   (0.08 ) 
   Dividends and distributions to preferred                   
      shareholders from: 
                 
     Net investment income  (0.15 )    (0.22 )    (0.10 )  (0.08 )    (0.13 )  (0.27 ) 
     Net realized gain on investments 
 
 
 
 
 
 
(0.01
) 
 
(0.01
) 
 
(0.01
) 
 
 
Net increase (decrease) from                   
   investment operations 
 
(0.04
) 
 
 
(0.06
) 
 
 
0.31
 
 
0.91
 
 
1.65
 
 
0.98
 
Dividends and distributions to common                   
   shareholders from:                   
   Net investment income  (0.40 )    (0.80 )    (0.88 )  (1.02 )    (0.79 )  (0.80 ) 
   Net realized gain 
 
 
 
 
 
 
(0.06
) 
 
(0.13
) 
 
(0.04
) 
 
 
 
Total dividends and distributions  
 
(0.40
) 
 
 
(0.80
) 
 
 
(0.94
) 
 
(1.15
) 
 
(0.83
) 
 
 
(0.80
) 
Net asset value, end of period 
$
15.45
 
 
$
15.89
 
 
$
16.75
 
$
17.38
 
$ 
17.62
 
 
$
16.80
 
Market price, end of period 
$
15.16
 
 
$
15.30
 
 
$
16.31
 
$
17.27
 
$ 
16.58
 
 
$
15.70
 
TOTAL INVESTMENT RETURN1 
 
1.65
% 
 
(1.41
)% 
 
 
(0.09
)% 
 
11.29
% 
 
11.15
% 
 
11.06
% 
RATIOS TO AVERAGE NET ASSETS                   
   OF COMMON SHAREHOLDERS:2                   
Expenses after fees waived and paid indirectly   1.03 %3    1.03 %    0.99 %  0.98 %    0.98 %  1.01 % 
Expenses after fees waived and before fees                   
   paid indirectly  1.03 %3    1.03 %    1.00 %  0.98 %    0.98 %  1.02 % 
Expenses before fees waived                   
   and paid indirectly  1.03 %3    1.03 %    1.00 %  0.98 %    0.98 %  1.02 % 
Net investment income after fees waived and                   
   paid indirectly and before preferred share                   
   dividends  6.04 %3    5.58 %    5.66 %  6.03 %    7.34 %  7.87 % 
Preferred share dividends  1.95 %3    1.33 %    0.57 %  0.47 %    0.73 %  1.60 % 
Net investment income available to common                   
   shareholders  4.09 %3    4.25 %    5.09 %  5.56 %    6.61 %  6.27 % 
SUPPLEMENTAL DATA:                   
Average net assets of common                   
   shareholders (000)    $ 426,676     $ 441,822     $ 464,135     $ 480,887   $ 468,417     $ 460,153  
Portfolio turnover      3 %    4 %  18 %    23 %  3 % 
Net assets of common shareholders,                   
   end of period (000)    $ 420,460     $ 432,406     $ 455,660     $ 472,785   $ 479,390     $ 457,070  
Preferred shares outstanding (000)    $ 271,000     $ 271,000     $ 271,000     $ 271,000   $ 271,000     $ 271,000  
Asset coverage per preferred share,                   
   end of period    $ 63,799     $ 64,902     $ 67,041     $ 68,622   $ 69,235     $ 67,178  


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

2 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.

3 Annualized.

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

See Notes to Financial Statements.

72


FINANCIAL HIGHLIGHTS

BlackRock Insured Municipal Term Trust (BMT)

 
Six Months Ended
               
 
June 30, 2006
   
Year Ended December 31, 
 
 
(unaudited)
   
2005
 
 
2004
 
 
2003
 
 
2002
 
 
2001
 
PER COMMON SHARE OPERATING                   
   PERFORMANCE:                   
Net asset value, beginning of period        $ 10.51     $ 11.05     $ 11.40  
$
11.29  
$
10.85     $ 10.85  
Investment operations:                   
   Net investment income  0.30     0.59     0.67   0.73   0.81     0.89  
   Net realized and unrealized gain (loss)  (0.28 )    (0.38 )    (0.34 )  0.10   0.41     (0.12 ) 
   Dividends and distributions to preferred                   
         shareholders from:                   
         Net investment income  (0.10 )    (0.15 )    (0.07 )  (0.06 )  (0.08 )    (0.18 ) 
         Net realized gain on investments            1       1     1   (0.02 )      (0.01 ) 
Net increase (decrease) from                   
         investment operations    (0.08 )      0.06       0.26     0.77     1.12       0.58  
Dividends and distributions to common                   
   shareholders from:                   
   Net investment income  (0.27 )    (0.58 )    (0.58 )  (0.64 )  (0.58 )    (0.57 ) 
   Net realized gain          (0.02 )      (0.03 )    (0.02 )    (0.10 )      (0.02 ) 
Total dividends and distributions    (0.27 )      (0.60 )      (0.61 )    (0.66 )    (0.68 )      (0.59 ) 
Capital charges with respect to issuance of                   
   preferred shares                                 0.01  
 
Net asset value, end of period  $ 10.16     $ 10.51     $ 11.05   $ 11.40   $ 11.29     $ 10.85  
Market price, end of period  $ 9.39     $ 10.36     $ 11.30   $ 11.06   $ 10.94     $ 10.63  
TOTAL INVESTMENT RETURN2    (7.02 )%    (3.26 )%      7.92 %    7.28 %    9.51 %      7.73 % 
RATIOS TO AVERAGE NET ASSETS                   
   OF COMMON SHAREHOLDERS:3                   
Expenses after fees waived and paid indirectly 1.04 %4    1.04 %    1.02 %  1.02 %  1.05 %    1.06 % 
Expenses after fees waived and before fees                   
   paid indirectly  1.04 %4    1.05 %    1.02 %  1.02 %  1.06 %    1.06 % 
Expenses before fees waived and paid indirectly  1.04 %4    1.05 %    1.02 %  1.02 %  1.06 %    1.06 % 
Net investment income after fees waived and                   
   paid indirectly and before preferred share                   
   dividends  5.92 %4    5.48 %    6.04 %  6.36 %  7.32 %    8.12 % 
Preferred share dividends  1.96 %4    1.35 %    0.66 %  0.50 %  0.70 %    1.68 % 
Net investment income available to                   
   common shareholders  3.96 %4    4.13 %    5.38 %  5.86 %  6.62 %    6.44 % 
SUPPLEMENTAL DATA:                   
Average net assets of common                   
   shareholders (000)    $ 267,952     $ 278,492     $ 289,091   $   293,334   $   287,692     $ 284,390  
Portfolio turnover          1 %  11 %  36 %    7 % 
Net assets of common shareholders,                   
   end of period (000)    $ 262,906     $ 272,015     $ 286,129   $   295,028   $   292,371     $ 280,743  
Preferred shares outstanding (000)    $ 170,400     $ 170,400     $ 170,400   $   170,400   $   170,400     $ 170,400  
Asset coverage per preferred share,                   
   end of period    $ 63,601     $ 64,924     $ 66,987   $   68,288   $   67,895     $ 66,195  


1 Amounted to less than $0.01 per common share outstanding.

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

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

4 Annualized.

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

See Notes to Financial Statements.

73


FINANCIAL HIGHLIGHTS

BlackRock Municipal 2018 Term Trust (BPK)

       
   
   
       
For the period
Six Months Ended
   
      
    
            
October 30, 20011
 
June 30, 2006
 
 
Year Ended December 31,
 
through
 
(unaudited)
 
  
2005
 
 
2004
 
  
2003
 
 
2002
    
December 31, 20012
PER COMMON SHARE OPERATING 
   
   
   
       
 
   PERFORMANCE: 
   
   
   
       
 
Net asset value, beginning of period       
$ 
15.71    
$
15.81    
$ 
15.53    
$
14.66     $  13.66             
$ 
14.33 3
Investment operations: 
   
   
   
       
 
   Net investment income 
0.58    
1.19    
1.21    
1.21       1.17  
0.10  
   Net realized and unrealized gain (loss)  
(0.12 )   
(0.25 )   
(0.05 )   
0.52       0.73  
(0.55 ) 
   Dividends to preferred shareholders from 
   
   
   
       
 
         net investment income 
 
(0.14 )   
 
(0.20 )   
 
(0.10 )   
 
(0.08 )      (0.12 ) 
 
(0.01 ) 
Net increase (decrease) from investment 
   
   
   
       
 
   operations 
 
0.32    
 
0.74    
 
1.06    
 
1.65       1.78  
 
(0.46 ) 
Dividends to common shareholders from 
   
   
   
       
 
   net investment income 
 
(0.45 )   
 
(0.84 )   
 
(0.78 )   
 
(0.78 )      (0.78 ) 
 
(0.07 ) 
Capital charges with respect to issuance of: 
   
   
   
       
 
   Common shares 
   
   
   
       
(0.03 ) 
   Preferred shares 
 
   
 
   
 
   
 
       
 
(0.11 ) 
Total capital charges 
 
   
 
   
 
   
 
       
 
(0.14 ) 
Net asset value, end of period 
$ 
15.58    
$
15.71    
$ 
15.81    
$
15.53     $  14.66  
$ 
13.66  
Market price, end of period 
$ 
15.64    
$
15.71    
$ 
15.16    
$
14.36     $  13.43  
$ 
13.06  
TOTAL INVESTMENT RETURN4 
 
2.40 %   
 
9.35 %   
 
11.27 %   
 
12.92 %      8.84 % 
 
(12.51 )% 
RATIOS TO AVERAGE NET ASSETS 
   
   
   
       
 
   OF COMMON SHAREHOLDERS:5 
   
   
   
       
 
Expenses after fees waived and paid 
   
   
   
       
 
   indirectly 
0.90 %6   
0.91 %   
0.91 %   
0.93 %      0.92 % 
0.93 %6 
Expenses after fees waived and before 
   
   
   
       
 
   fees paid indirectly 
0.91 %6   
0.91 %   
0.91 %   
0.94 %      0.94 % 
0.93 %6 
Expenses before fees waived and paid 
   
   
   
       
 
   indirectly 
0.91 %6   
0.91 %   
0.91 %   
0.94 %      0.94 % 
0.93 %6 
Net investment income after fees waived 
   
   
   
       
 
   and paid indirectly and before preferred 
   
   
   
       
 
   share dividends 
7.40 %6   
7.53 %   
7.83 %   
8.21 %      8.14 % 
4.39 %6 
Preferred share dividends 
1.76 %6   
1.27 %   
0.64 %   
0.57 %      0.84 % 
0.28 %6 
Net investment income available to 
   
   
   
       
 
   common shareholders 
5.64 %6   
6.26 %   
7.19 %   
7.64 %      7.30 % 
4.11 %6 
SUPPLEMENTAL DATA: 
   
   
   
       
 
Average net assets of common 
   
   
   
       
 
   shareholders (000)   
$
249,782    
$
252,013    
$ 
246,602    
$
235,575     $  227,674      
$
206,486  
Portfolio turnover 
5 %   
15 %   
31 %   
15 %      53 % 
 
Net assets of common shareholders, 
   
   
   
       
 
   end of period (000)   
$
247,869    
$
249,890    
$ 
251,560    
$
247,032     $  233,233      
$
217,229  
Preferred shares outstanding (000)   
$
137,600    
$
137,600    
$ 
137,600    
$
137,600     $  137,600      
$
137,600  
Asset coverage per preferred share, 
   
   
   
       
 
   end of period   
$
70,038    
$
70,407    
$ 
70,736    
$
69,887     $  67,381      
$
64,485  


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

2 Calculated using the average shares outstanding method.

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

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

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

6 Annualized.

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

See Notes to Financial Statements.

74


FINANCIAL HIGHLIGHTS

BlackRock Municipal 2020 Term Trust (BKK)

                 
For the period
 
Six Months Ended
September 30, 20031
 
June 30, 2006
Year Ended December 31,
through
 
(unaudited)
     
 
2005
 
     
 
2004
 
     
December 31, 2003
PER COMMON SHARE OPERATING PERFORMANCE:                                
Net asset value, beginning of period    $  15.28     $ 14.85     $ 14.51           $  14.33 2
Investment operations:                       
   Net investment income      0.55     1.11     1.10         0.15  
   Net realized and unrealized gain (loss)      (0.14 )    0.39     0.28         0.25  
   Dividends to preferred shareholders from                       
         net investment income      (0.14 )    (0.20 )    (0.10 )        (0.01 ) 
Net increase from investment operations      0.27     1.30     1.28         0.39  
Dividends to common shareholders from                       
   net investment income      (0.40 )    (0.87 )    (0.94 )        (0.16 ) 
Capital charges with respect to issuance of                       
   Common shares                      (0.03 ) 
   Preferred shares                      (0.02 ) 
Total capital charges                      (0.05 ) 
Net asset value, end of period    $  15.15     $ 15.28     $ 14.85       $  14.51  
Market price, end of period    $  14.73     $ 14.00     $ 15.02       $  15.00  
TOTAL INVESTMENT RETURN3      8.04 %      (1.28 )%      6.63 %        1.05 % 
RATIOS TO AVERAGE NET ASSETS                       
   OF COMMON SHAREHOLDERS:4                       
Expenses after fees waived and paid indirectly      1.07 %5    1.08 %    1.09 %        0.85 %5 
Expenses after fees waived and before fees paid indirectly       1.08 %5    1.09 %    1.09 %        0.87 %5 
Expenses before fees waived and paid indirectly      1.08 %5    1.09 %    1.09 %        0.87 %5 
Net investment income after fees waived and paid indirectly                       
   and before preferred share dividends      7.23 %5    7.27 %    7.67 %        4.25 %5 
Preferred share dividends      1.83 %5    1.34 %    0.72 %        0.30 %5 
Net investment income available to common shareholders      5.40 %5    5.93 %    6.95 %        3.95 %5 
SUPPLEMENTAL DATA:                       
Average net assets of common shareholders (000)    $  309,930     $ 307,487     $ 290,212       $  279,827  
Portfolio turnover      7 %    14 %    51 %        17 % 
Net assets of common shareholders, end of period (000)    $  306,484     $ 309,146     $ 300,518       $  293,598  
Preferred shares outstanding (000)    $  177,600     $ 177,600     $ 177,600       $  177,600  
Asset coverage per preferred share, end of period    $  68,152     $ 68,527     $ 67,307       $  66,332  


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

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

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

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

5 Annualized.

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

See Notes to Financial Statements.

75


FINANCIAL HIGHLIGHTS

BlackRock Municipal Target Term Trust (BMN)

  Six Months Ended                                          
 
June 30, 2006
   
Year Ended December 31, 
 
 
(unaudited)
   
2005
 
 
2004
 
 
2003
 
 
2002
 
 
2001
 
PER COMMON SHARE OPERATING                         
   PERFORMANCE:                           
Net asset value, beginning of period        $  10.16     $ 10.55     $ 10.97     $ 11.16     $  10.57     $ 10.67  
Investment operations:                           
   Net investment income    0.19     0.54     0.57     0.62       0.70     0.83  
   Net realized and unrealized gain (loss)    (0.04 )    (0.39 )    (0.41 )    (0.16 )      0.62     (0.10 ) 
   Dividends and distributions to preferred                           
        shareholders from: 
                         
        Net investment income    (0.01 )    (0.11 )    (0.07 )    (0.06 )      (0.08 )    (0.17 ) 
        Net realized gain 
          1       1       1     (0.01 )      (0.02 ) 
Net increase from investment operations    0.14       0.04       0.09       0.40       1.23       0.54  
Dividends and distributions to common                           
   shareholders from:                           
   Net investment income    (0.19 )    (0.43 )    (0.50 )    (0.57 )      (0.60 )    (0.58 ) 
   Net realized gain            1     (0.01 )      (0.02 )      (0.04 )      (0.06 ) 
Total dividends and distributions       (0.19 )            (0.51 )    (0.59 )      (0.64 )      (0.64 ) 
Net asset value, end of period   $  10.11     $ 10.16     $ 10.55     $  10.97     $  11.16     $ 10.57  
Market price, end of period  $  9.93     $ 9.91     $ 10.49     $  10.95     $  11.01     $ 10.40  
TOTAL INVESTMENT RETURN2    2.09 %      (1.49 )%      0.39 %      4.99 %      12.28 %      11.16 % 
RATIOS TO AVERAGE NET ASSETS                           
   OF COMMON SHAREHOLDERS:3                           
Expenses after fees waived and paid indirectly     0.59 %4    0.89 %    0.96 %    0.96 %      0.97 %    0.96 % 
Expenses after fees waived and before fees                           
   paid indirectly    0.62 %4    0.90 %    0.97 %    0.96 %      0.97 %    0.98 % 
Expenses before fees waived and paid indirectly    0.62 %4    0.90 %    0.97 %    0.96 %      0.97 %    0.98 % 
Net investment income after fees waived and                           
   paid indirectly and before preferred share                           
   dividends    3.85 %4    5.26 %    5.29 %    5.60 %      6.44 %    7.73 % 
Preferred share dividends    0.16 %4    1.03 %    0.66 %    0.54 %      0.75 %    1.57 % 
Net investment income available to                           
   common shareholders    3.69 %4    4.23 %    4.63 %    5.06 %      5.69 %    6.16 % 
SUPPLEMENTAL DATA:                           
Average net assets of common                           
   shareholders (000)   
$ 
459,659     $ 467,934     $ 488,873     $ 504,660     $ 494,694     $ 489,251  
Portfolio turnover        4 %    2 %    4 %      18 %    42 % 
Net assets of common shareholders,                           
   end of period (000)   
$
458,876     $ 461,328     $ 479,042     $ 498,283     $ 506,952     $ 480,172  
Preferred shares outstanding (000)        $ 149,100     $ 299,100     $ 299,100     $ 299,100     $ 299,100  
Asset coverage per preferred share,                           
   end of period        $ 102,359     $ 65,048     $ 66,654     $ 67,379     $ 65,141  


1 Amounted to less than $0.01 per common share outstanding.

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

Past performance is not a guarantee of future results.

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

4 Annualized.

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

See Notes to Financial Statements.

76


FINANCIAL HIGHLIGHTS

BlackRock Strategic Municipal Trust (BSD)

  Six Months Ended                                              
 
June 30, 2006
Year Ended December 31, 
 
 
(unaudited)
 
2005
 
 
2004
 
 
2003
 
 
2002
 
 
2001
 
PER COMMON SHARE                             
   OPERATING PERFORMANCE:                                   
 
Net asset value, beginning of period  $  15.68     $ 15.70     $ 15.91     $  15.01     $  14.33     $ 14.75  
Investment operations:                             
   Net investment income    0.54     1.14     1.26       1.23       1.26     1.25  
   Net realized and unrealized gain (loss)    (0.24 )    0.07     (0.41 )      0.68       0.42     (0.58 ) 
   Dividends to preferred shareholders from                             
         net investment income 
  (0.14 )      (0.20 )      (0.10 )      (0.08 )      (0.12 )      (0.23 ) 
Net increase from investment operations    0.16       1.01       0.75       1.83       1.56       0.44  
Dividends to common shareholders from                             
         net investment income   (0.55 )      (1.03 )      (0.96 )      (0.93 )      (0.88 )      (0.86 ) 
Net asset value, end of period   $  15.29     $ 15.68     $ 15.70     $  15.91     $  15.01     $ 14.33  
Market price, end of period  $  17.09     $ 17.14     $ 14.52     $  14.69     $  13.78     $ 13.58  
TOTAL INVESTMENT RETURN1    3.07 %      26.08 %      5.59 %      13.75 %      8.03 %      5.32 % 
RATIOS TO AVERAGE NET ASSETS                             
   OF COMMON SHAREHOLDERS:2                             
Expenses after fees waived and paid indirectly     1.03 %3    0.97 %    0.89 %      0.91 %      0.98 %    0.91 % 
Expenses after fees waived and before fees                             
   paid indirectly    1.07 %3    0.98 %    0.90 %      0.91 %      0.99 %    0.92 % 
Expenses before fees waived and paid indirectly    1.31 %3    1.29 %    1.28 %      1.30 %      1.39 %    1.31 % 
Net investment income after fees waived and                             
   paid indirectly and before preferred share                             
   dividends    6.93 %3    7.23 %    8.04 %      8.09 %      8.54 %    8.40 % 
Preferred share dividends    1.76 %3    1.26 %    0.62 %      0.54 %      0.78 %    1.58 % 
Net investment income available to common                             
   shareholders    5.17 %3    5.97 %    7.42 %      7.55 %      7.76 %    6.82 % 
SUPPLEMENTAL DATA:                             
Average net assets of common                             
   shareholders (000)   
$
113,264     $ 113,860     $ 112,298     $ 110,385       $ 106,807     $ 107,381  
Portfolio turnover    41 %    96 %    23 %      8 %      13 %    4 % 
Net assets of common shareholders,                             
   end of period (000)   
$
111,033     $ 113,684     $ 113,686     $ 115,246       $ 108,721     $ 103,783  
Preferred shares outstanding (000)    $ 62,000     $ 62,000     $ 62,000     $ 62,000    
$
62,000     $ 62,000  
Asset coverage per preferred share,                             
   end of period  $  69,777     $ 70,847     $ 70,844     $ 71,476       $ 68,844     $ 66,855  


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

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

3 Annualized.

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

See Notes to Financial Statements.

77


FINANCIAL HIGHLIGHTS

BlackRock California Insured Municipal 2008 Term Trust (BFC)

  Six Months Ended                                            
 
June 30, 2006
   
Year Ended December 31, 
 
 
(unaudited)
   
2005
 
 
2004
 
 
2003
 
 
2002
 
 
2001
 
PER COMMON SHARE OPERATING       
 
   PERFORMANCE:                             
Net asset value, beginning of period        $  15.86     $ 16.76     $ 17.19     $  17.34     $  16.77     $ 16.72  
Investment operations:                             
   Net investment income    0.46     0.90     0.91       0.96       1.18     1.27  
   Net realized and unrealized gain (loss)    (0.41 )    (0.82 )    (0.44 )      0.06       0.48     (0.19 ) 
   Dividends and distributions to preferred                             
         shareholders from: 
                           
         Net investment income 
  (0.15 )    (0.20 )    (0.10 )      (0.07 )      (0.11 )    (0.24 ) 
         Net realized gain 
            1     1     (0.01 )      (0.03 )    (0.01 ) 
Net increase (decrease) from investment                             
   operations      (0.10 )      (0.12 )      0.37       0.94       1.52     0.83  
Dividends and distributions to common                             
   shareholders from:                             
   Net investment income    (0.39 )    (0.77 )    (0.77 )      (1.00 )      (0.81 )    (0.77 ) 
   Net realized gain            (0.01 )      (0.03 )      (0.09 )      (0.14 )      (0.02 ) 
Total dividends and distributions      (0.39 )      (0.78 )      (0.80 )      (1.09 )      (0.95 )      (0.79 ) 
Capital changes with respect to issuance of                             
   preferred shares                                  0.01  
Net asset value, end of period    $ 15.37     $ 15.86     $ 16.76     $  17.19     $  17.34     $ 16.77  
 
Market price, end of period    $ 15.24     $ 15.31     $ 16.25     $  17.19     $  17.34     $ 15.90  
TOTAL INVESTMENT RETURN2      2.06 %      (1.08 )%      (0.20 )%      10.90 %      9.56 %      7.06 % 
RATIOS TO AVERAGE NET ASSETS                             
   OF COMMON SHAREHOLDERS:3                             
Expenses after fees waived and paid indirectly     1.08 %4    1.07 %    1.05 %      1.04 %      1.05 %    1.08 % 
Expenses after fees waived and before fees                             
   paid indirectly    1.09 %4    1.08 %    1.05 %      1.04 %      1.06 %    1.09 % 
Expenses before fees waived and paid indirectly    1.09 %4    1.08 %    1.05 %      1.04 %      1.06 %    1.09 % 
Net investment income after fees waived and                             
   paid indirectly and before preferred share                             
   dividends    5.92 %4    5.55 %    5.37 %      5.51 %      6.91 %    7.57 % 
Preferred share dividends    1.88 %4    1.23 %    0.58 %      0.38 %      0.64 %    1.45 % 
Net investment income available to                             
   common shareholders    4.04 %4    4.32 %    4.79 %      5.13 %      6.27 %    6.12 % 
SUPPLEMENTAL DATA:                             
Average net assets of common                             
   shareholders (000)    $ 162,978     $ 169,564     $ 175,711     $ 180,408     $ 177,861     $ 176,424  
Portfolio turnover                  15 %      33 %    5 % 
Net assets of common shareholders,                             
   end of period (000)    $ 159,947     $ 165,097     $ 174,408     $ 178,854     $ 180,498     $ 174,487  
Preferred shares outstanding (000)    $ 104,550     $ 104,550     $ 104,550     $ 104,550     $ 104,550     $ 104,550  
Asset coverage per preferred share,                             
   end of period    $ 63,257     $ 64,497     $ 66,714     $ 67,776     $ 68,161     $ 66,735  


1 Amounted to less than $0.01 per common share outstanding.

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

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

4 Annualized.

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

See Notes to Financial Statements.

78


FINANCIAL HIGHLIGHTS

BlackRock California Municipal 2018 Term Trust (BJZ)

                       
For the period
 
Six Months Ended
 
October 30, 20011
 
June 30, 2006
Year Ended December 31,
   
through
(unaudited)
 
2005
 
 
2004
 
 
2003
 
 
2002
 
 
December 31, 20012
PER COMMON SHARE OPERATING                           
   PERFORMANCE:                           
Net asset value, beginning of period        $ 15.21     $ 15.17     $ 14.77     $ 14.59     $ 13.63           $ 14.33 3
Investment operations:                           
   Net investment income    0.51     0.97     1.00     1.04     1.03       0.09  
   Net realized and unrealized gain (loss)     (0.25 )    (0.01 )    0.21     (0.06 )    0.78       (0.57 ) 
   Dividends to preferred shareholders from                           
      net investment income 
    (0.13 )    (0.18 )      (0.08 )      (0.07 )      (0.11 )        (0.01 ) 
Net increase (decrease) from investment                           
   operations      0.13     0.78       1.13       0.91       1.70         (0.49 ) 
Dividends to common shareholders from                           
   net investment income      (0.37 )      (0.74 )      (0.73 )      (0.73 )      (0.74 )        (0.06 ) 
Capital changes with respect to issuance of:                           
   Common shares                          (0.03 ) 
   Preferred shares                                      (0.12 ) 
Total capital charges                                      (0.15 ) 
Net asset value, end of period    $ 14.97     $ 15.21     $ 15.17     $ 14.77     $ 14.59       $ 13.63  
Market price, end of period    $ 15.20     $ 15.19     $ 13.89     $ 13.42     $ 13.40       $ 12.85  
TOTAL INVESTMENT RETURN4      2.50 %      14.85 %      9.04 %      5.67 %      10.04 %        (13.94 )% 
RATIOS TO AVERAGE NET ASSETS                           
   OF COMMON SHAREHOLDERS:5                           
Expenses after fees waived and paid indirectly    0.97 %6    0.99 %    1.01 %    1.03 %    0.99 %      1.07 %6 
Expenses after fees waived and before fees                           
   paid indirectly    0.99 %6    1.01 %    1.02 %    1.03 %    1.03 %      1.07 %6 
Expenses before fees waived and                           
     paid indirectly    0.99 %6    1.01 %    1.02 %    1.03 %    1.03 %      1.07 %6 
Net investment income after fees waived and                           
   paid indirectly before preferred share                           
   dividends    6.74 %6    6.39 %    6.77 %    7.29 %    7.33 %      3.78 %6 
Preferred share dividends    1.69 %6    1.17 %    0.56 %    0.51 %    0.81 %      0.27 %6 
Net investment income available to                           
   common shareholders    5.05 %6    5.22 %    6.21 %    6.78 %    6.52 %      3.51 %6 
SUPPLEMENTAL DATA:                           
Average net assets of common                           
   shareholders (000)    $ 97,608     $ 97,869     $ 95,091     $ 92,324     $ 90,721       $ 82,906  
Portfolio turnover        9 %    9 %    9 %    42 %       
Net assets of common shareholders,                           
   end of period (000)    $ 96,317     $ 97,824     $ 97,590     $ 95,047     $ 93,844       $ 87,664  
Preferred shares outstanding (000)    $ 55,525     $ 55,525     $ 55,525     $ 55,528     $ 55,525       $ 55,525  
Asset coverage per preferred share,                           
   end of period    $ 68,376     $ 69,056     $ 68,945     $ 67,796     $ 67,254       $ 64,488  


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

2 Calculated using the average shares outstanding method.

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

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

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

6 Annualized.

The information in the above Financial Highlights represents the 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.

79


FINANCIAL HIGHLIGHTS

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

 
Six Months Ended
                                       
 
June 30, 2006
     
Year Ended December 31, 
 
(unaudited)
 
 
2005
 
 
2004
 
2003
 
 
2002
 
 
2001
 
PER COMMON SHARE OPERATING                           
   PERFORMANCE:                           
Net asset value, beginning of period        $  15.04     $ 15.91     $ 16.43   $  16.41     $  16.01     $ 15.84  
Investment operations:                           
   Net investment income    0.40     0.78     0.81     0.88       1.12     1.25  
   Net realized and unrealized gain (loss)    (0.32 )    (0.67 )    (0.41 )    0.13       0.36     (0.04 ) 
   Dividends and distributions to preferred                           
         shareholders from: 
                         
         Net investment income 
  (0.15 )    (0.22 )    (0.09 )    (0.06 )      (0.11 )    (0.25 ) 
         Net realized gain 
          1     (0.01 )    (0.02 )      (0.04 )      (0.01 ) 
Net increase (decrease) from investment                           
   operations    (0.07 )      (0.11 )      0.30     0.93       1.33       0.95  
Dividends and distributions to common                           
   shareholders from:                           
   Net investment income    (0.28 )    (0.75 )    (0.75 )    (0.81 )      (0.75 )    (0.75 ) 
   Net realized gain          (0.01 )      (0.07 )    (0.10 )      (0.18 )      (0.04 ) 
Total dividends and distributions    (0.28 )      (0.76 )      (0.82 )    (0.91 )      (0.93 )      (0.79 ) 
Capital changes with respect to issuance of                           
   preferred shares                                0.01  
Net asset value, end of period  $  14.69     $ 15.04     $ 15.91   $  16.43     $  16.41     $ 16.01  
Market price, end of period  $  13.96     $ 15.11     $ 15.85   $  16.19     $  15.91     $ 15.40  
TOTAL INVESTMENT RETURN2    (5.87 )%      0.10 %      3.05 %    7.64 %      9.61 %      15.90 % 
RATIOS TO AVERAGE NET ASSETS                           
   OF COMMON SHAREHOLDERS:3                           
Expenses after fees waived and paid indirectly     1.10 %4    1.09 %    1.07 %    1.05 %      1.05 %    1.10 % 
Expenses after fees waived and before fees                           
   paid indirectly    1.11 %4    1.10 %    1.07 %    1.05 %      1.05 %    1.10 % 
Expenses before fees waived and paid indirectly    1.11 %4    1.10 %    1.07 %    1.05 %      1.06 %    1.12 % 
Net investment income after fees waived and                           
   paid indirectly and before preferred share                           
   dividends    5.41 %4    5.08 %    5.03 %    5.34 %      6.90 %    7.75 % 
Preferred share dividends    1.98 %4    1.42 %    0.56 %    0.39 %      0.70 %    1.55 % 
Net investment income available to                           
   common shareholders    3.43 %4    3.66 %    4.47 %    4.95 %      6.20 %    6.20 % 
SUPPLEMENTAL DATA:                           
Average net assets of common                           
   shareholders (000)   
$
129,422     $ 134,104     $ 140,140    
$
144,071    
$
141,064     $ 140,004  
Portfolio turnover 
         
6 %      52 %    7 % 
Net assets of common shareholders, 
         
           
   end of period (000)   
$
127,922     $ 130,974     $ 138,542    
$
143,082    
$
142,920     $ 139,367  
Preferred shares outstanding (000)   
$
84,150     $ 84,150     $ 84,150    
$
84,169     $ 84,150     $ 84,150  
Asset coverage per preferred share, 
         
           
   end of period   
$
63,007     $ 63,912     $ 66,159    
$
67,514    
$
67,460     $ 66,406  


1 Amounted to less than $0.01 per common share outstanding.

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

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

4 Annualized.

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

See Notes to Financial Statements.

80


FINANCIAL HIGHLIGHTS

BlackRock Florida Municipal 2020 Term Trust (BFO)

                       
For the period
 
Six Months Ended
             
September 30, 20031
 
June 30, 2006
 
Year Ended December 31,
 
through
 
(unaudited)
   
2005
 
 
2004
 
 
December 31, 2003
PER COMMON SHARE OPERATING PERFORMANCE:                   
Net asset value, beginning of period        $ 14.90     $ 14.63     $ 14.50           $ 14.33 2
Investment operations:                   
   Net investment income    0.49     0.98     0.99       0.12  
   Net realized and unrealized gain (loss)    (0.19 )    0.31     0.14       0.26  
   Dividends to preferred shareholders from:                   
      Net investment income 
  (0.14 )    (0.20 )    (0.10 )      (0.01 ) 
      Net realized gains 
        (0.01 )               
Net increase from investment operations      0.16     1.08       1.03         0.37  
Dividends to common shareholders from:                   
   Net investment income    (0.33 )    (0.75 )    (0.90 )      (0.15 ) 
   Net realized gains          (0.06 )               
Total dividends and distributions      (0.33 )    (0.81 )      (0.90 )        (0.15 ) 
Capital changes with respect to issuance of:                   
   Common shares                  (0.03 ) 
   Preferred shares                        (0.02 ) 
Total capital charges                          (0.05 ) 
Net asset value, end of period    $ 14.73     $ 14.90     $ 14.63       $ 14.50  
Market price, end of period    $ 13.09     $ 13.35     $ 15.08       $ 15.39  
TOTAL INVESTMENT RETURN3      0.48 %      (6.76 )%      4.10 %        3.60 % 
RATIOS TO AVERAGE NET ASSETS                   
   OF COMMON SHAREHOLDERS:4                   
Expenses after fees waived and paid indirectly    1.19 %5    1.24 %    1.21 %      1.02 %5 
Expenses after fees waived and before fees paid indirectly     1.21 %5    1.26 %    1.21 %      1.02 %5 
Expenses before fees waived and paid indirectly    1.21 %5    1.26 %    1.25 %      1.05 %5 
Net investment income after fees waived and paid indirectly                   
   and before preferred share dividends    6.62 %5    6.57 %    6.93 %      3.45 %5 
Preferred share dividends    1.87 %5    1.32 %    0.68 %      0.30 %5 
Net investment income available to common shareholders    4.75 %5    5.25 %    6.25 %      3.15 %5 
SUPPLEMENTAL DATA:                   
Average net assets of common shareholders (000)    $ 82,912     $ 82,799     $ 79,810       $ 76,698  
Portfolio turnover            9 %       
Net assets of common shareholders, end of period (000)    $ 81,933     $ 82,875     $ 81,391       $ 80,655  
Preferred shares outstanding (000)    $ 48,900     $ 48,900     $ 48,900       $ 48,900  
Asset coverage per preferred share, end of period    $ 66,901     $ 67,379     $ 66,617       $ 66,237  


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

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

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

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

5 Annualized.

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

See Notes to Financial Statements.

81


FINANCIAL HIGHLIGHTS

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

Six Months                                        
 
Ended
   
 
June 30, 2006
 
Year Ended December 31, 
 
(unaudited)
   
2005
 
 
2004
 
 
2003
 
 
2002
 
 
2001
 
PER COMMON SHARE OPERATING                         
   PERFORMANCE:                                 
Net asset value, beginning of period        $  15.73     $ 16.56     $ 17.13     $  17.09     $  16.22     $ 16.17  
Investment operations:                           
   Net investment income    0.47     0.90     0.93       1.01       1.13   1.25  
   Net realized and unrealized gain (loss)    (0.37 )    (0.77 )    (0.53 )      (0.05 )      0.75   (0.17 ) 
   Dividends and distributions to preferred                           
         shareholders from: 
                         
         Net investment income 
  (0.14 )    (0.20 )    (0.10 )      (0.08 )      (0.11 )  (0.26 ) 
         Net realized gain 
          1     (0.01 )      (0.01 )      (0.03 )    (0.01 ) 
Net increase (decrease) from investment                           
   operations    (0.04 )      (0.07 )      0.29       0.87       1.74     0.81  
Dividends and distributions to common                           
   shareholders from:                           
   Net investment income    (0.36 )    (0.75 )    (0.81 )      (0.79 )      (0.75 )  (0.75 ) 
   Net realized gain          (0.01 )      (0.05 )      (0.04 )      (0.12 )    (0.02 ) 
Total dividends and distributions    (0.36 )      (0.76 )      (0.86 )      (0.83 )      (0.87 )    (0.77 ) 
Capital changes with respect to issuance of                           
   preferred shares                                0.01  
Net asset value, end of period  $  15.33     $ 15.73     $ 16.56     $  17.13     $ 17.09     $ 16.22  
Market price, end of period  $  14.76     $ 15.30     $ 16.09     $  16.96     $  16.22     $ 15.50  
TOTAL INVESTMENT RETURN2    (1.24 )%      (0.23 )%      0.03 %      9.88 %      10.47 %      10.48 % 
RATIOS TO AVERAGE NET ASSETS                           
   OF COMMON SHAREHOLDERS:3                           
Expenses after fees waived and paid indirectly     1.07 %4    1.05 %    1.03 %      1.03 %      1.04 %  1.10 % 
Expenses after fees waived and before fees                           
   paid indirectly    1.08 %4    1.06 %    1.03 %      1.03 %      1.05 %  1.10 % 
Expenses before fees waived and paid indirectly    1.08 %4    1.06 %    1.03 %      1.03 %      1.05 %  1.10 % 
Net investment income after fees waived and                           
   paid indirectly and before preferred share                           
   dividends    6.04 %4    5.62 %    5.51 %      5.85 %      6.75 %  7.59 % 
Preferred share dividends    1.88 %4    1.25 %    0.58 %      0.48 %      0.68 %  1.56 % 
Net investment income available to                           
   common shareholders    4.16 %4    4.37 %    4.93 %      5.37 %      6.07 %  6.03 % 
SUPPLEMENTAL DATA:                           
Average net assets of common                           
   shareholders (000)   
$
174,855       $ 180,876     $ 189,322     $192,958    
$
187,970     $ 184,600  
Portfolio turnover 
3 %    7 %          7 %   
31 %  9 % 
Net assets of common shareholders, 
                 
   
   end of period (000)   
$
172,520       $ 177,132     $ 186,424    
$
192,801    
$
192,337     $ 182,611  
Preferred shares outstanding (000)   
$
109,550       $ 109,550     $ 109,550    
$
109,550    
$
109,550     $ 109,550  
Asset coverage per preferred share, 
           
   
   
   end of period   
$
64,393       $ 65,433     $ 67,549    
$
69,000    
$
68,893     $ 66,674  


1 Amounted to less than $0.01 per common share outstanding.

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

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

4 Annualized.

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

See Notes to Financial Statements.

82


FINANCIAL HIGHLIGHTS

BlackRock New York Municipal 2018 Term Trust (BLH)

   
                   
For the period
Six Months
      October 30, 20011
 
Ended
     
 
through
June 30, 2006
 
Year Ended December 31,
 
December 31,
(unaudited)
 
2005
 
  
 
2004
 
  
 
2003
 
  
 
2002
 
 
20012
PER COMMON SHARE OPERATING                           
   PERFORMANCE:                                   
Net asset value, beginning of period    $ 16.11     $ 15.77     $ 15.53     $ 15.11     $ 13.58       $ 14.33 3
Investment operations:                           
   Net investment income    0.55     1.08     1.07     1.06     1.01       0.09  
   Net realized and unrealized gain (loss)     (0.16 )    0.17         0.18     1.37       (0.61 ) 
   Dividends to preferred shareholders from                           
         net investment income 
    (0.12 )      (0.17 )      (0.09 )      (0.08 )      (0.11 )        (0.01 ) 
Net increase (decrease) from investment                           
   operations      0.27       1.08       0.98       1.16       2.27         (0.53 ) 
Dividends to common shareholders from                           
   net investment income      (0.37 )      (0.74 )      (0.74 )      (0.74 )      (0.74 )        (0.06 ) 
Capital charges with respect to issuance of:                           
   Common shares                          (0.03 ) 
   Preferred shares                                      (0.13 ) 
Total capital charges                                      (0.16 ) 
Net asset value, end of period    $ 16.01     $ 16.11     $ 15.77     $ 15.53     $ 15.11       $ 13.58  
Market price, end of period    $ 15.27     $ 15.15     $ 14.82     $ 14.70     $ 13.46       $ 13.15  
TOTAL INVESTMENT RETURN4      3.21 %      7.28 %      5.94 %      14.94 %      7.96 %        (11.94 )% 
RATIOS TO AVERAGE NET ASSETS                           
   OF COMMON SHAREHOLDERS:5                           
Expenses after fees waived and paid indirectly    1.03 %6    1.06 %    1.11 %    1.12 %    1.13 %      1.15 %6 
Expenses after fees waived and before fees                           
     paid indirectly    1.06 %6    1.08 %    1.12 %    1.14 %    1.17 %      1.15 %6 
Expenses before fees waived and                           
   paid indirectly    1.06 %6    1.08 %    1.12 %    1.14 %    1.17 %      1.15 %6 
Net investment income after fees waived and                           
   paid indirectly and before preferred share                           
   dividends    6.92 %6    6.73 %    6.91 %    7.03 %    7.03 %      3.73 %6 
Preferred share dividends    1.54 %6    1.06 %    0.57 %    0.53 %    0.80 %      0.26 %6 
Net investment income available to                           
   common shareholders    5.38 %6    5.67 %    6.34 %    6.50 %    6.23 %      3.47 %6 
SUPPLEMENTAL DATA:                           
Average net assets of common                           
   shareholders (000)    $ 58,721     $ 58,434     $ 56,270     $ 54,510     $ 52,265       $ 47,959  
Portfolio turnover        12 %        11 %    41 %      1 % 
Net assets of common shareholders,                           
   end of period (000)    $ 58,170     $ 58,525     $ 57,303     $ 56,415     $ 54,881       $ 49,353  
Preferred shares outstanding (000)    $ 31,400     $ 31,400     $ 31,400     $ 31,400     $ 31,400       $ 31,400  
Asset coverage per preferred share,                           
   end of period    $ 71,321     $ 71,603     $ 70,626     $ 69,917     $ 68,702       $ 64,311  


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

2 Calculated using the average shares outstanding method.

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

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

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

6 Annualized.

The information in the above Financial Highlights represents the 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.

83


FINANCIAL HIGHLIGHTS

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

  Six Months                                      
 
Ended
     
 
June 30, 2006
 
Year Ended December 31,
 
(unaudited)
   
2005
 
 
2004
 
 
2003
 
 
2002
 
 
2001
 
PER COMMON SHARE                                 
   OPERATING PERFORMANCE:                             
Net asset value, beginning of period    $  15.27     $ 15.81     $ 16.09     $  15.61     $ 14.65     $ 14.62  
Investment operations:                             
   Net investment income      0.50     0.97     1.07       1.12     1.17     1.17  
   Net realized and unrealized gain (loss)      (0.18 )    (0.42 )    (0.37 )      0.30     0.73     (0.08 ) 
   Dividends to preferred shareholders from                             
         net investment income 
    (0.14 )      (0.19 )      (0.09 )      (0.07 )    (0.11 )      (0.24 ) 
Net increase from investment operations      0.18       0.36       0.61       1.35     1.79       0.85  
Dividends to common shareholders from                             
   net investment income      (0.45 )      (0.90 )      (0.89 )      (0.87 )    (0.83 )      (0.82 ) 
Net asset value, end of period    $  15.00     $ 15.27     $ 15.81     $  16.09     $ 15.61     $ 14.65  
Market price, end of period    $  16.95     $ 15.85     $ 15.70     $  15.12     $ 14.33     $ 14.03  
TOTAL INVESTMENT RETURN1      10.10 %      7.02 %      10.12 %      11.91 %      8.19 %      13.12 % 
RATIOS TO AVERAGE NET ASSETS OF                             
   COMMON SHAREHOLDERS:2                             
Expenses after fees waived and paid indirectly     1.24 %3    1.13 %    1.03 %      1.12 %    1.34 %    1.11 % 
Expenses after fees waived and before fees                             
   paid indirectly      1.30 %3    1.21 %    1.08 %      1.15 %    1.36 %    1.16 % 
Expenses before fees waived and paid indirectly      1.54 %3    1.52 %    1.47 %      1.54 %    1.75 %    1.55 % 
Net investment income after fees waived and                             
   paid indirectly and before preferred share                             
   dividends      6.60 %3    6.28 %    6.74 %      7.09 %    7.69 %    7.86 % 
Preferred share dividends      1.80 %3    1.22 %    0.59 %      0.46 %    0.71 %    1.63 % 
Net investment income available to                             
   common shareholders      4.80 %3    5.06 %    6.15 %      6.63 %    6.98 %    6.23 % 
SUPPLEMENTAL DATA:                             
Average net assets of common                             
   shareholders (000)   
$
30,631     $ 31,283     $ 31,989       $ 31,892     $ 30,545     $ 30,122  
Portfolio turnover   
5 %    8 %    5 %          7 %    16 % 
Net assets of common shareholders,   
                       
   end of period (000)   
$
30,272     $ 30,801     $ 31,857       $ 32,435     $ 31,454     $ 29,531  
Preferred shares outstanding (000)   
$
17,500     $ 17,500     $ 17,500       $ 17,500     $ 17,500     $ 17,500  
Asset coverage per preferred share,   
                       
   end of period   
$
68,250     $ 69,008     $ 70,513       $ 71,341     $ 69,939     $ 67,194  


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

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

3 Annualized.

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

See Notes to Financial Statements.

84


FINANCIAL HIGHLIGHTS

BlackRock Long-Term Municipal Advantage Trust (BTA)

 
For the period
 
February 28, 20061
 
through
 
June 30, 2006
 
(unaudited)
PER COMMON SHARE OPERATING PERFORMANCE:         
Net asset value, beginning of period    $  14.33 2  
Investment operations:         
   Net investment income 
    0.22    
   Net realized and unrealized loss 
    (0.73 )   
 Net decrease from investment operations      (0.51 )   
Dividends to common shareholders from         
   net investment income      (0.21 )   
Capital charges with respect to issuance of shares      (0.03 )   
Net asset value, end of period    $  13.58    
Market price, end of period    $  12.96    
TOTAL INVESTMENT RETURN3      (12.28 )%   
RATIOS TO AVERAGE NET ASSETS         
Expenses after fees waived and paid indirectly      1.19 %4   
Expenses after fees waived and before fees paid indirectly      1.25 %4   
Expenses before fees waived and paid indirectly      1.84 %4   
Net investment income after fees waived and paid indirectly      6.90 %4   
SUPPLEMENTAL DATA:         
Average net assets of common shareholders (000)    $  125,388    
Portfolio turnover      178 %   
Net assets of common shareholders, end of period (000)    $  180,358    


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

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

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

4 Annualized.

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

See Notes to Financial Statements.

85


NOTES TO FINANCIAL STATEMENTS

Note 1. Organization
& Accounting Policies

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

     Long-Term Municipal was organized on November 7, 2005 and had no transactions until January 4, 2006 when the Trust sold 9,704 common shares for $139,010 to BlackRock Funding, Inc. Investment operations for Long-Term Municipal commenced on February 28, 2006. Long-Term Municipal incurred organization costs which were deferred from the organization date until the commencement of operations.

     Under the Trusts’ organizational documents, their officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. In addition, in the normal course of business, the Trusts enter into contracts with their vendors and others that provide for general indemnifications. The Trusts’ maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Trusts. However, based on experience, the Trusts consider the risk of loss from such claims to be remote.

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

Investments Valuation: Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust’s Board of Trustees or Board of Directors, as the case may be (each, a “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from bond dealers, market transactions in comparable investments and various relationships between investments. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value per share. Any investments or other assets for which such current market quotations are not readily available are valued at fair value (“Fair Value Assets”) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.

     When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant.

Investment Transactions and Investment Income: Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of the specific identification method, generally first-in, first-out, for both financial reporting and Federal income tax purposes. 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.

Forward Starting Swaps: Forward starting swaps are an agreement for an interest rate swap asset or liability to be created or sold in the future. Interest rate swaps are an agreement in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. The Trusts close each forward starting swap before the accrual date specified in the agreement and therefore never enter into the interest rate swap underlying each forward starting swap.

86


     During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by “marking-to-market” to reflect the market value of the swap. When the swap is terminated, a Trust will record 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, if any.

     The Trusts are exposed to credit loss in the event of non-performance by the other party to the swap. However, the Advisor of the Trusts monitor swaps and do not anticipate non-performance by any counterparty.

Residual Interest Tax Exempt Securities: Long-Term Municipal Trust invests in highly leveraged residual interest tax exempt securities (“RITES”) that are issued from municipal tender option bond trusts. RITES represent residual interests in a special purpose trust formed by a third party sponsor for the purpose of holding municipal bonds purchased from Long-Term Municipal Trust or from other third parties. The special purpose trust typically sells two classes of interests: short-term floating rate interests, which are sold to third party investors, and residual interests, which Long-Term Municipal Trust would purchase. The short-term floating rate interests have first priority on the cash flow from the municipal bonds. Long-Term Municipal Trust is paid the residual cash flow from the special purpose trust. If Long-Term Municipal Trust is the initial seller of the municipal bonds to the special purpose trust, it receives the proceeds from the sale of the floating rate interests in the special purpose trust, less certain transaction costs. These proceeds generally would be used by Long-Term Municipal Trust to purchase additional municipal bonds or other investments permitted by Long-Term Municipal Trust’s investment policies. If Long-Term Municipal Trust ever purchases all or a portion of the short-term floating rate securities sold by the special purpose trust, it may surrender those short-term floating rate securities together with a proportionate amount of residual interests to the trustee of the special purpose trust in exchange for a proportionate amount of the municipal bonds owned by the special purpose trust. In addition, all voting rights and decisions to be made with respect to any other rights relating to the municipal bonds held in the special purpose trust are passed through to Long-Term Municipal Trust, as the holder of the residual interests. Long-Term Municipal Trust will recognize taxable capital gains (or losses) upon any sale of municipal bonds to the special purpose trust.

     RITES generally will underperform the market for fixed rate municipal bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, Long-Term Municipal Trust’s investment in RITES likely will adversely affect the Trust’s net asset value per share and income and distributions to shareholders. RITES generally are considered highly leveraged if the principal amount of the short-term floating rate interests issued by the related tender option bond trust exceed 50% of the principal amount of the municipal bonds owned by the tender option bond trust. The Long-Term Municipal Trust may invest in highly leveraged RITES and consequently may lose money in excess of the amount of its investment, up to an amount equal to the value of the municipal bonds underlying the RITES. The Long-Term Municipal Trust may invest in residual interests for the purpose of using economic leverage as a more flexible alternative to the issuance of preferred shares. With respect to highly leveraged RITES, the Long-Term Municipal Trust establishes and maintains a segregated account to cover any potential obligation to the liquidity provider, the Trust’s obligation to the liquidity provider pursuant to the agreement will not be considered a borrowing by the Trust; however, under circumstances in which the Long-Term Municipal Trust does not establish and maintain such a segregated account, such obligation will be considered a borrowing for the purpose of the Trust’s limitation on borrowings.

Segregation: In cases in which the 1940 Act as amended, and the interpretive positions of the Securities and Exchange Commission (the “Commission”) 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 Commission, designate on its books and records cash or other liquid 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 and net realized capital gains, if any, to shareholders. Therefore, no Federal income tax or excise tax provisions have been recorded.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss car-ryforwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 5.

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 and such differences may be material.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each 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. These amounts are shown on the Statement of Assets and Liabilities as “Investments in Affiliates”. This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.

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

Other: Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally prorated to the Trusts on the basis of relative net assets of all the BlackRock Closed-End Funds.

87


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

     Each Trust’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.35% for the 2008 Trusts, Insured Municipal Trust and Municipal Target Trust, 0.40% for the 2018 Trusts, 0.50% for the 2020 Trusts and 0.60% for the Strategic Trusts, of the Trust’s average weekly managed assets. “Managed assets” means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses on the Strategic Trusts as a percentage of managed assets as follows: 0.25% for the first five years of each of the Trust’s operations, 0.20% in year six, 0.15% in year seven, 0.10% in year eight and 0.05% in year nine.

     Long-Term Municipal’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate equal to 1.00% of the average weekly value of the Long-Term Municipal’s Net Assets. ‘‘Net Assets’’ means the total assets of the Trust minus the sum of accrued liabilities. The Advisor has voluntarily agreed to waive a portion of the investment advisory or other expenses of Long-Term Municipal in the amount of 0.40% of the average weekly value of the Long-Term Municipal’s Net Assets for the first five years of the Trust’s operations and for declining amounts for the following three years, 0.30% in year six, 0.20% in year seven and 0.10% in year eight.

     The Advisor pays BFM fees for its sub-advisory services.

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

     Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as 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 costs of employees that provide pricing, secondary market support and compliance services to each Trust. For the six months ended June 30, 2006, the Trusts reimbursed the Advisor the following amounts, which are included in miscellaneous expenses in the Statement of Operations:

Trust
   
Amount
 
Trust 
   
Amount
Insured Municipal 2008    $14,842    California 2018    $3,470 
Insured Municipal    9,450    Florida Insured 2008    4,644 
Municipal 2018    7,497    Florida 2020    2,534 
Municipal 2020    8,183    New York Insured 2008    6,230 
Municipal Target    17,376    New York 2018    1,752 
Municipal Strategic    3,461    Pennsylvania Strategic    1,177 
California Insured 2008    5,808    Long-Term Municipal    2,528 

     Pursuant to the terms of the custody agreement, each Trust received earning credits from its custodian for positive cash balances maintained, which are used to offset custody fees. These credits are shown on the Statement of Operations as “fees paid indirectly”.

Note 3. Portfolio
Investments

Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the six months ended June 30, 2006 were as follows:

Trust 
   
Purchases
Sales
          
Trust 
   
Purchases 
   
Sales
Insured Municipal 2008   
$ 
   
$ 
21,686,213   California 2018   
$ 
4,170,400    
$
 
Insured Municipal    1,003,264    4,968,264    Florida 2020        1,960,550 
Municipal 2018    32,579,004    21,748,465    New York Insured 2008  7,936,886      9,617,070 
Municipal 2020    34,239,622    51,461,383    Pennsylvania Strategic  7,383,830      1,733,953 
Municipal Target        355,071,716    Long-Term Municipal  436,379,954      250,422,031 
Municipal Strategic    79,527,018    68,848,868             

     There were no purchases or sales of U.S. government securities for the six months ended June 30, 2006.

     Details of open swap agreements at June 30, 2006 were as follows:

                   
Unrealized 
    Notional                 Termination     
Appreciation 
Trust
   
Amount (000)
 
Fixed Rate(a)
 
Floating Rate
 
Date
 
(Depreciation)
Municipal 2018 Term Trust    11,300,000    4.180 %    1-week BMA Municipal Swap Index    09/14/06    $ 295,011 
    8,400,000    4.258     1-week BMA Municipal Swap Index    03/20/07    321,772 
    11,250,000    4.263     1-week BMA Municipal Swap Index    12/27/06    326,167 
    9,750,000    4.266     1-week BMA Municipal Swap Index    11/03/06      152,382 
                    $ 1,095,332 

88


                     
Unrealized 
    Notional                 Termination     
Appreciation 
Trust
   
Amount (000)
 
Fixed Rate(a)
 
Floating Rate
 
Date
 
(Depreciation)
Municipal 2020 Term Trust    14,000,000      4.180 %    1-week BMA Municipal Swap Index    09/14/06    $  365,501 
    11,000,000      4.258     1-week BMA Municipal Swap Index    03/20/07      421,368 
    13,750,000      4.263     1-week BMA Municipal Swap Index    12/27/06      398,649 
    12,000,000      4.266     1-week BMA Municipal Swap Index    11/03/06      187,547 
                      $  1,373,064 
 
Strategic Municipal Trust    4,800,000      4.180 %    1-week BMA Municipal Swap Index    09/14/06    $  125,315 
    3,600,000      4.258     1-week BMA Municipal Swap Index    03/20/07      137,902 
    4,750,000      4.263     1-week BMA Municipal Swap Index    12/27/06      137,715 
    4,000,000      4.266     1-week BMA Municipal Swap Index    11/03/06      62,516 
                      $  463,447 
California Municipal                         
   2018 Term Trust    4,000,000      4.180 %    1-week BMA Municipal Swap Index    09/14/06    $  104,429 
    3,000,000      4.258     1-week BMA Municipal Swap Index    03/20/07      114,919 
    4,000,000      4.263     1-week BMA Municipal Swap Index    12/27/06      115,971 
    3,500,000      4.266     1-week BMA Municipal Swap Index    11/03/06      54,701 
                      $  390,019 
Florida Municipal                         
   2020 Term Trust    3,800,000      4.180 %    1-week BMA Municipal Swap Index    09/14/06    $  99,207 
    2,800,000      4.258     1-week BMA Municipal Swap Index    03/20/07      107,257 
    4,000,000      4.263     1-week BMA Municipal Swap Index    12/27/06      115,971 
    3,500,000      4.266     1-week BMA Municipal Swap Index    11/03/06      54,701 
                      $  377,136 
New York Insured Municipal                         
   2018 Term Trust 
  2,200,000      4.180 %    1-week BMA Municipal Swap Index    09/14/06    $  57,436 
    1,700,000      4.258     1-week BMA Municipal Swap Index    03/20/07      65,121 
    2,250,000      4.263     1-week BMA Municipal Swap Index    12/27/06      65,233 
    2,000,000      4.266     1-week BMA Municipal Swap Index    11/03/06      31,258 
                      $  219,048 
Pennsylvania Strategic                         
   Municipal Trust    1,100,000      4.180 %    1-week BMA Municipal Swap Index    09/14/06    $  28,718 
    1,000,000      4.258     1-week BMA Municipal Swap Index    03/20/07      38,306 
    1,000,000      4.263     1-week BMA Municipal Swap Index    12/27/06      28,993 
    1,000,000      4.266     1-week BMA Municipal Swap Index    11/03/06      15,629 
                      $  111,646 

(a) Trust pays fixed interest rate and receives floating rate.

Note 4. Income Tax
Information

The tax character of distributions paid during the year ended December 31, 2005 were as follows:

 
Tax-exempt 
 
Ordinary 
  Long-term  Total 
Distributions Paid From:   
Income 
 
Income 
  Capital Gains 
Distributions 
Insured Municipal 2008    $ 27,486,421    $ —    $ —      $27,486,421   
Insured Municipal  18,654,095        485,824    19,139,919   
Municipal 2018  16,607,588            16,607,588   
Municipal 2020  21,646,656            21,646,656   
Municipal Target  24,184,574        54,095    24,238,669   
Municipal Strategic  8,877,744            8,877,744   
California Insured 2008  10,124,030        67,337    10,191,367   
California 2018  5,870,955            5,870,955   
Florida Insured 2008  8,438,402        74,234    8,512,636   
Florida 2020  5,282,477    183,445    172,541    5,638,463   
New York Insured 2008  10,705,322        71,879    10,777,201   
New York 2018  3,289,900            3,289,900   
Pennsylvania Strategic  2,187,871            2,187,871   

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     For Federal income tax purposes, the following Trusts had capital loss carryforwards at December 31, 2005, the Trusts’ last tax year-end (other than the 2020 Trusts and Strategic Trusts, each of which has a tax year-end of June 30th). These amounts may be used to offset future realized capital gains, if any:

 
Capital Loss 
 
     
Capital Loss 
   
Trust   
Carryforward Amount 
 
Expires
           Trust     
Carryforward Amount 
     
Expires
Municipal 2018 
$
6,633,095    
2012 
  California 2018     
$
1,287,186     
2010 
Municipal 2020 
$
273,311    
2012 
       
1,444,501     
2012 
 
4,327,082    
2013 
       
588,861     
2013 
 
$
4,600,393    
       
$
3,320,548     
Municipal Target 
$
15,179    
2013 
  Florida 2020     
$
1,569,623     
2013 
Municipal Strategic   
$
78,019    
2008 
  New York 2018     
$
333,794     
2010 
 
1,802,842    
2009 
       
431,368     
2011 
 
760,288    
2010 
       
590,480     
2012 
 
2,477,786    
2012 
       
$
1,355,642     
 
1,056,584    
2013 
  Pennsylvania Strategic     
$
87,565     
2009 
 
$
6,175,519    
       
408,700     
2010 
       
       
747,259     
2013 
       
       
$
1,243,524     

     On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 (FIN 48) “Accounting for Uncertainty in Income Taxes”. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Trusts’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable; a reduction of deferred tax asset; an increase in deferred tax liability; or a combination thereof. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

Note 5. Capital

There are 200 million of $0.01 par value common shares authorized for each of the 2008 Trusts, Insured Municipal and Municipal Target. There are an unlimited number of $0.001 par value common shares authorized for each of the 2018 Trusts, 2020 Trusts, Strategic Trusts and Long-Term Municipal. Each Trust may classify or reclassify any unissued common shares into one or more series of preferred shares. At June 30, 2006, the common shares owned by affiliates of the Advisor of each Trust were as follows:

    Common 
    Shares 
Trust      Owned 
Municipal 2020    8,028 
Florida 2020    8,028 
Long-Term Municipal    9,704 

     During the six months ended June 30, 2006 and the year ended December 31, 2005, the following Trusts issued additional shares under their respective dividend reinvestment plan:

    Six Months Ended    Year Ended 
Trust      June 30, 2006    December 31, 2005 
Municipal Strategic    8,838    8,345 
Pennsylvania Strategic    1,434    1,140 
Long-Term Municipal    4,674   
    — 

     Long-Term Municipal, which commenced operation on February 28, 2006, issued 13,040,000 common shares under the initial public offering. An additional 225,000 shares were issued by the underwriters’ exercising their over-allotment option. Offering costs incurred in connection with the offering of common shares have been charged against the proceeds from the initial common share offering in the amount of $381,825.

     As of June 30, 2006, 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.

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Trust     
Series 
Shares 
  Trust     
Series 
 
Shares 
Insured Municipal 2008    T7   
4,660 
  Municipal Strategic    W7    2,480 
    R7   
2,060 
  California Insured 2008    W7    2,622 
    T28   
2,060 
      W28    1,560 
    R28   
2,060 
  California 2018    M7    2,221 
Insured Municipal    M72   
4,216 
  Florida Insured 2008    R7    3,366 
    M28   
2,600 
  Florida 2020    F7    1,956 
Municipal 2018    W7   
2,752 
  New York Insured 2008    F7    2,672 
    R7   
2,752 
      F28    1,710 
       
  New York 2018    T7    1,256 
Municipal 2020    M7   
2,368 
  Pennsylvania Strategic    W7    700 
    W7   
2,368 
           
    F7   
2,368 
           

     Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. Dividends on 28-day preferred shares are cumulative at a rate which is reset every 28 days based on the results of an auction. The dividend ranges on the preferred shares for each of the Trusts for the six months ended June 30, 2006 were as follows:

Trust      Series   
Low
   
High
  Average       Trust      Series    Low      High     Average
Insured Municipal 2008     T7    2.50 %    3.60 %  3.07 %    Municipal Strategic     W7    2.72 %    3.97 %    3.23 % 
     R7    2.25     3.70   2.99     California Insured 2008     W7    2.41     3.55     2.92  
     T28    2.82     4.00   3.28          W28    2.70     3.25     3.01  
     R28    2.95     3.45   3.11     California 2018     M7    2.19     3.50     2.95  
Insured Municipal     M7    2.25     3.75   3.07     Florida Insured 2008     R7    2.67     3.65     3.12  
     M28    2.57     3.45   3.13     Florida 2020     F7    2.78     3.95     3.20  
Municipal 2018     W7    2.80     4.00   3.24     New York Insured 2008     F7    2.35     3.55     2.89  
     R7    2.80     3.75   3.19          F28    2.90     3.36     3.14  
Municipal 2020     M7    2.85     3.75   3.23     New York 2018     T7    2.40     3.60     2.91  
     W7    2.60     4.00   3.20     Pennsylvania Strategic     W7    2.60     3.80     3.16  
     F7    2.75     3.94   3.21                      
Municipal Target     W7    2.75     2.90   2.80                      

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

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

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

     On February 7, 2005, Municipal Target Trust’s Board approved the redemption of all of the 3,000 W28 preferred shares outstanding in preparation for its termination on or about December 31, 2006. The shares were redeemed at a price of $25,000 per share (an aggregate price of $75,000,000) plus any accrued and unpaid dividends through the redemption date on March 10, 2005. On October 6, 2005, the Board approved the redemption of all of the 3,000 F7 preferred shares outstanding in preparation for its termination on or about December 31, 2006. The shares were redeemed at a price of $25,000 per share (an aggregate price of $75,000,000) plus any accrued and unpaid dividends through the redemption date on November 7, 2005. Management believes that the redemption of the W28 and F7 preferred shares will not affect the Municipal Target Trust’s ability to satisfy the terms of the remaining preferred shares outstanding.

     On January 3, 2006, Municipal Target Trust’s Board approved the redemption of all of the 5,964 W7 preferred shares outstanding in preparation for its termination on or about December 31, 2006. The shares were redeemed at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date on February 2, 2006 (an aggregate price of $149,180,037). Management believes that the redemption of the W7 preferred shares will not affect the Municipal Target Trust’s ability to satisfy the terms of the remaining preferred shares outstanding.

     On June 6, 2006, New York Insured 2008 Trust’s Board approved the redemption of all of the 1,710 F28 preferred shares outstanding in preparation for its termination on or about December 31, 2008. The shares were redeemed at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date on July 10, 2006 (an aggregate price of $42,750,000). Management believes that the redemption of the F28 preferred shares will not affect the New York Insured 2008 Trust’s ability to satisfy the terms of the remaining preferred shares outstanding.

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     On June 6, 2006, Municipal Insured 2008 Trust’s Board approved the redemption of all of the 2,060 R28 preferred shares outstanding in preparation for its termination on or about December 31, 2008. The shares were redeemed at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date on July 14, 2006 (an aggregate price of $51,500,000). On June 6, 2006, Municipal Insured 2008 Trust’s Board approved the redemption of all of the 2,060 T28 preferred shares outstanding in preparation for its termination on or about December 31, 2008. The shares were redeemed at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date on July 26, 2006 (an aggregate price of $51,500,000). Management believes that the redemption of the R28 and T28 preferred shares will not affect the Municipal Insured 2008 Trust’s ability to satisfy the terms of the remaining preferred shares outstanding.

     On June 6, 2006, Florida Insured 2008 Trust’s Board approved the redemption of 1,200 R7 preferred shares outstanding in preparation for its termination on or about December 31, 2008. The shares were redeemed at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date on July 7, 2006 (an aggregate price of $33,000,000). Management believes that the partial redemption of the R7 preferred shares will not affect the Florida Insured 2008 Trust’s ability to satisfy the terms of the remaining preferred shares outstanding.

Note 6. Dividends

Subsequent to June 30, 2006, the Board of each Trust declared dividends from undistributed earnings per common share payable August 1, 2006, to shareholders of record on July 14, 2006. The per share common dividends declared were:

  Common Dividend      Common Dividend 
Trust    Per Share    Trust    Per Share 
Insured Municipal 2008    $0.066250     California 2018    $0.061250  
Insured Municipal  0.030417    Florida Insured 2008  0.037500 
Municipal 2018  0.075500    Florida 2020  0.055625 
Municipal 2020  0.066250    New York Insured 2008  0.045600 
Municipal Target  0.031125    New York 2018  0.061250 
Municipal Strategic  0.091625    Pennsylvania Strategic  0.075500 
California Insured 2008  0.064375    Long-Term Municipal  0.068750 

The dividends declared on preferred shares for the period July 1, 2006 to July 31, 2006, for each of the Trusts were as follows:

        Dividends            Dividends 
Trust      Series    Declared    Trust      Series   
Declared 
Insured Municipal 2008    T7    312,313    California Insured 2008    W7    153,335 
    T28    158,023        W28    97,235 
    R7    136,475    California 2018    M7    134,837 
    R28    128,400    Florida Insured 2008    R7    163,068 
Insured Municipal    M7    288,796    Florida 2020    F7    171,795 
    M28    176,618    New York Insured 2008    F7    192,918 
Municipal 2018    W7    191,704        F28    108,226 
    R7    188,787    New York 2018    T7    75,862 
Municipal 2020    M7    165,168    Pennsylvania Strategic    W7    41,454 
    W7    163,037             
    F7    205,590             
Municipal Strategic    W7    171,194             

Note 7. Concentration
Risk

The Trusts concentrate their investments in securities issued by state agencies, other governmental entities and U.S. Territories. The Trusts are more susceptible to adverse financial, social, environmental, economic, regulatory and political factors that may affect these states, which could seriously affect the ability of these states and their municipal subdivisions to meet continuing obligations for principle and interest payments, than if the Trusts were not concentrated in securities issued by state agencies, other governmental entities and U.S. Territories.

     Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Portfolios of Investments.

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BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENTS

     Under the 1940 Act, the continuation of each Trust’s investment management and sub-advisory agreements is required to be approved annually by the Boards, including the Board members who are not “interested persons” of the Trusts or the Advisors as defined in the 1940 Act (“the independent Trustees”) Independent Directors. At a meeting held on May 23, 2006, the Boards of each Trust, including the Independent Directors, met to consider the annual continuation of each Trust’s agreements (the “Current Agreements”). The Boards first considered the annual continuation of each Current Agreement with out considering the impending Transaction (as defined below) between BlackRock, Inc. (“BlackRock”) and Merrill Lynch & Co., Inc. (“Merrill Lynch”) because the Current Agreements needed to be re-approved whether or not the Transaction closes. Accordingly, it was appropriate to review each Current Agreements with out considering the impending Transaction, and then to separately consider the impact of the transaction on the Current Agreements. BTA commenced investment operations in 2006. Accordingly, its investment advisory agreements were not subject to renewal at the portion of the meeting devoted to approving the Current Agreements. References to the “Trusts” in the section below captioned “Matters Considered by the by the Boards - The Current Agreements” should be understood to exclude BTA.

     At the meeting on May 23, 2006, the Board of each Trust, including the Independent Directors, unanimously approved the continuance of each current investment management agreement and, if applicable, current sub-advisory agreement for each Trust and then approved a new management agreement and a new sub-advisory agreement for each Trust.

Information Received by the Boards

     To assist each Board in its evaluation of the Current Agreements, the independent directors received information from BlackRock on or about April 22, 2006 which detailed, among other things: the organization, business lines and capabilities of the Advisors, including the responsibilities of various departments and key personnel and biographical information relating to key personnel; financial statements for BlackRock, Inc., The PNC Financial Services Group, Inc. and each Trust; the advisory and/or administrative fees paid by each Trust to BlackRock, Inc. and BlackRock Financial Management, Inc. (collectively the “Advisors”) including comparisons, compiled by an independent third party, with the management fees of funds with similar investment objectives (“Peers”); the profitability of BlackRock and certain industry profitability analyses for advisors to registered investment companies; the expenses of BlackRock in providing the various services; non-investment advisory reimbursements and “fallout” benefits to BlackRock; the expenses of each Trust, including comparisons of the respective Trust’s expense ratios (both before and after any fee waivers) with the expense ratios of its Peers; and each Trust’s performance for the past one-, three-, five-and ten-year periods, when applicable, as well as each Trust’s performance compared to its Peers. This information supplemented the information received by each Board throughout the year regarding each Trust’s performance, expense ratios, portfolio composition, trade execution and compliance.

     In addition to the foregoing materials, independent legal counsel to the Independent Directors provided a legal memorandum outlining, among other things, the duties of the Boards under the 1940 Act, as well as the general principles of relevant law in reviewing and approving advisory contracts, the requirements of the 1940 Act in such matters, an advisor’s fiduciary duty with respect to advisory agreements and compensation, and the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and factors to be considered by the boards in voting on advisory agreements.

     The Independent Directors reviewed this information and discussed it with independent counsel in executive session prior to the Board meeting. At the Board meeting on May 23, 2006, BlackRock made a presentation to and responded to additional questions from the Boards. After the presentations and after additional discussion the Boards considered each Current Agreement and, in consultation with independent counsel, reviewed the factors set out in judicial decisions and SEC statements relating to the renewal of the Current Agreements.

Matters Considered by the Boards

The Current Agreements

     In connection with their deliberations with respect to the Current Agreements, the Boards considered all factors they believed relevant with respect to each Trust, including the following: the nature, extent and quality of the services to be provided by the Advisors; the investment performance of each Trust; the costs of the services to be provided and profits to be realized by the Advisors and their affiliates from their relationship with the Trusts; the extent to which economies of scale would be realized as the BlackRock closed-end fund complex grows; and whether BlackRock realizes other benefits from its relationship with the Trusts.

     Nature and Quality of Investment Advisory and Sub-Advisory Services. In evaluating the nature, extent and quality of the Advisors’ services, the Boards reviewed information concerning the types of services that the Advisors provide and are expected to provide to each Trust, narrative and statistical information concerning each Trust’s performance record and how such performance compares to each Trust’s Peers, information describing BlackRock’s organization and its various departments, the experience and responsibilities of key personnel and available resources. The Boards noted the willingness of the personnel of BlackRock to engage in open, candid discussions with the Boards. The Boards further considered the quality of the Advisors’ investment process in making portfolio management decisions. Given the Boards’ experience with BlackRock, the Boards noted that they were familiar with and continue to have a good understanding of the organization, operations and personnel of BlackRock. The Boards also noted that the formation of Portfolio Review Committees and a Compliance Committee had helped the Boards to continue to improve their understanding of BlackRock’s organization, operations and personnel.

     In addition to advisory services, the Independent Directors considered the quality of the administrative or non-investment advisory services provided to the Trusts. In this regard, the Advisors provide each Trust with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Trusts) and officers and other personnel as are necessary for the operations of the respec-

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tive Trust. In addition to investment management services, the Advisors and their affiliates provide each Trust with services such as: preparing shareholder reports and communications, including annual and semi-annual financial statements and Trust websites; communications with analysts to support secondary market trading; assisting with daily accounting and pricing; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal and compliance support (such as helping to prepare proxy statements and responding to regulatory inquiries); and performing other Trust administrative tasks necessary for the operation of the respective Trust (such as tax reporting and fulfilling regulatory filing requirements). The Boards considered the Advisors’ policies and procedures for assuring compliance with applicable laws and regulations.

     Investment Performance of the Trusts. As previously noted, the Boards received performance information regarding each Trust and its Peers. Among other things, the Boards received materials reflecting each Trust’s historic performance and each Trust’s performance compared to its Peers. More specifically, each Trust’s one-, three-, five- and ten-year total returns (when applicable) were evaluated relative to its respective Peers (including the performance of individual Peers as well as the Peers’ average performance).

     The Boards reviewed a narrative analysis of the third-party Peer rankings that was prepared by BlackRock at the Boards’ request. The summary placed the Peer rankings into context by analyzing various factors that affect these comparisons. In evaluating the performance information, in certain limited instances, the Boards noted that the Peers most similar to a given Trust still would not adequately reflect such Trust’s investment objectives and strategies, thereby limiting the usefulness of the comparisons of such Trust’s performance with that of its Peers. The Boards determined that 11 Trusts (BRM, BMT, BPK, BKK, BMN, BFC, BJZ, BRF, BFO, BLN and BLH) with finite terms were not comparable to the Peers assigned to them by Lipper because, in accordance with their investment objectives, they manage their duration to reflect their finite lives. Because the portfolios of these 11 Trusts have a shorter duration than those of their Peers, they generally will have lower returns than their Peers, all other things being equal, in order to seek to return to investors their initial investment at the end of the life of these Trusts. The Boards also noted that each of these 11 Trusts performed at least as well as their benchmark in at least two periods in each of the past one-, three- and five-year periods or in all applicable periods if not all periods were applicable.

     Of the three other Trusts, the Boards noted that BSD had performed better than or equal to the median of its Peers and benchmarks in each of the past one-, three- and five-year periods. The Boards also noted that BPS had performed worse than the median of its Peers in at least one of these periods or worse than its applicable benchmark in more than one of these periods. The Boards considered the following reasons why BPS may have underperformed its Peers or their benchmarks, but also noted that it is often difficult to determine why a Trust underperformed a Peer because it is difficult to obtain perfect information with respect to the Peers.

     The Board of BPS noted that the Trust had under-performed its respective Peers or its benchmark for one or more periods. The Board considered that, with respect to a Trust investing primarily in municipal securities, the Advisor generally limits lengthening the duration of such Trust in response to changing interest rate environments because the shorter duration bonds owned by the Trust generally have yields higher than the coupons on longer duration bonds available in the market today. Accordingly, by retaining the short duration bonds currently in the portfolio of BPS, the Advisor believes it is better able to maintain the current dividend levels of BPS, albeit at the expense of a lower total return than they may have otherwise had with a longer duration portfolio. In addition, in a rising interest rate environment where the yield-curve is normal, the Advisor believes that BPS portfolio will have less interest rate risk than a portfolio of longer duration bonds.

     After considering this information, the Boards concluded that the performance of each Trust, in light of and after considering the other facts and circumstances applicable to each Trust, supports a conclusion that each Trust’s Current Agreement should be renewed.

     Fees and Expenses. In evaluating the management fees and expenses that a Trust is expected to bear, the Boards considered each Trust’s current management fee structure and the Trust’s expected expense ratios in absolute terms as well as relative to the fees and expense ratios of applicable Peers. In reviewing fees, the Boards, among other things, reviewed comparisons of each Trust’s gross management fees before and after any fee waivers and total expense ratios after any applicable waivers with those of the applicable Peers. The Boards also reviewed a narrative analysis of the Peer rankings that was prepared by an independent third party and summarized by BlackRock at the request of the Boards. This summary placed the rankings into context by analyzing various factors that affect these comparisons.

     The Boards noted that, of the 13 Trusts with investment advisory agreements subject to re-approval at the meeting, nine Trusts pay fees lower than or equal to the median fees paid by their Peers in each of (i) contractual management fees payable by a Trust prior to any fee waivers (“contractual management fees”), (ii) actual management fees paid by a Trust after taking into consideration fee waivers (“actual management fees”) and (c) total expenses. Of the remaining four Trusts: BLH and BFO had contractual management fees and total expenses better than or equal to the median of their Peers, but had actual management fees worse than the median; and BFC and BRM had contractual management fees better than or equal to the median of their Peers, but had actual management fees and total expenses worse then the median. The Board noted the following reasons why these four Trusts actual management fees or total expenses higher than the median of their Peers:

  • De minimis. The Boards of BLH, BFO, and BRM, noted that these Trusts pay actual management fees and/or incur total expenses that are no more than 4 bps (no more than 6%) higher than the median of their respective Peers. Nevertheless, all three of these Trusts have contractual management fees that are lower than or equal to the median of their peers. In addition, BLH and BFO incur total expenses that are lower than or equal to the median.

  • Other Factors. The Board noted that BFC has contractual management fees which are better or equal to the median of its peers. The Board of BFC noted that the Trust pays actual management fees and incurs total expenses that are worse than the median of its Peers, which may be attributable to the other funds temporarily waiving fees.

     The Boards also compared the management fees charged to the Trusts and other investment companies by the Advisors to the management fees the Advisors charge other types of clients (such as open-end investment companies and separately managed institutional accounts). With

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respect to open-end investment companies, the management fees charged to the Trusts generally were higher than those charged to the open-end investment companies. The Boards also noted that the Advisors provide the Trusts with certain services not provided to open-end funds, such as leverage management in connection with the issuance of preferred shares, stock exchange listing compliance requirements, rating agency compliance with respect to the leverage employed by the Trusts and secondary market support and other services not provided to the Trusts, such as monitoring of subscriptions and redemptions. With respect to separately managed institutional accounts, the management fees for such accounts were generally lower than those charged to the comparable Trusts. The Boards noted, however, the various services that are provided and the costs incurred by the Advisors in managing and operating the Trusts. For instance, the Advisors and their affiliates provide numerous services to the Trusts that are not provided to institutional accounts including, but not limited to: preparing shareholder reports and communications, including annual and semi-annual financial statements; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; income monitoring; expense budgeting; preparing proxy statements; and performing other Trust administrative tasks necessary for the operation of the respective Trust (such as tax reporting and fulfilling regulatory filing requirements). Further, the Boards noted the increased compliance requirements for the Trusts in light of new SEC regulations and other legislations. These services are generally not required to the same extent, if at all, for separate accounts.

     In connection with the Boards’ consideration of this information, the Boards reviewed the considerable investment management experience of the Advisors and considered the high level of investment management, administrative and other services provided by the Advisors. In light of these factors and the other facts and circumstances applicable to each Trust, the Boards concluded that the fees paid and expenses incurred by each Trust under its Current Agreements supports a conclusion that each Trust’s Current Agreements should be renewed.

     Profitability. The Directors also considered BlackRock’s profitability in conjunction with their review of fees. The Directors reviewed BlackRock’s revenues, expenses and profitability margins on a before and after-tax basis. In reviewing profitability, the Directors recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. The Directors also reviewed BlackRock’s assumptions and methodology of allocating expenses, noting the inherent limitations in allocating costs among various advisory products. The Boards also recognized that individual fund or product line profitability of other advisors is generally not publicly available.

     The Boards recognized that profitability may be affected by numerous factors including, among other things, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Boards considered BlackRock’s pre-tax profit margin compared to the pre-tax profitability of various publicly-traded investment management companies and/or investment management companies that publicly disclose some or all of their financial results. The comparison indicated that BlackRock’s pre-tax profitability was in the second quartile of the fifteen companies compared (including BlackRock), with the most profitable quartile being ranked first and the least profitable quartile being ranked fourth.

     In evaluating the reasonableness of the Advisors’ compensation, the Boards also considered any other revenues paid to the Advisors, including partial reimbursements paid to the Advisors for certain non-investment advisory services. The Boards noted that these payments were less than the Advisors’ costs for providing these services. The Boards also considered indirect benefits that the Advisors and their affiliates are expected to receive that are attributable to their management of the Trusts.

     In reviewing each Trust’s fees and expenses, the Boards examined the potential benefits of economies of scale, and whether any economies of scale should be reflected in the Trusts’ fee structures, for example through the use of breakpoints. In this connection, the Boards reviewed information provided by BlackRock, noting that most closed-end fund complexes do not have fund-level breakpoints, as closed-end funds generally do not experience substantial growth after their initial public offering and each fund is managed independently consistent with its own investment objectives. The information also revealed that only one closed-end fund complex used a complex-level breakpoint structure for advisory fees, and that this complex generally is homogeneous with regard to the types of funds managed and is about three times as large as the Trusts’ complex.

     The Boards concluded that BlackRock’s profitability, in light of all the other facts and circumstances applicable to each Trust, supports a conclusion that each Trust’s Current Agreements should be renewed.

     Other Benefits. In evaluating fees, the Boards also considered indirect benefits or profits the Advisors or their affiliates may receive as a result of their relationships with the Trusts. The Directors, including the Independent Directors, considered the intangible benefits that accrue to the Advisors and their affiliates by virtue of their relationships with the Trusts, including potential benefits accruing to the Advisors and their affiliates as a result of participating in offerings of the Trusts’ shares, potentially stronger relationships with members of the broker-dealer community, increased name recognition of the Advisors and their affiliates, enhanced sales of other investment funds and products sponsored by the Advisors and their affiliates and increased assets under management which may increase the benefits realized by the Advisors from soft dollar arrangements with broker-dealers. The Boards also considered the unquantifiable nature of these potential benefits.

     Miscellaneous. During the Boards’ deliberations in connection with the Current Agreements, the Boards were aware that the Advisor pays compensation, out of its own assets, to the lead underwriter and to certain qualifying underwriters of many of its closed-end funds, and to employees of the Advisors’ affiliates that participated in the offering of such funds. The Boards considered whether the management fee met applicable standards in light of the services provided by the Advisors, without regard to whether the Advisors ultimately pay any portion of the anticipated compensation to the underwriters.

     Conclusion with respect to the Current Agreements. In reviewing the Current Agreements without considering the impending Transaction, the Directors did not identify any single factor discussed above as all-important or controlling. The Directors, including the Independent Directors, unanimously determined that each of the factors described above, in light of all the other factors and all of the facts and circumstances applicable to each respective Trust, was acceptable for each Trust and supported the Directors’ conclusion that the terms of each Current Agreement were fair and reasonable, that the respective Trust’s fees are reasonable in light of the services provided to the respective Trust, and that each Current Agreement should be approved.

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The Transaction

     On February 15, 2006, BlackRock and Merrill Lynch announced that they had entered into an agreement pursuant to which Merrill Lynch would contribute its investment management business, Merrill Lynch Investment Managers (“MLIM”), to BlackRock, one of the largest publicly traded investment management firms in the United States, to form a new asset management company that will be one of the world’s preeminent, diversified global money management organizations with approximately $1 trillion in assets under management (the “Transaction”). Based in New York, BlackRock currently manages assets for institutional and individual investors worldwide through a variety of equity, fixed income, cash management and alternative investment products. The new company will operate under the BlackRock name and be governed by a board of directors with a majority of independent members. The new company will offer a full range of equity, fixed income, cash management and alternative investment products with strong representation in both retail and institutional channels, in the U.S. and in non-U.S. markets. It will have over 4,500 employees in 18 countries and a major presence in most key markets, including the United States, the United Kingdom, Asia, Australia, the Middle East and Europe. Merrill Lynch will own no more than 49.8% of the total issued and outstanding capital stock of the new company and it will own no more than 45% of the new company’s common stock, and The PNC Financial Services Group, Inc. (“PNC”), which currently holds a majority interest in BlackRock, will retain approximately 34% of the new company’s common stock. Each of Merrill Lynch and PNC has agreed that it will vote all of its shares on all matters in accordance with the recommendation of BlackRock’s board. Completion of the Transaction is subject to various regulatory approvals, client consents, approval by BlackRock shareholders and customary conditions. The Transaction has been approved by the boards of directors of Merrill Lynch, BlackRock and PNC and is expected to close at the end of the third quarter of 2006.

     Although BlackRock has informed the Boards that it does not believe the Transaction will be an assignment of the Current Agreements under the 1940 Act, it is possible that the Transaction could be determined to be such an assignment, which would result in the automatic termination of each Current Agreement. Due to this uncertainty, each Trust submitted its post-Transaction management agreements and sub-advisory agreements (collectively the “New Agreements”) to shareholders to prevent any potential disruption in the Advisor’s ability to continue to provide services to the Trusts after completion of the Transaction. The New Agreements will be effective upon the completion of the Transaction or, if the Transaction is not completed, at such time as the Boards determine.

     Consequences of the Transaction. On February 23, 2006, April 21, 2006 and May 23, 2006, members of BlackRock management made presentations on the Transaction to the Boards and the Boards discussed with management and amongst themselves management’s general plans and intentions regarding the Trusts, including the preservation, strengthening and growth of BlackRock’s business and its combination with MLIM’s business. The Boards also inquired about the plans for and anticipated roles and responsibilities of certain BlackRock employees and officers after the Transaction. The Independent Directors also met in executive session to discuss the Transaction. After these meetings, BlackRock continued to update the Boards with respect to its plans to integrate the operations of BlackRock and MLIM and the potential impact of those plans on the Trusts as those plans were further developed.

     After considering and approving the Current Agreements, the Boards (including the Independent Directors) then considered the information received at these meetings and the consequences of the Transaction to each Trust, including, among other things:

       (i) that BlackRock, MLIM and their investment advisory subsidiaries are experienced and respected asset management firms, and that BlackRock advised the Boards that in connection with the closing of the Transaction, it intends to take steps to combine the investment management operations of BlackRock and MLIM, which, among other things, may involve sharing common systems and procedures, employees (including portfolio managers), investment and trading platforms, and other resources. Furthermore, it is expected that these combination processes will result in changes to portfolio managers or portfolio management teams for each of the Trusts, subject to Board consent and appropriate notice to shareholders;
   
       (ii) that BlackRock advised the Boards that following the Transaction, there is not expected to be any diminution in the nature, quality and extent of services provided to the Trusts and their shareholders by the Advisors, including compliance services;
   
       (iii) that BlackRock advised the Boards that it has no present intention to alter the expense waivers and reimbursements currently in effect for certain of the Trusts;
   
       (iv) the experience, expertise, resources and performance of MLIM that will be contributed to BlackRock after the closing of the Transaction and their anticipated impact on BlackRock’s ability to manage the Trusts;
   
       (v) that BlackRock and MLIM would derive benefits from the Transaction and that as a result, they have a financial interest in the matters that were being considered;
   
       (vi) the potential effects of regulatory restrictions on the Trusts as a result of Merrill Lynch’s equity stake in BlackRock after the Transaction;
   
       (vii) the fact that each Trust’s aggregate investment advisory and sub-advisory fees will not increase by virtue of the New Agreements;
   
       (viii) the terms of the New Agreements, including the differences from the Current Agreements;
   
       (ix) that the Trusts would not bear the costs of obtaining shareholder approval of the New Agreements; and
   
       (x) that BlackRock and Merrill Lynch have agreed to conduct their respective businesses (and use reasonable best efforts to cause their respective affiliates to conduct their respective businesses) to enable the conditions of Section 15(f) to be true in relation to any registered investment companies advised by MLIM and registered under the 1940 Act and have agreed to the same conduct in relation to the BlackRock registered investment companies to the extent it is determined the Transaction is an assignment under the 1940 Act.

     Nature and Quality of Investment Advisory and Sub-Advisory Services. The Boards considered the expected impact of the Transaction on the operations, facilities, organization and personnel of the Advisors, the potential implications of regulatory restrictions on the Trusts following the

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Transaction and the ability of the Advisors to perform their duties after the Transaction. The Boards considered that the services to be provided and the standard of care under the New Agreements are the same as under the Current Agreements. The Boards also considered statements by management of BlackRock that, in connection with integrating the operations of the Advisors and MLIM, the objective was to preserve the best of both organizations in order to enhance BlackRock’s ability to provide investment advisory services following completion of the Transaction.

     The Boards noted that it is impossible to predict with certainty the impact of the Transaction on the nature, quality and extent of the services provided by the Advisors to the Trusts, but concluded based on the information currently available and in light of all of the current facts and circumstances that the Transaction is likely to provide the Advisors with additional resources with which to serve the Trusts and was not expected to adversely affect the nature, quality and extent of the services to be provided to the Trusts and their shareholders by the Advisors and was not expected to materially adversely affect the ability of the Advisors to provide those services.

     BlackRock currently intends that the portfolio managers for the Trusts will remain the same following completion of the Transaction, except that BlackRock intends to propose to the Boards that, following completion of the Transaction, a team primarily comprised of MLIM professionals will manage the portfolios of those Trusts that invest primarily in municipal securities. BlackRock informed the Boards of this proposal at the May 23rd meetings of the Boards and discussed with the Boards the reasons for this proposed change. BlackRock also informed the Boards that it intends to provide additional information to the Boards with respect to this proposed change at the August meetings of the Boards for the Boards’ consideration at that time. If the Boards approve this proposed change, the following team members generally would oversee investment policies for those Trusts that invest primarily in municipal securities. This team is one of the largest managers of municipal debt with approximately $67.5 billion in assets under management as of March 31, 2006, including 31 closed-end investment companies with $16.2 billion in asssets, $8 billion in retail separate accounts and nine open-end mutual funds with $4.1 billion in assets.

 
  • Robert A. DiMella. Mr. DiMella has been a Managing Director of MLIM since 2004 and was a Director from 2002 to 2004. He has been a portfolio manager with MLIM since 1993.

     
     
  • William R. Bock. Mr. Bock has been a Director of MLIM since 2005, and was a Vice President from 1989 to 2005. Mr. Bock has been a portfolio manager with MLIM since 1989.

     
     
  • Timothy T. Browse. Mr. Browse has been a Vice President (Municipal Tax-Exempt Fund Management) of and portfolio manager with MLIM since 2004. He was also Vice President, Portfolio Manager and team leader of the Municipal Investments Team with Lord Abbett & Co. from 2000 to 2003.

     
     
  • Theodore R. Jaeckel, Jr., CFA. Mr. Jaeckel has been a Director (Municipal Tax-Exempt Fund Management) of MLIM since 1997. Mr. Jaeckel has been a portfolio manager with MLIM since 1991.

     
     
  • Walter O’Connor. Mr. O’Connor has been a Managing Director of MLIM since 2003, was a Director of MLIM from 1998 to 2003 and was a Vice President of MLIM from 1992 to 1998. He has been a portfolio manager with MLIM since 1991.

     
     
  • Robert D. Sneeden. Mr. Sneeden has been a Vice President of MLIM since 1998 and was an Assistant Vice President from 1994 to 1998. Mr. Sneeden has been a portfolio manager with MLIM since 1994.

         If the respective Boards do not approve the proposed change, they intend to consider what other course of action would be best for the Trusts that primarily invest in municipal securities and their shareholders.

         Investment Performance of the Trusts. The Boards examined MLIM’s investment performance with respect to its closed-end funds. The Boards noted the Advisors’ and MLIM’s considerable investment management experience and capabilities. The Boards considered this information together with the level of services expected to be provided to the Trusts. Although the Boards noted that it is impossible to predict the effect, if any, that consummation of the Transaction would have on the future performance of the Trusts, the Boards concluded that the information currently available, in light of all of the current facts and circumstances, supported approving the New Agreements.

         Fees. The Boards noted that the fees payable by the Trusts under the New Agreements are identical to the fees payable under the Current Agreements. The Boards also considered the fees paid by the MLIM closed-end funds. In light of (i) the Boards’ approval of the fees paid by each Trust pursuant to the Current Agreements earlier at the May 23rd meeting, (ii) the fact that the Transaction would cause no change to the fees paid by any Trust and (iii) the Boards’ earlier conclusion with respect to the services expected to be provided to the Trusts under the New Agreements, the Boards concluded that the fee structure under the New Agreements was reasonable.

         Profitability. Management of the Advisors stated to the Boards that, following the Transaction, the current intention is to continue to determine profitability and report profitability to the Boards in the same way as they did prior to the Transaction, subject to management’s desire to preserve the best practices of MLIM. Management of the Advisors stated that any changes in the methods used to determine profitability and report profitability to the Boards would be discussed with the Boards. The Boards considered the potential for increased economies of scale as a result of the Transaction and whether any economies of scale should be reflected in the Trusts’ fee structures. The Boards also considered that the process of integrating the operations of the Advisors and MLIM was in the early stages and that considerable expense would be incurred in connection with integrating such operations, all of which made it difficult to conclude that economies of scale would be realized as a result of the Transaction. In light of the foregoing, the Boards concluded that, at this time, no changes were necessary to the fee structure of the Trusts as a result of the Transaction.

         Other Benefits. In evaluating ancillary benefits to be received by the Advisors and their affiliates under the New Agreements, the Boards considered whether the Transaction would have an impact on the ancillary benefits received by the Advisors by virtue of the Current Agreements. Based on its review of the materials provided, including materials received in connection with its approval of the continuance of each Current Agreement earlier at the May 23rd meetings of the Boards and its discussions with the Advisors, the Boards noted that such benefits were difficult to quantify with certainty at this time and indicated that it would continue to evaluate them going forward.

         Conclusion with respect to the New Agreements. The Boards did not identify any single consequence of the Transaction discussed above as all-important or controlling. The Boards, including a majority of the Independent Directors, unanimously approved each New Agreement and unanimously recommend its approval by shareholders of each respective Trust in order to assure continuity of investment advisory services to the Trusts after the Transaction.

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    DIVIDEND REINVESTMENT PLANS

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

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

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

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

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

         Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.

    ADDITIONAL INFORMATION

    60 Day Notice

         We are required by the Internal Revenue Code to advise you within 60 days of a Trust’s tax year-end as to the Federal tax status of dividends paid by the Trusts during such tax year. Accordingly, during the tax year-end June 30, 2006, all dividends paid by Municipal 2020 Term Trust, Strategic Municipal Trust, Florida Municipal 2020 Term Trust and Pennsylvania Strategic Municipal Trust were federally tax-exempt interest dividends.

         The Joint Annual Meeting of Shareholders was held on May 23, 2006 for shareholders of record as of February 28, 2006, to elect a certain number of Directors/Trustees for each of the following Trusts to three year terms expiring in 2009:

         Elected the Class I Directors/Trustees as follows:

       
    Richard E. Cavanagh
     
    R. Glenn Hubbard 
       
    Votes For
      Votes Withheld   
    Votes For 
      Votes Withheld 
    Insured Municipal 2008    25,295,200      631,931      25,294,335      632,796   
    Insured Municipal    24,374,551      223,410      N/A      N/A   
    Municipal 2018    15,389,357      200,991      N/A      N/A   
    Municipal 2020    19,631,834      243,625      N/A      N/A   
    Municipal Strategic    6,993,827      130,358      N/A      N/A   
    California Insured 2008    9,452,733      154,576      9,451,133      156,176   
    California 2018    5,756,334      45,516      N/A      N/A   
    Florida Insured 2008    7,993,400      118,402      7,993,398      118,404   
    Florida 2020    4,418,857      29,378      N/A      N/A   
    New York Insured 2008    9,608,707      1,259,903      9,605,436      1,263,174   
    New York 2018    3,335,905      73,570      N/A      N/A   
    Pennsylvania Strategic    1,924,580      40,063      N/A      N/A   

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         Elected the Class II Directors/Trustees as follows:

       
    Frank J. Fabozzi 
    Kathleen F. Feldstein 
    Ralph L. Schlosstein 
       
    Votes For 
    Votes Withheld 
    Votes For 
    Votes Withheld 
    Votes For 
    Votes Withheld 
    Insured Municipal 2008    N/A    N/A    10,4081    241    N/A    N/A 
    Insured Municipal    6,6121    671    6,6121    671    24,374,685    223,276 
    Municipal 2018    5,0741    171    5,0741    171    15,388,625    201,723 
    Municipal 2020    N/A    N/A    6,9611    161    N/A    N/A 
    Municipal Target    38,569,035    4,230,560    38,547,029    4,252,566    38,565,307    4,234,288 
    Municipal Strategic    N/A    N/A    2,2041    1321    N/A    N/A 
    California Insured 2008    N/A    N/A    3,8311    91    N/A    N/A 
    California 2018    1,7151    11    1,7151    11    5,756,3341    45,516 
    Florida Insured 2008    N/A    N/A    3,3031    21    N/A    N/A 
    Florida 2020    N/A    N/A    1,9411    151    N/A    N/A 
    New York Insured 2008    N/A    N/A    4,3141    41    N/A    N/A 
    New York 2018    1,1861    691    1,1861    691    3,332,351    77,124 
    Pennsylvania Strategic    N/A    N/A    6691    271    N/A    N/A 
    Long-Term Municipal    11,754,319    138,195    11,754,319    138,195    11,754,319    138,195 

         Elected the Class III Directors/Trustees as follows:

       
    Andrew F. Brimmer 
    Kent Dixon 
    Robert S. Kapito 
       
    Votes For 
    Votes Withheld 
    Votes For 
    Votes Withheld 
    Votes For 
    Votes Withheld 
    Municipal 2020    19,619,488    255,971    19,629,681    245,778    19,636,006    239,453 
    Municipal Strategic    6,993,469    130,716    6,995,402    128,783    6,995,925    128,260 
    Florida 2020    4,416,851    31,384    4,420,507    27,728    4,415,223    33,012 
    Pennsylvania Strategic    1,910,261    54,382    1,914,378    50,265    1,923,680    40,963 

         The following Trusts had an additional proposal (Proposal #2) to amend its respective Declaration of Trust to expand the authority of the executive committee of the Board of Trustees:

       
    Votes For 
    Votes Against 
    Votes Withheld 
    Municipal Strategic   
    6,920,390 
    73,781 
    130,014 
     
    Pennsylvania Strategic   
    1,884,092 
    31,304 
    49,247 
     

         The following Trusts had an additional proposal (Proposal #3) to amend its respective Certificate of Designation or Statement of Preferences, as appropriate, to revise the language regarding preferred shares to allow the Trusts to follow the most recent guidelines of S&P, Moody’s or Fitch ratings, as appropriate, for credit rating criteria in effect from time to time to maintain a “AAA” rating on preferred shares1:

       
    Votes For 
     
    Votes Against 
     
    Votes Withheld 
    Insured Municipal 2008    10,334      57      40   
    Insured Municipal    6,594      1      84   
    Municipal Strategic    2,336               
    California Insured 2008    3,826      10      4   
    Florida Insured 2008    3,280      23      2   
    New York Insured 2008    4,270      8      40   


    1 Voted on by holders of preferred shares only.

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         On February 22, 2006, the Board of Insured Municipal 2008, Insured Municipal, California Insured 2008, Florida Insured 2008 and New York Insured 2008 approved a change to each Trusts’ non-fundamental policy to permit each Trust to purchase short-term securities if they have the highest short-term rating assigned by at least one of Moody’s, S&P or Fitch, even if the long-term rating is not AAA.

         Each Trust listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its annual chief executive officer certification regarding compliance with the NYSE’s listing standards and each Trust listed for trading on the American Stock Exchange (AMEX) has filed with the AMEX its corporate governance certification regarding compliance with the AMEX’s listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

         The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts’ share are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such Trust’s offering and the information contained in each Trust’s Statement of Additional Information may have become outdated.

         During the period, there were no material changes in the Trusts’ investment objectives or policies or to their charters or by-laws that have not been approved by the shareholders or in the principle risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolio.

         Quarterly performance and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com/indiv/products/closedendfunds/funds.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, Henry Gabbay, Anne Ackerley and Bartholomew Battista—Managing Directors of the Advisor and the Sub-Advisor, James Kong and Vincent Tritto—Managing Directors of the Sub-Advisor, and Brian P. Kindelan—Managing Director of the Advisor.

    Important Information Regarding the BlackRock Closed-End Funds Semi-Annual Investor Update

         The Semi-Annual Investor Update (“Update”) is available on the Internet and may be accessed through BlackRock’s website at http://www.blackrock.com/indiv/products/closedendfunds/i_update.html. The Update provides information on the fixed income markets and summaries of BlackRock closed-end funds’ investment objectives and strategies. It also contains recent news regarding the BlackRock closed-end funds.

         Historically, BlackRock provided this information in materials mailed with the Funds’ semi-annual report. However, we believe that making this information available through BlackRock’s website allows us to communicate more fully and efficiently with the Funds’ shareholders.

         If you would like to receive a hard copy of the BlackRock Closed-End Funds Semi-Annual Investor Update, please call (800) 699-1BFM.

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    BlackRock Closed-End Funds

    Directors/Trustees  Transfer Agent 
         Ralph L. Schlosstein, Chairman       Computershare Trust Company, N.A. 
         Andrew F. Brimmer, Lead Trustee       250 Royall Street 
         Richard E. Cavanagh       Canton, MA 02021 
         Kent Dixon   
         (800) 699-1BFM 
         Frank J. Fabozzi  Auction Agent2 
         Kathleen F. Feldstein       Bank of New York 
         R. Glenn Hubbard       101 Barclay Street, 7 West 
         Robert S. Kapito       New York, NY 10286 
    Officers  Auction Agent3 
         Robert S. Kapito, President       Deutsche Bank Trust Company Americas 
         Henry Gabbay, Treasurer       60 Wall Street, 27th Floor 
         Bartholomew Battista, Chief Compliance Officer       New York, NY 10005 
         Anne Ackerley, Vice President  Independent Registered Public Accounting Firm 
         James Kong, Assistant Treasurer 
         Deloitte & Touche LLP
         Vincent B. Tritto, Secretary       200 Berkeley Street 
         Brian P. Kindelan, Assistant Secretary       Boston, MA 02116
    Investment Advisor  Legal Counsel 
         BlackRock Advisors, Inc.       Skadden, Arps, Slate, Meagher & Flom LLP
         100 Bellevue Parkway       4 Times Square
         Wilmington, DE 19809       New York, NY 10036
         (800) 227-7BFM  Legal Counsel – Independent Trustees 
    Sub-Advisor1       Debevoise & Plimpton LLP
         BlackRock Financial Management, Inc.       919 Third Avenue 
         40 East 52nd Street       New York, NY 10022 
         New York, NY 10022   
       
    Accounting Agent and Custodian        This report is for shareholder information. This is not a prospec-
         State Street Bank and Trust Company  tus intended for use in the purchase or sale of Trust shares. 
         2 Avenue De Lafayette  .Statements and other information contained in this report are as  
         Boston, MA 02111  dated and are subject to change

    1 For the 2018 Trusts and 2020 Trusts, Strategic Trusts and  BlackRock Closed-End Funds 
       Long-Term Municipal.  c/o BlackRock Advisors, Inc. 
    2 For the 2018 Trusts and 2020 Trusts.  100 Bellevue Parkway 
    3 For the Trusts, except the 2018 Trusts and 2020 Trusts.  Wilmington, DE 19809 
       
    (800) 227-7BFM 

    The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 699-1BFM.

    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) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov.

    Information on how proxies relating to the Trusts’ voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

    The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust’s Form N-Q will be available on the Commission’s website at http://www.sec.gov. Each Trust’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Form N-Q may also be obtained upon request, without charge, by calling (800) 699-1BFM.


     



     

     

     

     

    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-ANN-4

     

     


    Item 2. Code of Ethics.

    Not applicable for semi-annual reports.

    Item 3. Audit Committee Financial Expert.

    Not applicable for semi-annual reports.

    Item 4. Principal Accountant Fees and Services.

    Not applicable for semi-annual reports.

    Item 5. Audit Committee of Listed Registrants.

    Not applicable for semi-annual reports.

    Item 6. Schedule of Investments.

    The Registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

    Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

    Not applicable for semi-annual reports.

    Item 8. Portfolio Managers of Closed-End Management Investment Companies.

    (a) Not applicable for semi-annual reports.

    (b) There have been no changes in the Portfolio Managers identified in Item 8(a) of the most recent annual report.

    Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

    No such purchases were made during the period covered by this report.

    Item 10. Submission of Matters to a Vote of Security Holders.

    No matters were voted on by shareholders during the period covered by this report.

    Item 11. 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, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.


    (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a -3(d))) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

    Item 12. Exhibits.

    (a) (1) Not applicable.

    (a) (2) Separate certifications of the Principal Executive and Financial Officers pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.CERT.

    (b) Certification of Principal Executive and Financial Officers pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906 CERT.

     


    SIGNATURES

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

    (Registrant)___BlackRock Municipal Target Term Trust, Inc.__________



    By:
    /s/ Henry Gabbay
    Name: Henry Gabbay  
    Title: Treasurer
    Date: September 1, 2006
     

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



    By:
    /s/ Robert S. Kapito
    Name: Robert S. Kapito  
    Title: Principal Executive Officer
    Date: September 1, 2006
     


    By:
    /s/ Henry Gabbay
    Name: Henry Gabbay  
    Title: Principal Financial Officer
    Date: September 1, 2006