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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000900092-10-000030.txt : 20100108
<SEC-HEADER>0000900092-10-000030.hdr.sgml : 20100108
<ACCEPTANCE-DATETIME>20100108133537
ACCESSION NUMBER:		0000900092-10-000030
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		10
CONFORMED PERIOD OF REPORT:	20091031
FILED AS OF DATE:		20100108
DATE AS OF CHANGE:		20100108
EFFECTIVENESS DATE:		20100108

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK ENHANCED CAPITAL & INCOME FUND, INC
		CENTRAL INDEX KEY:			0001278895
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21506
		FILM NUMBER:		10516982

	BUSINESS ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
		BUSINESS PHONE:		800-441-7762

	MAIL ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKROCK CAPITAL & INCOME STRATEGIES FUND INC
		DATE OF NAME CHANGE:	20061018

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CAPITAL & INCOME STRATEGIES FUND INC
		DATE OF NAME CHANGE:	20040205
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>cii.htm
<DESCRIPTION>BR ENHANCED CAPITAL AND INCOME FUND, INC.
<TEXT>

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   <TITLE>cii.htm - Produced by Pellegrini and Associates, Inc.  |  134 Spring Street New York NY 10012  |  (212) 925-5151</TITLE>
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<FONT face="ArialMT,Arial,Helvetica,sans-serif">UNITEDSTATES</FONT><BR>
<FONT face="ArialMT,Arial,Helvetica,sans-serif">SECURITIESANDEXCHANGECOMMISSION</FONT><BR>
<FONT face="ArialMT,Arial,Helvetica,sans-serif">Washington,D.C.20549</FONT><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">FORM N-CSR</FONT></B><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INVESTMENT COMPANIES</FONT></B></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Company Act file number 811-21506</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name of Fund: BlackRock Enhanced Capital and Income Fund, Inc. (CII)</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Enhanced Capital and Income Fund, Inc., 55 East 52</FONT><SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">nd </FONT></SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Street, New York, NY 10055.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Registrant&#146;s telephone number, including area code: (800) 882-0052, Option 4</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of fiscal year end: 10/31/2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of reporting period: 10/31/2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 1 &#150; Report to Stockholders</FONT></P>

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<BR>
<P align="left">
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS</FONT><BR>
<BR>
<FONT size=5 face="DIN-Regular,Arial,Helvetica,sans-serif">Annual Report</FONT><BR>
<BR>
<FONT face="DIN-Regular,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust I, Inc. (PSW)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust II, Inc. (PSY)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust III (BPP)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust IV (BTZ)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Enhanced Capital and Income Fund, Inc. (CII)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></P>
<P align="left">
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">NOT FDIC INSURED</FONT><BR>
<BR>
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">MAY LOSE VALUE</FONT><BR>
<BR>
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">NO BANK GUARANTEE</FONT></P>

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     <TD width=73%></TD>
     <TD width=26%></TD></TR>
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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Table of Contents</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=right style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Page</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 19(b) Disclosure</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dear Shareholder</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Annual Report:</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund Summaries</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Derivative Financial Instruments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Statements:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schedules of Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Operations</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Cash Flows</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Notes to Financial Statements</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Report of Independent Registered Public Accounting Firm</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Important Tax Information</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">59</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60</FONT>&nbsp;</TD>
</TR>
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	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Automatic Dividend Reinvestment Plans</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officers and Directors</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">66</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additional Information</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Section 19(b) Disclosure</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust IV (BTZ) and BlackRock Enhanced Capital and Income Fund, Inc. (CII) (collectively, the &#147;Funds&#148;), acting pursuant to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a Securities and Exchange Commission (&#147;SEC&#148;) exemptive order and with the approval of each Fund&#146;s Board of Directors/Trustees (the &#147;Board&#148;), each
have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">adopted a plan, consistent with its investment objectives and policies to support a level distribution of income, capital gains and/or return of capital
(&#147;Plan&#148;).</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In accordance with the Plans, the Funds currently distribute the following fixed amounts per share on a monthly basis for BTZ and a quarterly basis for CII:</FONT></P>
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<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Exchange Symbol</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount Per Common Share</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.100</FONT>&nbsp;</TD>
</TR>
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	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.485</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The fixed amounts distributed per share are subject to change at the discretion of each Fund&#146;s Board. Under its Plan, each Fund will distribute all available</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment income to its shareholders, consistent with its primary investment objectives and as required by the Internal Revenue Code of 1986, as amended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(the &#147;Code&#148;). If sufficient investment income is not available on a monthly/quarterly basis, the Funds will distribute long-term capital gains and/or return
of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">capital to shareholders in order to maintain a level distribution. Each monthly/quarterly distribution to shareholders is expected to be at the fixed amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">established by the Board, except for extraordinary distributions and potential distribution rate increases or decreases to enable the Funds to comply with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the distribution requirements imposed by the Code.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareholders should not draw any conclusions about the Funds&#146; investment performance from the amount of these distributions or from the terms of the Plan.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund&#146;s total return performance on net asset value is presented in its financial highlights table.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board may amend, suspend or terminate a Fund&#146;s Plan without prior notice if it deems such actions to be in the best interests of the Fund or its share-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holders. The suspension or termination of the Plan could have the effect of creating a trading discount (if the Fund&#146;s stock is trading at or above net asset</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value) or widening an existing trading discount. The Funds are subject to risks that could have an adverse impact on their ability to maintain level distri-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">butions. Examples of potential risks include, but are not limited to, economic downturns impacting the markets, decreased market volatility, companies sus-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pending or decreasing corporate dividend distributions and changes in the Code. Please refer to each Fund&#146;s prospectus for a more complete description</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of its risks.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Please refer to Additional Information for a cumulative summary of the Section 19(a) notices for each Fund&#146;s current fiscal period. Section 19(a) notices for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds, as applicable, are available on the BlackRock website </FONT><FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">www.blackrock.com</FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">2 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Dear Shareholder</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Over the past 12 months, we have witnessed a seismic shift in market sentiment &#151; from fear and pessimism during the worst economic decline and crisis</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of confidence in financial markets since The Great Depression to increasing optimism amid emerging signs of recovery. The period began in the midst of an</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">intense deterioration in global economic activity and financial markets in the final months of 2008 and the early months of 2009. The collapse of confi-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dence resulted in massive government policy intervention on a global scale in the financial system and the economy. The tide turned dramatically in March</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, however, on the back of new US government initiatives, as well as better-than-expected economic data and upside surprises in corporate earnings.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not surprisingly, global equity markets endured extreme volatility over the past 12 months, starting with steep declines and heightened risk aversion in the</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">early part of the reporting period, which eventually gave way to an impressive rally that began in March. Although there have been fits and starts along the</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">way and a few modest corrections, the new bull market has pushed all major US indices well into positive territory for 2009. The experience in international</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">markets was similar to that in the United States. In particular, emerging markets (which were less affected by the global credit crunch and are experiencing</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">faster economic growth rates when compared to the developed world) have posted impressive gains since the rally began.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, which drove yields sharply lower,</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">but concerns about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields range bound in recent months. As economic</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and market conditions began to improve in early 2009, near-zero interest rates on risk-free assets prompted many investors to reallocate money from cash</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments into higher-yielding and riskier non-Treasury assets. The high yield sector was the greatest beneficiary of this move, having decisively outpaced</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">all other taxable asset classes since the start of 2009. Similarly, the municipal bond market is on pace for its best performance year ever in 2009, following</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">one of its worst years in 2008. Investor demand remains strong for munis, helping to create a highly favorable technical backdrop. Municipal bond mutual</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds are seeing record inflows, reflecting the renewed investor interest in the asset class.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As a result of the rebound in sentiment and global market conditions, most major benchmark indexes are now in positive territory for both the</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6- and 12-month periods.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=28%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Returns as of October 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">6-month</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">12-month</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US equities (S&amp;P 500 Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20.04%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.80%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Small cap US equities (Russell 2000 Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16.21</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.46</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International equities (MSCI Europe, Australasia, Far East Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31.18</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27.71</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.79)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.12</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Taxable fixed income (Barclays Capital US Aggregate Bond Index)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.61</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.79</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax-exempt fixed income (Barclays Capital Municipal Bond Index)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.99</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.60</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27.72</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48.65</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* Formerly a Merrill Lynch index.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an
index.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">turbulence, as ever, BlackRock&#146;s full resources are dedicated to the management of our clients&#146; assets. For additional market perspective and investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">insight, visit the most recent issue of our award-winning </FONT><FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Shareholder&#174; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">magazine at </FONT><FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">www.blackrock.com/shareholdermagazine. </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As always, we thank you</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.</FONT></P>
<IMG src="brtax-6ar1009x3x1.jpg" border=0>
<BR>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Announcement to Shareholders</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On December 1, 2009, BlackRock, Inc. and Barclays Global Investors, N.A. combined to form one of the world's preeminent investment management firms.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The new company, operating under the BlackRock name, manages &#36;3.19 trillion in assets** and offers clients worldwide a full complement of active man-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agement, enhanced and index investment strategies and products, including individual and institutional separate accounts, mutual funds and other pooled</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment vehicles, and the industry-leading iShares platform of exchange traded funds.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">** Data is as of September 30, 2009, is subject to change, and is based on a pro forma estimate of assets under management and other data at BlackRock, Inc.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Barclays Global Investors.</FONT><BR>
<BR>
<FONT color="#4d4d4d" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">THIS PAGE NOT PART OF YOUR FUND REPORT </FONT><FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">3</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of October 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust I, Inc.</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust I, Inc. (PSW) (formerly BlackRock Preferred and Corporate Income Strategies Fund, Inc.) (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provide shareholders with high current income and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties, including, but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">economic characteristics similar to these credit-related securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective November 13, 2009, BlackRock Preferred and Corporate Income Strategies Fund, Inc. was renamed BlackRock Credit Allocation Income Trust I, Inc.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board approved a change to the Fund&#146;s non-fundamental investment policies during the period. Please refer to page 70 in the Additional Information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">section.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended October 31, 2009, the Fund returned 37.59% based on market price and 46.46% based on net asset value (&#147;NAV&#148;). For the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">same period, the closed-end Lipper Income &amp; Preferred Stock Funds category posted an average return of 39.55% on a market price basis and 40.36% on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a NAV basis. All returns reflect reinvestment of dividends. The Fund&#146;s discount to NAV, which widened during the period, accounts for the difference between</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance based on price and performance based on NAV. Strong annual performance has been driven by the Fund&#146;s positioning to fully capture the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">near-term strength anticipated in the preferred sector during 2009. The Fund benefited from an overweight allocation to institutional hybrids (preferred secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rities available only over-the-counter to institutional investors) as the sector continued its dramatic outperformance during 2009 relative to retail preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities, which are exchange traded. This position also served as a performance detractor when the preferred sector deteriorated during the fourth quarter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of 2008. Performance benefited from participation in several additional issuer-related tenders in preferred equity exchanges, along with an overweight in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the insurance sector. A generally large position in short-term securities proved beneficial as well &#151; most notably during 2008 and into the first quarter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of 2009 &#151; as it preserved NAV better than had the Fund been fully invested. Finally, the Fund notably reduced leverage in response to rating agency</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">methodology changes for preferred securities requiring greater collateral due to increased volatility in the sector, which detracted from performance.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=14%></TD>
     <TD width=25%></TD>
     <TD width=9%></TD>
     <TD width=7%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on New York Stock Exchange (&#147;NYSE&#148;)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 1, 2003</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield based on Closing Market Price as of October 31, 2009 (&#36;8.24)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.74%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.06</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.72</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of October 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change. A portion of the
distribution may be deemed a tax return of capital or net realized gain.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents reverse repurchase agreements and Auction Market Preferred
Shares (&#147;Preferred Shares&#148;) as a percentage of total managed assets,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which is the total assets of the Fund (including any assets attributable to any borrowings and Preferred Shares) minus the sum of liabilities
(other</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks
of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leveraging on page 10.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.24</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.00</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17.71%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.52</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.44</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;9.31</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.43</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;9.31</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4.55</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the portfolio composition and credit quality allocations of the Fund&#146;s total investments:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Composition</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Securities</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">87%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A/A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B/B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of Standard &amp; Poor&#146;s (&#147;S&amp;P&#146;s&#148;) or
Moody&#146;s Investor</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Service (&#147;Moody&#146;s&#148;) ratings.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_7"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of October 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust II, Inc.</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust II, Inc. (PSY) (formerly BlackRock Preferred Income Strategies Fund, Inc.) (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide share-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holders with current income and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">characteristics similar to these credit-related securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective November 13, 2009, BlackRock Preferred Income Strategies Fund, Inc. was renamed BlackRock Credit Allocation Income Trust II, Inc.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board approved a change to the Fund&#146;s non-fundamental investment policies during the period. Please refer to page 70 in the Additional Information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">section.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended October 31, 2009, the Fund returned 29.37% based on market price and 48.36% based on NAV. For the same period, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closed-end Lipper Income &amp; Preferred Stock Funds category posted an average return of 39.55% on a market price basis and 40.36% on a NAV basis.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">All returns reflect reinvestment of dividends. The Fund moved from a premium to a discount to NAV by year-end, which accounts for the difference between</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance based on price and performance based on NAV. Strong annual performance has been driven by the Fund&#146;s positioning to fully capture the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">near-term strength anticipated in the preferred sector during 2009. The Fund benefited from an overweight allocation to institutional hybrids (preferred secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rities available only over-the-counter to institutional investors) as the sector continued its dramatic outperformance during 2009 relative to retail preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities, which are exchange traded. This position also served as a performance detractor when the preferred sector deteriorated during the fourth quarter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of 2008. Performance benefited from participation in several additional issuer-related tenders in preferred equity exchanges, along with an overweight in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the insurance sector. A generally large position in short-term securities proved beneficial as well &#151; most notably during 2008 and into the first quarter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of 2009 &#151; as it preserved NAV better than had the Fund been fully invested. Finally, the Fund notably reduced leverage in response to rating agency</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">methodology changes for preferred securities requiring greater collateral due to increased volatility in the sector, which detracted from performance.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=25%></TD>
     <TD width=10%></TD>
     <TD width=9%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">March 28, 2003</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of October 31, 2009 (&#36;8.90)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.11%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.075</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of October 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change. A portion of the
distribution may be deemed a tax return of capital or net realized gain.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents reverse repurchase agreements and Preferred Shares as a
percentage of total managed assets, which is the total assets of the Fund</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(including any assets attributable to any borrowings and Preferred Shares) minus the sum of liabilities (other than borrowings representing
financial</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page
10.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.90</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.88%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.20</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.69</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.03</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.96</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26.01%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4.60</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the portfolio composition and credit quality allocations of the Fund&#146;s total investments:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Composition</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Securities</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">88%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">93%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A/A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B/B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s
ratings.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_8"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Fund Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of October 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust III</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust III (BPP) (formerly BlackRock Preferred Opportunity Trust) (the &#147;Fund&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks high current income consistent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with capital preservation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including, but not limited to, investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credit-related securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective November 13, 2009, BlackRock Preferred Opportunity Trust was renamed BlackRock Credit Allocation Income Trust III.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board approved a change to the Fund&#146;s non-fundamental investment policies during the period. Please refer to page 70 in the Additional Information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">section.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended October 31, 2009, the Fund returned 36.42% based on market price and 47.16% based on NAV. For the same period, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closed-end Lipper Income &amp; Preferred Stock Funds category posted an average return of 39.55% on a market price basis and 40.36% on a NAV basis. All</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">returns reflect reinvestment of dividends. The Fund&#146;s discount to NAV, which widened during the period, accounts for the difference between performance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based on price and performance based on NAV. Strong annual performance has been driven by the Fund&#146;s positioning to fully capture the near-term</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">strength anticipated in the preferred sector during 2009. The Fund benefited from an overweight allocation to institutional hybrids (preferred securities avail-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">able only over-the-counter to institutional investors) as the sector continued its dramatic outperformance during 2009 relative to retail preferred securities,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which are exchange traded. This position also served as a performance detractor when the preferred sector deteriorated during the fourth quarter of 2008.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Performance benefited from participation in several additional issuer-related tenders in preferred equity exchanges, along with an overweight in the insur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance sector. A generally large position in short-term securities proved beneficial as well &#151; most notably during 2008 and into the first quarter of 2009 &#151;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as it preserved NAV better than had the Fund been fully invested. Finally, the Fund notably reduced leverage in response to rating agency methodology</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">changes for preferred securities requiring greater collateral due to increased volatility in the sector, which detracted from performance.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=14%></TD>
     <TD width=25%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">February 28, 2003</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of October 31, 2009 (&#36;9.94)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.75%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0725</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.8700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of October 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change. A portion of the
distribution may be deemed a tax return of capital or net realized gain.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents reverse repurchase agreements and Preferred Shares as a
percentage of total managed assets, which is the total assets of the Fund</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(including any assets attributable to any borrowings and Preferred Shares) minus the sum of liabilities (other than borrowings representing
financial</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page
10.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.94</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.51</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16.80%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4.00</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11.05</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8.77</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26.00%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11.13</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;5.06</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the portfolio composition and credit quality allocations of the Fund&#146;s total investments:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Composition</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">10/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Securities</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A/A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCC/Caa</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s
ratings.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>


<!--$$/page=-->
<A name="page_9"></A>
<P align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Fund Summary </FONT><FONT color=#0035c4 size=2 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>as of October 31, 2009 </FONT><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust IV</FONT></B><BR>
<BR>
<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face=FranklinGothic-MedCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust IV (BTZ) (formerly BlackRock Preferred and Equity Advantage Trust) (the &#147;Fund&#148;) </FONT><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>seeks to achieve high</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>current income, current gains and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including,</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic char-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>acteristics similar to these credit-related securities.</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Effective November 13, 2009, BlackRock Preferred and Equity Advantage Trust was renamed BlackRock Credit Allocation Income Trust IV.</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Board approved a change to the Fund&#146;s non-fundamental investment policies during the period. Please refer to page 70 in the Additional Information</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>section.</FONT><BR>
<BR>
<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Performance</FONT></B><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For the 12 months ended October 31, 2009, the Fund returned 38.38% based on market price and 41.06% based on NAV. For the same period, the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>closed-end Lipper Income &amp; Preferred Stock Funds category posted an average return of 39.55% on a market price basis and 40.36% on a NAV basis. All</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>returns reflect reinvestment of dividends. The Fund&#146;s discount to NAV, which widened during the period, accounts for the difference between performance</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>based on price and performance based on NAV. Strong annual performance has been driven by the Fund&#146;s positioning to fully capture the near-term</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>strength anticipated in the preferred sector during 2009. The Fund benefited from an overweight allocation to institutional hybrids (preferred securities avail-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>able only over-the-counter to institutional investors) as the sector continued its dramatic outperformance during 2009 relative to retail preferred securities,</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>which are exchange traded. This position also served as a performance detractor when the preferred sector deteriorated during the fourth quarter of 2008.</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Performance benefited from participation in several additional issuer-related tenders in preferred equity exchanges, along with an overweight in the insur-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ance sector. A generally large position in short-term securities proved beneficial as well &#151; most notably during 2008 and into the first quarter of 2009 &#151;</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>as it preserved NAV better than had the Fund been fully invested. Finally, the Fund notably reduced leverage in response to rating agency methodology</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>changes for preferred securities requiring greater collateral due to increased volatility in the sector, which detracted from performance.</FONT><BR>
<BR>
<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These</FONT><BR>
<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Fund Information</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
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     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Symbol on NYSE</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BTZ</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Initial Offering Date</FONT>&nbsp;</TD>
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     <TD colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>December 27, 2006</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Yield on Closing Market Price as of October 31, 2009 ($10.96)</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10.95%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT></SUP>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 0.10</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 1.20</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Leverage as of October 31, 2009</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT></SUP>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>31%</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left>&nbsp; &nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Past performance does not guarantee future results.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD colSpan=8 align=left>&nbsp; &nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Represents reverse repurchase agreements and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(including any assets attributable to any borrowings and Preferred Shares) minus the sum of liabilities (other than borrowings representing financial</FONT>&nbsp;</TD></TR>
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     <TD colSpan=7 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=5 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/08</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Change</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>High</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Low</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Market Price</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$10.96</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 9.36</FONT>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>17.09%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$11.49</FONT>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$4.56</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net Asset Value</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$12.64</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$10.59</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19.36%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$12.69</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$6.89</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following unaudited charts show the portfolio composition of the Fund&#146;s total investments and credit quality allocations of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fund&#146;s total investments excluding Common Stocks:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Portfolio Composition</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb colSpan=3 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Credit Quality Allocations</FONT></B><B><SUP><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>4</FONT></SUP></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/08</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/08</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Securities</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>57%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>59%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AA/Aa</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>33</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>21</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>A/A</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>33</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>37</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BBB/Baa</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>53</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Common Stocks</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BB/Ba</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>B/B</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>7</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Fund Summary </FONT><FONT color=#0035c4 size=2 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>as of October 31, 2009</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Enhanced Capital and Income Fund, Inc.</FONT></B>&nbsp;</TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investment Objective</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-MedCnd,Arial,Helvetica,sans-serif>BlackRock Enhanced Capital and Income Fund, Inc. (CII) (the &#147;Fund&#148;) </FONT><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>seeks to provide investors with a combination of current income and capital</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>appreciation. The Fund seeks to achieve its investment objective by investing primarily in a diversified portfolio of common stocks in an attempt to</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>generate current income and by employing a strategy of writing (selling) call options on equity indexes in an attempt to generate gains from option</FONT>&nbsp;</TD></TR>
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     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>premiums primarily on the S&amp;P 500 Index.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Board approved a change to the Fund&#146;s option writing policy during the period. Please refer to page 70 in the Additional Information section.</FONT>&nbsp;</TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Performance</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For the 12 months ended October 31, 2009, the Fund returned 29.88% based on market price and 22.01% based on NAV. For the same period, the</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>benchmark S&amp;P 500 Citigroup Value Index returned 2.98% based on NAV. All returns reflect reinvestment of dividends. The Fund's discount to NAV, which</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>narrowed significantly during the period, accounts for the difference between performance based on price and performance based on NAV. The main con-</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>tributor to Fund performance relative to the S&amp;P 500 Citigroup Value Index was the Option strategy that was implemented by the Fund. The option strategy</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>contributed almost 75% of the outperformance over the index. From an equity holdings standpoint, the main contributors were an underweight and stock</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>selection in financials, stock selection in health care and industrials, and overweights in the information technology and energy sectors. The main detractors</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>from performance for the one-year period included stock selection in materials and consumer staples, as well as an underweight in the consumer</FONT>&nbsp;</TD></TR>
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     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>discretionary sector.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>views are not intended to be a forecast of future events and are no guarantee of future results.</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Fund Information</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD></TR>
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     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Symbol on NYSE</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>CII</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Initial Offering Date</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>April 30, 2004</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Yield on Closing Market Price as of October 31, 2009 ($13.76)</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14.10%</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Current Quarterly Distribution per share</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 0.485</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Current Annualized Distribution per share</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT></SUP>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 1.940</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=right><SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Past performance does not guarantee future results.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=right><SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/08</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Change</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>High</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Low</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Market Price</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$13.76</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$12.37</FONT>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11.24%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$15.70</FONT>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 7.92</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net Asset Value</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$14.40</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$13.78</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4.50%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$14.99</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$10.62</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=6 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following unaudited charts show the ten largest holdings and sector allocations of the Fund&#146;s long-term investments:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Ten Largest Holdings</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Sector Allocations</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/08</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Travelers Cos., Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4%</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Financials</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase &amp; Co.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Information Technology</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>17</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>LSI Corp.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Health Care</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Chevron Corp.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Consumer Staples</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>23</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Schering-Plough Corp.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Energy</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bristol-Myers Squibb Co.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Industrials</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Exxon Mobil Corp.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD colSpan=3 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Telecommunication Services</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Kimberly-Clark Corp.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD colSpan=3 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Consumer Discretionary</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Kraft Foods, Inc.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Materials</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Time Warner, Inc.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Utilities</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For Fund compliance purposes, the Fund&#146;s sector classifications refer</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>to any one or more of the sector sub-classifications used by one or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>more widely recognized market indexes or ratings group indexes,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>and/or as defined by Fund management. This definition may not</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>apply for purposes of this report, which may combine sector sub-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>classifications for reporting ease.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>8</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR></TABLE><BR>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV>

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<P align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Fund Summary </FONT><FONT color=#0035c4 size=2 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>as of October 31, 2009 </FONT><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Floating Rate Income Trust</FONT></B><BR>
<BR>
<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face=FranklinGothic-MedCnd,Arial,Helvetica,sans-serif>BlackRock Floating Rate Income Trust (BGT) (formerly BlackRock Global Floating Rate Income Trust) (the &#147;Fund&#148;) </FONT><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>seeks to provide a high level of current</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>income and to seek the preservation of capital. The Fund seeks to achieve its objective by investing in a global portfolio of primarily floating and variable</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>rate securities.</FONT><BR>
<BR>
<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>No assurance can be given that the Fund&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Performance</FONT></B><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For the 12 months ended October 31, 2009, the Fund returned 54.14% based on market price and 39.51% based on NAV. For the same period, the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>closed-end Lipper Loan Participation Funds category posted an average return of 39.76% on a market price basis and 25.60% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>reflect reinvestment of dividends. (The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>both closed-end funds that employ leverage and continuously offered closed-end funds that do not. For this reporting period, those Lipper peers that do not</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>employ leverage were at a disadvantage given the market rally.) The Fund's discount to NAV, which narrowed during the period, accounts for the difference</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>between performance based on price and performance based on NAV. For the first two months of the reporting period, the high yield loan market was under</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>extreme pressure and lost 10.9%, as measured by the Credit Suisse Leveraged Loan Index. However, this brief period of underperformance was followed by the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>market&#146;s strongest results ever, as the sector gained more than 40% for the period January 1, 2009 to October 31, 2009. On average, market performance was</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>positive and the Fund&#146;s reduction of leverage in response to higher collateral requirements imposed by the major rating agencies had a negative effect on</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>absolute performance. Relative to its Lipper peers, the Fund gained from both maintaining leverage and focusing on higher-quality sectors and structures, which</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>benefited most during the sharp rally in 2009. Conversely, the Fund&#146;s cash position hurt performance during the period.</FONT><BR>
<BR>
<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These</FONT><BR>
<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellSpacing=0>
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     <TD width="9%"></TD>
     <TD width="8%"></TD>
     <TD width="9%"></TD>
     <TD width="7%"></TD>
     <TD width="9%"></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Fund Information</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Symbol on NYSE</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BGT</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Initial Offering Date</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>August 30, 2004</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Yield on Closing Market Price as of October 31, 2009 ($12.58)</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.44%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$0.0675</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$0.8100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Leverage as of October 31, 2009</FONT><SUP><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT></SUP>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left>&nbsp; &nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Past performance does not guarantee future results.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The distribution is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Represents loan outstanding and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund (including any</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>assets attributable to any borrowings and Preferred Shares) minus the sum of liabilities (other than borrowings representing financial leverage).</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=5 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The table below summarizes the changes in the Fund&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/08</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Change</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>High</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Low</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Market Price</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$12.58</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 9.63</FONT>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30.63%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$12.98</FONT>&nbsp;</TD>
     <TD align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$6.88</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net Asset Value</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$13.29</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$11.24</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>18.24%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$13.35</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$8.86</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following unaudited charts show the portfolio composition of the Fund&#146;s long-term investments and credit quality allocations</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>of the Fund&#146;s long-term investments excluding floating rate loan interests:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Portfolio Composition</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb colSpan=3 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Credit Quality Allocations</FONT></B><B><SUP><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>4</FONT></SUP></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/08</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/09</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>10/31/08</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Floating Rate Loan Interests</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>76%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>79%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AAA/Aaa</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>A/A</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Foreign Government Obligations</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BBB/Baa</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>27</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Other Interests</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BB/Ba</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>17</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>B/B</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>22</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>23</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>CCC/Caa</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>C/C</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>D</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1</FONT>&nbsp;</TD>
     <TD align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Not Rated</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=right><SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>9</FONT>&nbsp;</TD></TR></TABLE><BR>
<HR align=center SIZE=2 width="100%" noShade>
<DIV style="PAGE-BREAK-BEFORE: always"></DIV>

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<A name="page_12"></A>
<P align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>The Benefits and Risks of Leveraging</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Funds may utilize leverage to seek to enhance the yield and NAV of their</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Common Shares. However, these objectives cannot be achieved in all interest</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>rate environments.</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Funds may utilize leverage through borrowings, the issuance of</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Shares or by entering into reverse repurchase agreements. In</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>general, the concept of leveraging is based on the premise that the cost of</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>assets to be obtained from leverage will be based on short-term interest</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>rates, which normally will be lower than the income earned by each Fund</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>on its longer-term portfolio investments. To the extent that the total assets</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>of each Fund (including the assets obtained from leverage) are invested in</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>higher-yielding portfolio investments, each Fund&#146;s Common Shareholders</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>will benefit from the incremental net income.</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The interest earned on securities purchased with the proceeds from lever-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>age is paid to Common Shareholders in the form of dividends, and the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>value of these portfolio holdings is reflected in the per share NAV of each</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fund&#146;s Common Shares. However, in order to benefit Common Shareholders,</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>the yield curve must be positively sloped; that is, short-term interest rates</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>must be lower than long-term interest rates. If the yield curve becomes</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>negatively sloped, meaning short-term interest rates exceed long-term</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>interest rates, income to Common Shareholders will be lower than if the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Funds had not used leverage.</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>To illustrate these concepts, assume a Fund&#146;s Common Shares capitalization</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>is $100 million and it borrows and/or issues Preferred Shares for an addi-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>tional $50 million, creating a total value of $150 million available for invest-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ment in long-term securities. If prevailing short-term interest rates are 3%</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>and long-term interest rates are 6%, the yield curve has a strongly positive</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>slope. In this case, the Fund pays interest expense and/or dividends on</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>the $50 million of Preferred Shares based on the lower short-term interest</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>rates. At the same time, the securities purchased by the Fund with assets</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>received from the borrowings and/or issuance of Preferred Shares can earn</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>income based on long-term interest rates. In this case, the interest expense</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>and/or dividends paid to Preferred Shareholders are significantly lower</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>than the income earned on the Fund&#146;s long-term investments, and there-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>fore the Common Shareholders are the beneficiaries of the incremental</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>net income.</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>If short-term interest rates rise, narrowing the differential between short-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>term and long-term interest rates, the incremental net income pickup on</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>the Common Shares will be reduced or eliminated completely. Furthermore,</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>if prevailing short-term interest rates rise above long-term interest rates of</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6%, the yield curve has a negative slope. In this case, the Fund pays divi-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>dends on the higher short-term interest rates whereas the Fund&#146;s total port-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>folio earns income based on lower long-term interest rates.</FONT></P>
<P align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Furthermore, the value of a Fund&#146;s portfolio investments generally varies</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>inversely with the direction of long-term interest rates, although other factors</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>can influence the value of portfolio investments. In contrast, the redemption</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>value of the Funds&#146; borrowings and/or Preferred Shares does not fluctuate</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>in relation to interest rates. As a result, changes in interest rates can influ-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ence the Funds&#146; NAV positively or negatively in addition to the impact on</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fund performance from leverage from borrowings.</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The use of leverage may enhance opportunities for increased income to the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Funds and Common Shareholders, but as described above, it also creates</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>risks as short- or long-term interest rates fluctuate. Leverage also will gener-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ally cause greater changes to each Fund&#146;s NAV, market price and dividend</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>rates than a comparable portfolio without leverage. If the income derived</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>from securities purchased with assets received from leverage exceeds the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>cost of leverage, each Fund&#146;s net income will be greater than if leverage had</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>not been used. Conversely, if the income from the securities purchased is</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>not sufficient to cover the cost of leverage, each Fund&#146;s net income will be</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>less than if leverage had not been used, and therefore the amount available</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>for distribution to shareholders will be reduced. Each Fund may be required</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>to sell portfolio securities at inopportune times or at distressed values in</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>order to comply with regulatory requirements applicable to the use of lever-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>age or as required by the terms of leverage instruments which may cause</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>a Fund to incur losses. The use of leverage may limit each Fund&#146;s ability to</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>invest in certain types of securities or use certain types of hedging strate-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>gies, such as in the case of certain restrictions imposed by ratings agencies</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>that rate Preferred Shares issued by each Fund. Each Fund will incur</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>expenses in connection with the use of leverage, all of which are borne by</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>the Common Shareholders and may reduce income on the Common Shares.</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Under the Investment Company Act of 1940, BGT is permitted to borrow</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>through a credit facility up to 33</FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif><SUP> 1 </SUP>/<SUB> 3 </SUB></FONT><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>% of its total managed assets and the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Funds are permitted to issue Preferred Shares in an amount of up to 50%</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>of their total managed assets at the time of issuance. Under normal cir-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>cumstances, each Fund anticipates that the total economic leverage from</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Shares, reverse repurchase agreements and credit facility borrow-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ings will not exceed 50% of its total managed assets at the time such lever-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>age is incurred. As of October 31, 2009, the Funds had economic leverage</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>from Preferred Shares, reverse repurchase agreements and/or credit facility</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>borrowings as a percentage of their total managed assets as follows:</FONT></P>
<TABLE border=0 cellSpacing=0>
<TR>
     <TD width="46%"></TD>
     <TD width="53%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Percent of</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Leverage</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PSW</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>32%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PSY</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BPP</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>29%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BTZ</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>31%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BGT</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19%</FONT>&nbsp;</TD></TR></TABLE><BR>
<P align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Derivative Financial Instruments</FONT><BR>
<BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Funds may invest in various derivative instruments, including financial</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>futures contracts, swaps, foreign currency exchange contracts and options,</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>as specified in Note 2 of the Notes to Financial Statements, which consti-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>tute forms of economic leverage. Such instruments are used to obtain</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>exposure to a market without owning or taking physical custody of securi-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ties or to hedge market, equity, credit, interest rate and/or foreign currency</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>exchange rate risks. Such derivative instruments involve risks, including the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>imperfect correlation between the value of a derivative instrument and the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>underlying asset, possible default of the counterparty to the transaction</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>and illiquidity of the derivative instrument. Each Fund&#146;s ability to success-</FONT></P>
<P align=left><FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>fully use a derivative instrument depends on the investment advisor&#146;s</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ability to accurately predict pertinent market movements, which cannot be</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>assured. The use of derivative instruments may result in losses greater than</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>if they had not been used, may require the Funds to sell or purchase port-</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>folio securities at inopportune times or at distressed values, may limit the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>amount of appreciation the Funds can realize on an investment or may</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>cause the Funds to hold a security that they might otherwise sell. The</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Funds&#146; investments in these instruments are discussed in detail in the</FONT><BR>
<FONT size=2 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Notes to Financial Statements.</FONT></P>
<P align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>10 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>
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<TABLE border=0 cellSpacing=0>
<TR>
     <TD width="29%"></TD>
     <TD width="3%"></TD>
     <TD width="5%"></TD>
     <TD width="4%"></TD>
     <TD width="7%"></TD>
     <TD width="20%"></TD>
     <TD width="7%"></TD>
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     <TD width="7%"></TD>
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<TR vAlign=bottom>
     <TD colSpan=4 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments </FONT><FONT color=#0035c4 size=2 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>October 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust I, Inc. (PSW)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 2.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Multi-Utilities &#151; 2.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Oil Insurance Ltd., 7.56% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 1,000</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 706,200</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Dominion Resources Capital Trust I,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,484</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,695,246</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7.83%, 12/01/27 (f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 1,200 $</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,202,650</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,401,446</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Dominion Resources, Inc., 7.50% (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,051</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,029,980</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Puget Sound Energy, Inc. Series A, 6.97%, 6/01/67 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>475</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>415,587</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Media &#151; 12.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>COX Communications, Inc., 8.38%, 3/01/39 (a)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,988,640</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,648,217</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Corporate Bonds &#151; 15.0%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,390,086</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Oil, Gas &amp; Consumable Fuels &#151; 1.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Enterprise Products Operating LLC, 8.38%, 8/01/66 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>825</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>808,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>465,397</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,273,897</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Capital Trusts &#151; 33.5%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>32,110,050</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Building Products &#151; 0.7%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>C8 Capital SPV Ltd., 6.64% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>980</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>691,018</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 5.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 8.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Ameriprise Financial, Inc., 7.52%, 6/01/66 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,900</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,615,000</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>First Tennessee Bank NA, 3.90% (a)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,176</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>589,838</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lehman Brothers Holdings Capital Trust V,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HSBC USA, Inc.:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3.64% (b)(c)(d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,600</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>160</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series D, 4.50% (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>35,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>734,300</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>State Street Capital Trust III, 8.25% (b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>725</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>731,257</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series H, 6.50%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>168,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,410,400</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>State Street Capital Trust IV, 1.30%, 6/01/67 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,740</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,180,090</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Provident Financial Group, Inc., 7.75%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>42,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,013,250</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,526,507</FONT>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Royal Bank of Scotland Group Plc, Series M, 6.40%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>51,700</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 3.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Santander Finance Preferred SA Unipersonal, 6.80%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>72,807</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,992,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of Ireland Capital Funding II, LP, 5.57% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>429</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>188,760</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,791,488</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of Ireland Capital Funding III, LP, 6.11% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>740</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>325,600</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 2.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc, 5.93% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>390,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cobank ACB, 7.00% (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>38,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,326,439</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>First Empire Capital Trust II, 8.28%, 6/01/27</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>910</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>691,337</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ING Groep NV, 7.20%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>35</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>612,942</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>National City Preferred Capital Trust I, 12.00% (b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>300</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>343,359</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>875</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>948,675</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,939,381</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Santander Perpetual SA Unipersonal, 6.67% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>250</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>228,123</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 3.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SunTrust Preferred Capital I, 5.85% (b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>135</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>88,087</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Alabama Power Co., 6.50%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>25,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>750,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,203,941</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Entergy Arkansas, Inc., 6.45%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>28,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>609,301</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Entergy Louisiana LLC, 6.95%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>22,650</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,119,747</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 3.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Farm Credit Bank of Texas Series 1, 7.56% (b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,000</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>701,550</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,479,048</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase Capital XXIII, 1.44%, 5/15/77 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,085</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,172,873</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 5.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,874,423</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aspen Insurance Holdings Ltd., 7.40% (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>55,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,116,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Axis Capital Holdings Ltd.:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 0.5%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series A, 7.25%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>35,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>789,250</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPL Capital Funding, 6.70%, 3/30/67 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>430,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series B, 7.50% (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>673,875</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 16.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Endurance Specialty Holdings Ltd. Series A, 7.75%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>35,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>770,880</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AXA SA, 6.38% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,585</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,038,287</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>RenaissanceRe Holding Ltd. Series D, 6.60%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>110,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,267,100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Ace Capital Trust II, 9.70%, 4/01/30</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>552,614</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,617,605</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Allstate Corp., 6.50%, 5/15/57 (c)(f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,200</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,736,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Chubb Corp., 6.38%, 3/29/67 (c)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>453,750</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Real Estate Investment Trusts (REITs) &#151; 7.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Farmers Exchange Capital, 7.05%, 7/15/28 (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>428,271</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BRE Properties, Inc. Series D, 6.75%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>205,200</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Genworth Financial, Inc., 6.15%, 11/15/66 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>750</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>502,500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>First Industrial Realty Trust, Inc., 6.24% (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>610</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>270,116</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Great West Life &amp; Annuity Insurance Co.,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HRPT Properties Trust:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7.15%, 5/16/46 (a)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>415,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series B, 8.75%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>97,917</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,257,966</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>525,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series C, 7.13%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>125,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,332,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lincoln National Corp., 7.00%, 5/17/66 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>410,000</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>iStar Financial, Inc. Series I, 7.50%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>59,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>416,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MetLife, Inc., 6.40%, 12/15/66 (f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>433,125</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Public Storage:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nationwide Life Global Funding I, 6.75%, 5/15/67</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>378,967</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series F, 6.45%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>212,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Oil Casualty Insurance Ltd., 8.00%, 9/15/34 (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>915</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>576,450</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series I, 7.25%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>40,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>954,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Progressive Corp., 6.70%, 6/15/67 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>437,973</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series M, 6.63%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>429,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Reinsurance Group of America, 6.75%, 12/15/65 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>700</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>542,500</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,077,782</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Travelers Cos., Inc., 6.25%, 3/15/67 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>450,000</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Wireless Telecommunication Services &#151; 2.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust II, 6.45%, 12/15/65 (a)(c)(h)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,800</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,620,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Centaur Funding Corp., 9.08% (a)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,720</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,729,350</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (a)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>146</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>118,040</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,097</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>888,570</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Preferred Stocks &#151; 29.7%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>28,634,654</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Zenith National Insurance Capital Trust I,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8.55%, 8/01/28 (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>955,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,462,047</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Portfolio Abbreviations</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e9f1fb align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>To simplify the listings of portfolio holdings in the Schedules of</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>ADR</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>American Depositary Receipts</FONT>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>MXN</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Mexican New Peso</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Investments, the names of many of the securities have been</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>EUR</FONT></B>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Euro</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>USD</FONT></B>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>US Dollar</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>abbreviated according to the following list:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>GBP</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>British Pound</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>11</FONT>&nbsp;</TD></TR></TABLE><BR>
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<TR>
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     <TD colSpan=4 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (continued)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust I, Inc. (PSW)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Consumer Finance &#151; 2.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For Fund compliance purposes, the Fund&#146;s industry classifications refer to any one</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital One Capital II, 7.50%, 6/15/66</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>93</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 2,060,649</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 1.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPL Energy Supply LLC, 7.00%, 7/15/46</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>49</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,263,610</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>This definition may not apply for purposes of this report, which may combine indus-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 2.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>try sub-classifications for reporting ease.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ABN AMRO North America Capital Funding Trust II,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Reverse repurchase agreements outstanding as of October 31, 2009 were</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2.87% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>85,988</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>as follows:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lincoln National Capital VI Series F, 6.75%, 9/11/52</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>90</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,827,781</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Interest</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trade</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Maturity</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net Closing</FONT></B>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Face</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,913,769</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Counterparty</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Rate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Trust Preferreds &#151; 5.5%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,238,028</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc 0.75%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10/16/09</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11/16/09</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$4,975,252</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 4,972,041</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Preferred Securities &#151; 68.7%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>65,982,732</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Long Term Investments</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Financial futures contracts purchased as of October 31, 2009 were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $94,148,823) &#151; 83.7%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>80,372,818</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Expiration</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Notional</FONT></B>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Unrealized</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Contracts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Issue</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Appreciation</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2-Year U.S.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Treasury Bond&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 2009</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 10,793,860</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 86,609</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30-Year U.S.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Treasury Bond</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>December 2009</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 712,575</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,363</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Institutional Class, 0.18% (i)(j)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>33,286,296</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>33,286,296</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 94,972</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Short-Term Securities</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $33,286,296) &#151; 34.6%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>33,286,296</FONT>&nbsp;</TD>
     <TD align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Credit default swaps on single-name issue &#151; buy protection outstanding as of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>October 31, 2009 were as follows:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Investments (Cost &#151; $127,435,119*) &#151; 118.3%</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>113,659,114</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Other Assets Less Liabilities &#151; 23.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>22,648,143</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Pay</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Notional</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Shares, at Redemption Value &#151; (41.9)%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(40,258,949)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Fixed</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Counter-</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Unrealized</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 96,048,308</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Issuer</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Rate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>party</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Expiration</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Depreciation</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=5 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>* The cost and unrealized appreciation (depreciation) of investments as of October 31,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nordstrom, Inc. 5.20%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Deutsche</FONT>&nbsp;</TD>
     <TD colSpan=2 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>June</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank AG</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2014</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 1,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (168,952)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aggregate cost</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 127,460,901</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gross unrealized appreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 2,075,593</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gross unrealized depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(15,877,380)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net unrealized depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (13,801,787)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=5 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>institutional investors.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(b) Security is perpetual in nature and has no stated maturity date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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<TR vAlign=bottom>
     <TD colSpan=3 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(c) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(d) Non-income producing security.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(e) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=5 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(f) All or a portion of the security has been pledged as collateral in connection with</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>open reverse repurchase agreements.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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<TR vAlign=bottom>
     <TD colSpan=5 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(g) All or a portion of the security has been pledged as collateral in connection with</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>open swaps.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=5 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(h) All or a portion of the security has been pledged as collateral in connection with</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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<TR vAlign=bottom>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>open financial futures contracts.</FONT>&nbsp;</TD>
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     <TD colSpan=5 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(i) Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
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     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net</FONT></B>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Affiliate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Activity</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Income</FONT></B>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
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     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Institutional Class</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 33,286,296</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 73,357</FONT>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Series, LLC</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cash Sweep Series</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$(15,938,424)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 56,701</FONT>&nbsp;</TD>
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     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(j) Represents the current yield as of report date.</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>12</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
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     <TD colSpan=3 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
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     <TD colSpan=2 align=center><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (concluded)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust I, Inc. (PSW)</FONT></B>&nbsp;</TD></TR>
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     <TD colSpan=2 align=right><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fair Value Measurements &#151; Various inputs are used in determining the fair value of</FONT>&nbsp;</TD>
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     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Other Financial</FONT></B>&nbsp;</TD></TR>
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     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>investments, which are as follows:</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Valuation Inputs</FONT></B>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Instruments</FONT></B><B><SUP><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>1</FONT></SUP></B>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1 &#151; price quotations in active markets/exchanges for identical assets</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Assets</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Liabilities</FONT></B>&nbsp;</TD></TR>
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     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>and liabilities</FONT>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 94,972</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (168,952)</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 94,972</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (168,952)</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT>&nbsp;</TD>
     <TD colSpan=4 align=right><SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Other financial instruments are financial futures contracts and swaps. Financial</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
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     <TD colSpan=4 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>futures contracts and swaps are valued at the unrealized appreciation/depreci-</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ation on the instrument.</FONT>&nbsp;</TD>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following is a reconciliation of investments for unobservable inputs (Level 3)</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>used in determining fair value:</FONT>&nbsp;</TD>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
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     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investments in</FONT></B>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Securities</FONT></B>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>the Fund&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD></TR>
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     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following tables summarize the inputs used as of October 31, 2009 in</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Balance, as of October 31, 2008</FONT>&nbsp;</TD>
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     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>determining the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Accrued discounts/premiums</FONT>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Realized gain (loss)</FONT>&nbsp;</TD>
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     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investments in</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
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     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Valuation Inputs</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Securities</FONT></B>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net purchases (sales)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Assets</FONT></B>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net transfers in/out Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 576,450</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Balance, as of October 31, 2009</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 576,450</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 19,302,737</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,152,040</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>33,286,296</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 1</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>57,741,073</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments</FONT><SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>:</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>31,533,600</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,390,086</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,331,917</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>85,988</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 2</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>55,341,591</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>576,450</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 113,659,114</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=center><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>13</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD width="17%"></TD>
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     <TD colSpan=5 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments </FONT><FONT color=#0035c4 size=2 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>October 31, 2009</FONT>&nbsp;</TD>
     <TD colSpan=3 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust II, Inc. (PSY)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 2.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance (concluded)</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Oil Insurance Ltd., 7.56% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 5,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 3,531,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Principal Life Insurance Co., 8.00%, 3/01/44 (a) $</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,325</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 5,663,683</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,967</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,816,396</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Progressive Corp., 6.70%, 6/15/67 (c)(f)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,751,894</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Structured Asset Repackaged Trust, Series 2004-1,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Reinsurance Group of America,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>0.78%, 4/21/11 (a)(c)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>299</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>266,121</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.75%, 12/15/65 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,325,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Corporate Bonds &#151; 2.6%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,613,517</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Travelers Cos., Inc., 6.25%, 3/15/67 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,700,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (a)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>379</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>306,418</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,312</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,492,720</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Securities</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Zenith National Insurance Capital Trust I,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8.55%, 8/01/28 (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,750</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,581,250</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>85,641,493</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Multi-Utilities &#151; 3.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Building Products &#151; 0.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Dominion Resources Capital Trust I,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>C8 Capital SPV Ltd., 6.64% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,915</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,760,545</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7.83%, 12/01/27</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,022,080</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 5.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Dominion Resources, Inc., 7.50% (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,449</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,340,020</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Ameriprise Financial, Inc., 7.52%, 6/01/66 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,600</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,460,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,362,100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lehman Brothers Holdings Capital Trust V,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3.64% (b)(c)(d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>640</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Oil, Gas &amp; Consumable Fuels &#151; 1.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>State Street Capital Trust III, 8.25% (b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,920</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,945,200</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Enterprise Products Operating LLC,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>State Street Capital Trust IV, 1.30%, 6/01/67 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>18,235</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,233,953</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8.38%, 8/01/66 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,960,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,723,180</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>21,639,793</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,683,180</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 12.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ABN AMRO North America Holding, Preferred</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Road &amp; Rail &#151; 0.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital Repackaging Trust I, 6.52% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,035</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,544,850</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BNSF Funding Trust I, 6.61%, 12/15/55 (c)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,750</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,548,437</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank One Capital III, 8.75%, 9/01/30</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,252,786</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Capital Trusts &#151; 49.3%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>201,733,947</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of Ireland Capital Funding II, LP,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5.57% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,715</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>754,600</FONT>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of Ireland Capital Funding III, LP,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.11% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,951</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,298,440</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc, 5.93% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,950,000</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>First Empire Capital Trust II, 8.28%, 6/01/27</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,630</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,757,751</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Deutsche Bank Contingent Capital Trust II, 6.55%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>530</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,817</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HSBC America Capital Trust I, 7.81%, 12/15/26 (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,978,198</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HSBC Capital Funding LP/Jersey Channel Islands,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 8.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10.18% (a)(b)(c)(f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,835</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,753,650</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc, 8.13%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>225,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,298,750</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HSBC Finance Capital Trust IX, 5.91%, 11/30/35 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,767,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>First Tennessee Bank NA, 3.90% (a)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,650</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,332,266</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lloyds Banking Group Plc, 6.66%, 11/21/49 (a)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,250,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HSBC USA, Inc.:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>National City Preferred Capital Trust I, 12.00% (b)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,100</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,258,983</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series D, 4.50% (c)(g)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>131,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,763,066</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>NationsBank Capital Trust III, 0.83%, 1/15/27 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,470</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,627,037</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series H, 6.50%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>120,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,436,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,550</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,848,910</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Provident Financial Group, Inc., 7.75%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>166,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,024,050</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Santander Perpetual SA Unipersonal,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Royal Bank of Scotland Group Plc, Series M, 6.40%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>155,100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.67%, 10/29/49 (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,125</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,026,555</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SG Preferred Capital II, 6.30% (a)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>23,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,800,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SunTrust Preferred Capital I, 5.85% (b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>307</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>200,318</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Santander Finance Preferred SA Unipersonal, 6.80%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>117,094</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,203,692</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>49,269,078</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>34,012,924</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 3.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 1.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AgFirst Farm Credit Bank, 8.39%, 12/15/16 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,041,668</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cobank ACB, 7.00% (a)(b)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>152,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,305,758</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Farm Credit Bank of Texas, Series 1, 7.56% (b)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,753,875</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ING Groep NV, 7.20%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>140</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,451,769</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ING Capital Funding Trust III, 8.44% (b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,066</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,171,265</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,757,527</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase Capital XXIII, 1.44%, 5/15/77 (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,500</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,282,513</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 3.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,249,321</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Alabama Power Co.:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 0.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5.83%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>349,300</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPL Capital Funding, 6.70%, 3/30/67 (c)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,580,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.50%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>145,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,350,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Entergy Arkansas, Inc., 6.45%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>114,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,420,281</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 20.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Entergy Louisiana LLC, 6.95%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>49,850</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,665,314</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AON Corp., 8.21%, 1/01/27</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,475,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Interstate Power &amp; Light Co., Series B, 8.38%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>80,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,220,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AXA SA, 6.38% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,470</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,415,825</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Ace Capital Trust II, 9.70%, 4/01/30</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,526,140</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,004,895</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Allstate Corp., 6.50%, 5/15/57 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,775</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,922,625</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 12.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Chubb Corp., 6.38%, 3/29/67 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,815,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aspen Insurance Holdings Ltd., 7.40% (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>194,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,938,200</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Farmers Exchange Capital, 7.05%, 7/15/28 (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,141,357</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Axis Capital Holdings Ltd.:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>GE Global Insurance Holding Corp., 7.75%, 6/15/30</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,207,480</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series A, 7.25%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>129,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,915,715</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Genworth Financial, Inc., 6.15%, 11/15/66 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,010,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series B, 7.50% (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>36,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,695,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,925</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,071,250</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Endurance Specialty Holdings Ltd., Series A, 7.75%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>139,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,048,480</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lincoln National Corp., 7.00%, 5/17/66 (c)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,350</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,747,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MetLife, Inc., Series B, 6.50%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>904,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19,652,612</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MetLife, Inc., 6.40%, 12/15/66</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,825</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,912,156</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Prudential Plc, 6.50%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>92,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,931,160</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nationwide Life Global Funding I, 6.75%, 5/15/67</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,305,545</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>RenaissanceRe Holding Ltd., Series D, 6.60%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>435,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,965,350</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Oil Casualty Insurance Ltd., 8.00%, 9/15/34 (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,605</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,271,150</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Zurich RegCaPS Funding Trust, 6.58% (a)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,800</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,699,125</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50,846,142</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>14</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=3 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (continued)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust II, Inc. (PSY)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Multi-Utilities &#151; 0.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Pacific Gas &amp; Electric Co., Series A, 6.00%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>140,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 3,738,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=5 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Institutional Class, 0.18% (h)(i)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>41,019,397</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 41,019,397</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Real Estate Investment Trusts (REITs) &#151; 5.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Short-Term Securities</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BRE Properties, Inc., Series D, 6.75%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>35,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>718,200</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $41,019,397) &#151; 10.0%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>41,019,397</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Developers Diversified Realty Corp., 8.00%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>400,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,156,000</FONT>&nbsp;</TD>
     <TD colSpan=6 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Investments (Cost &#151; $524,066,199*) &#151; 107.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>440,148,651</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>First Industrial Realty Trust, Inc., 6.24% (c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,390</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,058,322</FONT>&nbsp;</TD>
     <TD colSpan=5 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Other Assets Less Liabilities &#151; 33.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>138,235,005</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Firstar Realty LLC, 8.88% (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,412,500</FONT>&nbsp;</TD>
     <TD colSpan=6 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Shares, at Redemption Value &#151; (41.3)%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(169,090,727)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Kimco Realty Corp., Series F, 6.65%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,011,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Public Storage:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 409,292,929</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series F, 6.45%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>40,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>850,000</FONT>&nbsp;</TD>
     <TD colSpan=10 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>* The cost and unrealized appreciation (depreciation) of investments as of October 31,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series I, 7.25%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>160,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,816,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series M, 6.63%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>71,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,542,255</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Regency Centers Corp., Series D, 7.25%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>100,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,175,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aggregate cost</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 525,840,523</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>21,739,777</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gross unrealized appreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 9,977,374</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gross unrealized depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(95,669,246)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Wireless Telecommunication Services &#151; 0.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Centaur Funding Corp., 9.08% (a)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,423</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,431,329</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net unrealized depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (85,691,872)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Preferred Stocks &#151; 32.9%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>134,541,411</FONT>&nbsp;</TD>
     <TD colSpan=10 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>institutional investors.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(b) Security is perpetual in nature and has no stated maturity date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD colSpan=7 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(c) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Communications Equipment &#151; 0.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(d) Non-income producing security.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate-Backed Trust Certificates, Motorola</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Debenture Backed Series 2002-14,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(e) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8.38%, 11/15/28</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>80</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,778,167</FONT>&nbsp;</TD>
     <TD colSpan=10 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(f) All or a portion of security held as collateral in connection with open reverse repur-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Consumer Finance &#151; 3.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>chase agreements.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital One Capital II, 7.50%, 6/15/66</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>668</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,799,807</FONT>&nbsp;</TD>
     <TD colSpan=10 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(g) All or a portion of security has been pledged as collateral in connection with open</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 2.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>financial futures contracts.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Georgia Power Co., Series O, 1.48%, 4/15/33</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,229,393</FONT>&nbsp;</TD>
     <TD colSpan=10 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(h) Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HECO Capital Trust III, 6.50%, 3/18/34</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,167,634</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>National Rural Utilities Cooperative Finance Corp.,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.75%, 2/15/43</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,236,387</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPL Energy Supply LLC, 7.00%, 7/15/46</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>233</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,970,175</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Affiliate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Activity</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Income</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,603,589</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Gas Utilities &#151; 3.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Institutional Class</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 41,019,397</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 70,651</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Southwest Gas Capital II, 7.70%, 9/15/43</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>605</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,940,766</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Series, LLC</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cash Sweep Series</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$(28,803,004)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 80,088</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 2.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ABN AMRO North America Capital Funding Trust II,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(i) Represents the current yield as of report date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2.87% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>477,570</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For Fund compliance purposes, the Fund&#146;s industry classifications refer to any one</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lincoln National Capital VI, Series F,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.75%, 9/11/52</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,061,735</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>W.R. Berkley Capital Trust II, 6.75%, 7/26/45</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>295</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,578,745</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>This definition may not apply for purposes of this report, which may combine indus-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,118,050</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>try sub-classifications for reporting ease.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Trust Preferreds &#151; 12.7%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>52,240,379</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Reverse repurchase agreements outstanding as of October 31, 2009 were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Preferred Securities &#151; 94.9%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>388,515,737</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Interest</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trade</FONT></B>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Maturity</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net Closing</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Face</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Long-Term Investments</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Counterparty</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Rate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $483,046,802) &#151; 97.5%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>399,129,254</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>0.75%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10/16/09</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11/16/09 $ 9,516,732</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 9,510,590</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Financial futures contracts purchased as of October 31, 2009 were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Expiration</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Notional</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Unrealized</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Contracts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Issue</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Appreciation</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>25</FONT>&nbsp;</TD>
     <TD colSpan=2 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30-Year U.S.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Treasury Bonds December 2009</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$2,969,061</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 34,845</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Credit default swaps on single-name issue &#151; buy protection outstanding as of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>October 31, 2009 were as follows:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Pay</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Notional</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Fixed</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Counter-</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Unrealized</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Issuer</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Rate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>party</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Expiration</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Depreciation</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nordstrom, Inc.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5.20%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Deutsche</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>June</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank AG</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2014</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 2,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (337,904)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>15</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=2 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (concluded)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust II, Inc. (PSY)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=center><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fair Value Measurements &#151; Various inputs are used in determining the fair value of</FONT>&nbsp;</TD>
     <TD colSpan=5 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following tables summarize the inputs used as of October 31, 2009 in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>investments, which are as follows:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>determining the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1 &#151; price quotations in active markets/exchanges for identical assets</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investments in</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>and liabilities</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Valuation Inputs</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Securities</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Assets</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 84,696,966</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>51,762,809</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>41,019,397</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>177,479,172</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>199,462,797</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,347,396</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>the Fund&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>36,044,445</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>477,570</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>246,332,208</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,271,150</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>266,121</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,800,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16,337,271</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 440,148,651</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Other Financial</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Valuation Inputs</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Instruments</FONT></B><B><SUP><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>1</FONT></SUP></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Assets</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Liabilities</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 34,845</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (337,904)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 34,845</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (337,904)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=right><SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Other financial instruments are financial futures contracts and swaps. Financial</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>futures contracts and swaps are valued at the unrealized appreciation/</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>depreciation on the instrument.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investments in Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Corporate</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Bonds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Balance, as of October 31, 2008</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Accrued discounts/premiums</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Realized gain (loss)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net purchases (sales)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net transfers in/out of Level 3</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 2,271,150</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 266,121</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 13,800,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 16,337,271</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Balance, as of October 31, 2009</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 2,271,150</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 266,121</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 13,800,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 16,337,271</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>16</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=4 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments </FONT><FONT color=#0035c4 size=2 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>October 31, 2009</FONT>&nbsp;</TD>
     <TD colSpan=4 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust III (BPP)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 0.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 12.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>RESPARCS Funding LP I, 8.00% (a)(b)(c)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 4,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 1,000,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AXA SA, 6.38% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 7,150</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 6,059,625</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Containers &amp; Packaging &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Allstate Corp., 6.50%, 5/15/57 (e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,350</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,429,250</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Impress Holdings BV, 3.41%, 9/15/13 (d)(e)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>240</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>228,300</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Chubb Corp., 6.38%, 3/29/67 (e)(h)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>816,750</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Genworth Financial, Inc., 6.15%, 11/15/66 (e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,475</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>988,250</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Hotels, Restaurants &amp; Leisure &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Liberty Mutual Group, Inc., 10.75%, 6/15/88 (d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>945,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Greektown Holdings, LLC, 10.75%, 12/01/13 (b)(c)(d)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>362</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>72,400</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lincoln National Corp., 7.00%, 5/17/66 (e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>738,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 5.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MetLife, Inc., 6.40%, 12/15/66</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>779,625</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Kingsway America, Inc., 7.50%, 2/01/14</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,200,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nationwide Life Global Funding I, 6.75%, 5/15/67</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>682,141</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>QBE Insurance Group Ltd., 9.75%, 3/14/14 (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,975</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,398,488</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Progressive Corp., 6.70%, 6/15/67 (e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>788,352</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Reinsurance Group of America, 6.75%, 12/15/65 (e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,007,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,598,488</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Travelers Cos., Inc., 6.25%, 3/15/67 (e)(h)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>810,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Machinery &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>White Mountains Re Group Ltd., 7.51% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,600</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,147,808</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AGY Holding Corp., 11.00%, 11/15/14</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>460</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>374,900</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>190</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>153,613</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,209</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,789,290</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Media &#151; 1.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Zenith National Insurance Capital Trust I,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>CMP Susquehanna Corp., 4.75%, 5/15/14 (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>180</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8.55%, 8/01/28 (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,800</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,719,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Comcast Holdings Corp., 2.00%, 11/15/29 (f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>110</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,089,285</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Local Insight Regatta Hldgs, Inc., 11.00%, 12/01/17</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>700</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>343,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>24,854,204</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,432,465</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Multi-Utilities &#151; 0.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Puget Sound Energy, Inc., Series A, 6.97%, 6/01/67 (e)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>925</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>809,301</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Oil, Gas &amp; Consumable Fuels &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>EXCO Resources, Inc., 7.25%, 1/15/11</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>75</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>74,625</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Oil, Gas &amp; Consumable Fuels &#151; 0.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>TransCanada PipeLines Ltd., 6.35%, 5/15/67 (e)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>837,716</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Paper &amp; Forest Products &#151; 0.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>International Paper Co., 8.70%, 6/15/38</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,037,019</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Capital Trusts &#151; 31.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>65,062,367</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Professional Services &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#629be2 align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#629be2 align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#629be2 align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#629be2 align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>FTI Consulting, Inc., 7.75%, 10/01/16</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>100</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>100,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Specialty Retail &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lazy Days&#146; R.V. Center, Inc., 11.75%, 5/15/12 (b)(c)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,182</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,820</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Corporate Bonds &#151; 8.3%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16,930,517</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lehman Brothers Holdings Inc., Series D, 5.67% (b)(c)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>31,100</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,641</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#629be2 align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#629be2 align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#629be2 align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#629be2 align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 8.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Banesto Holdings, Ltd. Series A, 10.50% (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>669,375</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc, 8.13%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>100,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,355,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>First Republic Preferred Capital Corp., 7.25%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>117,045</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,130,219</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HSBC USA, Inc., Series H, 6.50%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>330,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,699,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Royal Bank of Scotland Group Plc, Series M, 6.40%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>103,400</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Building Products &#151; 0.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Santander Finance Preferred SA Unipersonal 6.80%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>38,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,053,360</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>C8 Capital SPV Ltd., 6.64% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,945</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,371,458</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Union Planter Preferred Funding Corp., 7.75% (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>60</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,550,625</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 3.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>17,560,979</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>State Street Capital Trust III, 8.25% (a)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,385</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,396,952</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 2.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>State Street Capital Trust IV, 1.30%, 6/01/67 (e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,675</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,491,006</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ING Groep NV, 7.20%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>70</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,225,885</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,887,958</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase &amp; Co., Series E, 6.15%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>75,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,531,750</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 9.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,757,635</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of Ireland Capital Funding II, LP, 5.57% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>854</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>375,760</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 0.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of Ireland Capital Funding III, LP, 6.11% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,471</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>647,240</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Alabama Power Co., 6.50%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,500,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc, 5.93% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>890</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>694,200</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>CBA Capital Trust I, 5.81% (a)(d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,550,000</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 15.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>FCB/NC Capital Trust I, 8.05%, 3/01/28</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,100</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>936,369</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Arch Capital Group Ltd., Series A, 8.00%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>117,414</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,841,419</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aspen Insurance Holdings Ltd., 7.40% (e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>115,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,334,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lloyds TSB Bank Plc, 6.90% (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,399</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,343,240</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Endurance Specialty Holdings Ltd., Series A, 7.75%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>172,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,775,560</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>NBP Capital Trust III, 7.38% (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,485,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MetLife, Inc., Series B, 6.50%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>314,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,834,085</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>National City Preferred Capital Trust I, 12.00% (a)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>600</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>686,718</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PartnerRe Ltd., Series C, 6.75%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>209,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,634,022</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,725</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,870,245</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Prudential Plc, 6.50%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>62,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,295,800</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Santander Perpetual SA Unipersonal, 6.67%(a)(d)(e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>625</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>570,308</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Prudential Plc, 6.50% (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,875,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SunTrust Preferred Capital I, 5.85% (a)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>303</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>197,708</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>RenaissanceRe Holding Ltd., Series D, 6.60%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>210,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,328,100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Wells Fargo Capital XIII Series GMTN, 7.70% (a)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,581,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Zurich RegCaPS Funding Trust, 6.58% (d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,571,250</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Westpac Capital Trust IV, 5.26% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,367,210</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>32,489,736</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19,304,998</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Media &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 4.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>CMP Susquemanna Radio Holdings Corp.,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase Capital XXI, Series U,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>0.00% (b)(d)(e)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,052</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1.23%, 2/02/37 (e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,125</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,862,898</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Real Estate Investment Trusts (REITs) &#151; 2.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase Capital XXIII, 1.44%, 5/15/77 (e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,190</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,359,834</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BRE Properties, Inc., Series D, 6.75%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>410,400</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,222,732</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Public Storage:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 0.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series F, 6.45%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>425,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPL Capital Funding, 6.70%, 3/30/67 (e)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>774,000</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series M, 6.63%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>35,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>750,750</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SunTrust Real Estate Investment Trust, 9.00% (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,027,189</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,613,339</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Preferred Stocks &#151; 29.8%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>60,931,330</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>17</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=4 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (continued)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust III (BPP)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 1.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Structured Asset Trust Unit Repackagings:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=5 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Institutional Class, 0.18% (j)(k)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>51,450,797</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 51,450,797</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Credit Suisse First Boston (USA), Inc., Debenture</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Short-Term Securities</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Backed, Series 2003-13, 6.25%, 7/15/32</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 250,671</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $51,450,797) &#151; 25.2%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>51,450,797</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Goldman Sachs Group, Inc., Debenture Backed,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series 2003-06, 6.00%, 2/15/33</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>103</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,179,215</FONT>&nbsp;</TD>
     <TD colSpan=6 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Investments (Cost &#151; $256,459,826*) &#151; 109.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>223,807,066</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Other Assets Less Liabilities &#151; 24.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50,753,074</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,429,886</FONT>&nbsp;</TD>
     <TD colSpan=6 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Shares, at Redemption Value &#151; (34.5)%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(70,426,884)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 2.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 204,133,256</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Mizuho Capital Investment 1 Ltd., 6.69% (a)(d)(e)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,170,930</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=10 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>* The cost and unrealized appreciation (depreciation) of investments as of October 31,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPLUS Trust Certificates, Series VAL-1 Class A,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7.25%, 4/15/32</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>263,407</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aggregate cost</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 257,997,371</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Food Products &#151; 1.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gross unrealized appreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 3,697,471</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate-Backed Trust Certificates, Kraft Foods, Inc.,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gross unrealized depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>( 37,887,776)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Debenture Backed, Series 2003-11,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net unrealized depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ ( 34,190,305)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5.88%, 11/01/31</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>100</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,417,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(a) Security is perpetual in nature and has no stated maturity date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 1.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Everest Re Capital Trust, 6.20%, 3/29/34</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>597,330</FONT>&nbsp;</TD>
     <TD colSpan=5 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(b) Non-income producing security.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Financial Security Assurance Holdings Ltd.,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(c) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5.60%, 7/15/03</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>193,235</FONT>&nbsp;</TD>
     <TD colSpan=10 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Phoenix Cos., Inc., 7.45%, 1/15/32</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>79</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,423,286</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,213,851</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>institutional investors.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Media &#151; 6.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(e) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Comcast Corp.:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(f) Convertible security.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7.00%, 9/15/55</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>50</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,210,942</FONT>&nbsp;</TD>
     <TD colSpan=10 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(g) All or a portion of security held as collateral in connection with open financial</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.63%, 5/15/56</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>470</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,786,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>futures contracts.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate-Backed Trust Certificates, News</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=10 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(h) All or a portion of security held as collateral in connection with open reverse repur-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>America Debenture Backed, Series 2002-9,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>chase agreements.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8.13%, 12/01/45</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>169,606</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=10 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(i) Warrants entitle the Fund to purchase a predetermined number of shares of com-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,167,048</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>mon stock and are non-income producing. The purchase price and number of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Oil, Gas &amp; Consumable Fuels &#151; 1.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>shares are subject to adjustment under certain conditions until the expiration date.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nexen, Inc., 7.35%, 11/01/43</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>155</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,623,900</FONT>&nbsp;</TD>
     <TD colSpan=10 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(j) Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Wireless Telecommunication Services &#151; 0.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Structured Repackaged Asset-Backed Trust Securities,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Sprint Capital Corp., Debenture Backed, Series</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Affiliate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Activity</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Income</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2004-2, 6.50%, 11/15/28</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>103</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,526,233</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Trust Preferreds &#151; 14.1%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>28,812,555</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Institutional Class</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$51,450,797</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$127,321</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Preferred Securities &#151; 75.8%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>154,805,952</FONT>&nbsp;</TD>
     <TD colSpan=6 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(k) Represents the current yield as of report date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For Fund compliance purposes, the Fund&#146;s industry classifications refer to any one</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Warrants (i)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>This definition may not apply for purposes of this report, which may combine indus-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Media &#151; 0.0%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>try sub-classifications for reporting ease.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>CMP Susquemanna Radio Holdings Corp.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Reverse repurchase agreements outstanding as of October 31, 2009 were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(expires 3/26/19) (d)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,345</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Interest</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trade</FONT></B>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Maturity</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net Closing</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Face</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Warrants &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Counterparty</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Rate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>0.75%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10/16/09</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11/02/09 $13,239,375</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$13,234,688</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Financial futures contracts purchased as of October 31, 2009 were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investment Companies</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Expiration</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Notional</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Unrealized</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Contracts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Issue</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Appreciation</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Ultra Short Real Estate Proshares</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>60,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>619,800</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Investment Companies &#151; 0.3%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>619,800</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14</FONT>&nbsp;</TD>
     <TD colSpan=2 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30-Year U.S.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=6 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Treasury Bond December 2009 $ 1,662,675</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 19,513</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Long Term Investments</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $205,009,029) &#151; 84.4%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>172,356,269</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=9 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Credit default swaps on single-name issue &#151; buy protection outstanding as of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>October 31, 2009 were as follows:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Pay</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Notional</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Fixed</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Counter-</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Unrealized</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Issuer</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Rate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>party</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Expiration</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Depreciation</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nordstrom, Inc.</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5.20%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Deutsche</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>June</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank AG</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2014</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$1,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (168,952)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>18</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left>&nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR></TABLE><BR>
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<TR>
     <TD width="51%"></TD>
     <TD width="19%"></TD>
     <TD width="6%"></TD>
     <TD width="5%"></TD>
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     <TD width="2%"></TD>
     <TD width="7%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (concluded)</FONT>&nbsp;</TD>
     <TD colSpan=6 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust III (BPP)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fair Value Measurements &#151; Various inputs are used in determining the fair value of</FONT>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following tables summarize the inputs used as of October 31, 2009 in deter-</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>investments, which are as follows:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>mining the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1 &#151; price quotations in active markets/exchanges for identical assets</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investments in</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>and liabilities</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Valuation Inputs</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Securities</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2 &#151; other observable inputs (including, but not limited to: quoted prices</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Assets</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>for similar assets or liabilities in markets that are active, quoted prices for iden-</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>tical or similar assets or liabilities in markets that are not active, inputs other</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>than quoted prices that are observable for the assets or liabilities (such as</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 46,237,891</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>24,448,090</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>risks and default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Investment Companies</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>619,800</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>51,450,797</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>122,756,578</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The inputs or methodology used for valuing securities are not necessarily an</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>indication of the risk associated with investing in those securities. For information</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16,918,517</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>about the Fund&#146;s policy regarding valuation of investments and other significant</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>65,062,367</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>accounting policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,666,250</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,364,165</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>98,011,299</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,027,189</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,039,189</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 223,807,066</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Other Financial</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Valuation Inputs</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Instruments</FONT></B><B><SUP><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>1</FONT></SUP></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Assets</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Liabilities</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 19,513</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (168,952)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 19,513</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (168,952)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left>&nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Other financial instruments are financial futures contracts and swaps.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Financial futures contracts and swaps are valued at the unrealized</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>appreciation/depreciation on the instrument.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investments in Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Corporate</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Bonds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Balance, as of October 31, 2008</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Accrued discounts/premiums</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Realized gain (loss)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net purchases (sales)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net transfers in/out of Level 3</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 12,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 3,027,189</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 3,039,189</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Balance, as of October 31, 2009</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 12,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 3,027,189</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 3,039,189</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD colSpan=3 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>19</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=4 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments </FONT><FONT color=#0035c4 size=2 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>October 31, 2009</FONT>&nbsp;</TD>
     <TD colSpan=3 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust IV (BTZ)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Common Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Common Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Aerospace &amp; Defense &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 0.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Honeywell International, Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 64,602</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of America Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>36,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 536,544</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lockheed Martin Corp.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>261,402</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase &amp; Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>21,100</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>881,347</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Northrop Grumman Corp.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>260,676</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>NYSE Euronext</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,100</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>235,235</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>United Technologies Corp.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,800</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>110,610</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,653,126</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>697,290</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Telecommunication Services &#151; 0.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Air Freight &amp; Logistics &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AT&amp;T Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>38,887</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>998,229</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>United Parcel Service, Inc. Class B</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,800</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>472,384</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>CenturyTel, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,339</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>140,844</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Auto Components &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Verizon Communications, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20,900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>618,431</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Johnson Controls, Inc.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,700</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>88,504</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,757,504</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Beverages &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Coca-Cola Co.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>762,333</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>American Electric Power Co., Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>66,484</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PepsiCo, Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,800</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>351,190</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Duke Energy Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>319,564</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,113,523</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>FirstEnergy Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>56,264</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Progress Energy, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>202,662</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Biotechnology &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Southern Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,700</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>271,353</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Amgen, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>370,737</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Biogen Idec, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>105,325</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>916,327</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Celgene Corp. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>178,675</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electrical Equipment &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Genzyme Corp. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>86,020</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Emerson Electric Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>411,475</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gilead Sciences, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,100</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>302,105</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Rockwell Automation, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,400</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>221,130</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,042,862</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>632,605</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electronic Equipment, Instruments</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Federated Investors, Inc. Class B</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>175,875</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>&amp; Components &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Goldman Sachs Group, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,360</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>231,431</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corning, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,600</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>125,646</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Morgan Stanley</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>96,360</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Tyco Electronics Ltd.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,200</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>110,500</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>503,666</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>236,146</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Chemicals &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Energy Equipment &amp; Services &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Air Products &amp; Chemicals, Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>69,417</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>National Oilwell Varco, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,600</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>229,544</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>E.I. du Pont de Nemours &amp; Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>470,936</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Schlumberger Ltd.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>342,100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Monsanto Co.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>194,822</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Smith International, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,418</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>150,241</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPG Industries, Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>220,077</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>721,885</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>955,252</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Food &amp; Staples Retailing &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 0.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>CVS Caremark Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>120,020</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Citizens Banking Corp. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,406,596</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,856,771</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SUPERVALU, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>131,721</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>M&amp;T Bank Corp.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>263,970</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SYSCO Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,600</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>253,920</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Regions Financial Corp.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>38,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>185,856</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Wal-Mart Stores, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>755,136</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Wells Fargo &amp; Co.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>33,300</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>916,416</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Walgreen Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,400</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>242,112</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,223,013</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,502,909</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Services &amp; Supplies &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Food Products &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Avery Dennison Corp.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>281,635</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Kraft Foods, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,135</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>333,955</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Pitney Bowes, Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>264,600</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Sara Lee Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20,200</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>228,058</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Waste Management, Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,700</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>230,076</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>562,013</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>776,311</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Health Care Equipment &amp; Supplies &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Communications Equipment &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Baxter International, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>102,714</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cisco Systems, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>23,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>534,690</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Becton Dickinson &amp; Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>232,424</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Motorola, Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>34,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>298,236</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Boston Scientific Corp. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>47,908</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>QUALCOMM, Inc.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>368,549</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Covidien Plc</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>219,024</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,201,475</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Medtronic, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>71,400</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Computers &amp; Peripherals &#151; 0.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>673,470</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Apple, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,131,000</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Health Care Providers &amp; Services &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Dell, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>215,901</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aetna, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>62,472</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>EMC Corp. (a)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>228,933</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Express Scripts, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>271,728</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Hewlett-Packard Co.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>417,648</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Medco Health Solutions, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>241,316</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>International Business Machines Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,800</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>699,538</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>UnitedHealth Group, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>62,280</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,693,020</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>WellPoint, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,500</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>210,420</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Distributors &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>848,216</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Genuine Parts Co.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,300</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>255,427</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Hotels, Restaurants &amp; Leisure &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>McDonald&#146;s Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>509,907</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Starwood Hotels &amp; Resorts Worldwide, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,300</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>357,438</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>867,345</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>20</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=3 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (continued)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust IV (BTZ)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Common Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center>&nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Common Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Household Durables &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Multiline Retail &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Black &amp; Decker Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,700</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 269,154</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Macy's, Inc.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>18,400</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 323,288</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fortune Brands, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,400</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>249,280</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Oil, Gas &amp; Consumable Fuels &#151; 0.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>KB Home</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,100</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>214,118</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Anadarko Petroleum Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>304,650</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Whirlpool Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,800</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>415,222</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Apache Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>169,416</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,147,774</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Chevron Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,025,636</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Household Products &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ConocoPhillips</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>652,340</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Clorox Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,200</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>248,766</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Exxon Mobil Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>27,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,992,426</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Procter &amp; Gamble Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>17,400</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,009,200</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Hess Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>202,538</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Massey Energy Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>157,086</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,257,966</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Occidental Petroleum Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>128,996</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>IT Services &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Peabody Energy Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>217,745</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Automatic Data Processing, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,700</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>266,660</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Southwestern Energy Co. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>239,690</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cognizant Technology Solutions Corp. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,400</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>131,410</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Spectra Energy Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>281,064</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MasterCard, Inc. Class A</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>409</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>89,579</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>XTO Energy, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>286,764</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Paychex, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,700</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>275,577</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,658,351</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>763,226</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Paper &amp; Forest Products &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Industrial Conglomerates &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MeadWestvaco Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>349,299</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3M Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,900</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>507,633</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Weyerhaeuser Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,600</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>203,504</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>General Electric Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>43,400</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>618,884</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>552,803</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Textron, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>23,400</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>416,052</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Pharmaceuticals &#151; 0.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,542,569</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Abbott Laboratories</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>525,928</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 0.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bristol-Myers Squibb Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>17,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>388,040</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aflac, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,600</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>439,794</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Eli Lilly &amp; Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>336,699</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Allstate Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,700</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>257,259</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Johnson &amp; Johnson</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>17,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,056,995</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cincinnati Financial Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>215,560</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Merck &amp; Co., Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>494,880</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lincoln National Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>309,790</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Pfizer, Inc. (b)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>31,504</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>536,513</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MetLife, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,600</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>360,718</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Schering-Plough Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>366,600</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Principal Financial Group, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,200</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>230,368</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,705,655</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,813,489</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Real Estate Investment Trusts (REITs) &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Internet &amp; Catalog Retail &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AvalonBay Communities, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>288,876</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Amazon.com, Inc. (a)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>810</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>96,236</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Boston Properties, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>261,311</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Internet Software &amp; Services &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Public Storage</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>88,320</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>eBay, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,300</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>318,461</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Vornado Realty Trust</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,978</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>296,490</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Google, Inc. Class A (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,160</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>621,899</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>934,997</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Yahoo! Inc. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,600</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>152,640</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Road &amp; Rail &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,093,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Norfolk Southern Corp.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>275,058</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Leisure Equipment &amp; Products &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Semiconductors &amp; Semiconductor Equipment &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Mattel, Inc.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,600</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>219,588</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Applied Materials, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,200</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>63,440</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Life Sciences Tools &amp; Services &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Intel Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>40,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>777,777</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Thermo Fisher Scientific, Inc. (a)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,600</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>117,000</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Linear Technology Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>204,452</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Microchip Technology, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,900</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>213,244</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Machinery &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>National Semiconductor Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>122,930</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Caterpillar, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>468,010</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Texas Instruments, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,300</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>218,085</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cummins, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,200</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>180,852</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Deere &amp; Co.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,800</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>127,540</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,599,928</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>776,402</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Software &#151; 0.3%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Autodesk, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,700</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>191,961</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Media &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Microsoft Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>46,100</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,278,353</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Comcast Corp. Class A</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,900</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>100,050</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Oracle Corp. (b)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>21,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>443,100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The DIRECTV Group, Inc. (a)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,400</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>168,320</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,913,414</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>268,370</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Specialty Retail &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Metals &amp; Mining &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Home Depot, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>18,100</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>454,129</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Alcoa, Inc. (b)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>24,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>304,290</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Limited Brands, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16,100</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>283,360</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nucor Corp.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,400</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>215,190</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Staples, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,300</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>266,910</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>519,480</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,004,399</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Multi-Utilities &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Textiles, Apparel &amp; Luxury Goods &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Consolidated Edison, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,400</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>219,672</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>VF Corp.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>206,016</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Dominion Resources, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,200</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>74,998</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Integrys Energy Group, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>190,300</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Thrifts &amp; Mortgage Finance &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Public Service Enterprise Group, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,900</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>235,420</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Hudson City Bancorp, Inc.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>249,660</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>TECO Energy, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,900</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>127,626</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Xcel Energy, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,400</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>196,144</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,044,160</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>21</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=4 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (continued)</FONT>&nbsp;</TD>
     <TD colSpan=4 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust IV (BTZ)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Common Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Tobacco &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks (concluded)</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Altria Group, Inc. (b)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 371,255</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Commonwealth Bank of Australia, 6.02% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 20,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 16,400,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Philip Morris International, Inc.</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16,600</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>786,176</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HSBC Capital Funding LP/Jersey Channel Islands,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,157,431</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10.18% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,330,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lloyds Banking Group Plc, 6.66% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,500,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Common Stocks &#151; 8.2%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>53,634,533</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SMFG Preferred Capital USD 1 Ltd., 6.08% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,637,700</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>SMFG Preferred Capital USD 3 Ltd., 9.50% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,850</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,174,170</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Santander Perpetual SA Unipersonal, 6.67%, (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,186,241</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Shinsei Finance II (Cayman) Ltd., 7.16% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,005</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>588,240</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Standard Chartered Bank, 7.014% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,550,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Wells Fargo &amp; Co. Series K, 7.98% (d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,985</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,157,206</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lehman Brothers Holdings, Inc. (a)(c):</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Wells Fargo Capital XIII Series GMTN, 7.70% (d)(e)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,627,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3.95%, 11/10/09</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 105</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16,537</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>96,798,182</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4.38%, 11/30/10</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>325</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>51,187</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 3.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>67,724</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase Capital XXI Series U,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Computers &amp; Peripherals &#151; 0.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1.23%, 2/02/37 (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,875</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,787,342</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>International Business Machines Corp.,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>JPMorgan Chase Capital XXIII, 1.44%, 5/15/77 (d)(f)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>20,695</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>14,576,213</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8.00%, 10/15/38</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,461,952</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>23,363,555</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 1.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 0.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ING Groep NV, 5.78% (d)(e)(f)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,300,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPL Capital Funding, 6.70%, 3/30/67 (d)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,900</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,354,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Stan IV Ltd., 2.74%, 7/20/11 (d)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>283</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>240,550</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 9.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,540,550</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AXA SA, 6.46% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,885,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 0.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Allstate Corp., 6.50%, 5/15/57 (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,675</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,417,125</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>QBE Insurance Group Ltd., 9.75%, 3/14/14 (g)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,973</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,680,902</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Chubb Corp., 6.38%, 3/29/67 (d)(f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,630,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Liberty Mutual Group, Inc., 10.75%, 6/15/88 (d)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,200,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Metals &amp; Mining &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Lincoln National Corp., 7.00%, 5/17/66 (d)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,255</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,489,100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aleris International, Inc., 10.00%, 12/15/16 (a)(c)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>43,750</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>MetLife, Inc., 6.40%, 12/15/66</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,550</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,941,437</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Multi-Utilities &#151; 1.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nationwide Life Global Funding I, 6.75%, 5/15/67</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,031,740</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Dominion Resources, Inc., 8.88%, 1/15/19</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,098,472</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Progressive Corp., 6.70%, 6/15/67 (d)(f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,503,788</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Paper &amp; Forest Products &#151; 0.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Reinsurance Group of America, 6.75%, 12/15/65 (d)(f)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,625,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>International Paper Co., 8.70%, 6/15/38 (b)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,100</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,571,953</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Swiss Re Capital I LP, 6.854% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,310,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The Travelers Cos., Inc., 6.25%, 3/15/67 (d)(f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,600,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Corporate Bonds &#151; 5.0%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>32,465,303</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>White Mountains Re Group Ltd., 7.506% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,400</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,634,752</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (d)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>599</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>484,286</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (d)(g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,331</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,698,110</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>63,450,338</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investment Companies</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Multi-Utilities &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>UltraShort Real Estate ProShares</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>150,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,549,500</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Puget Sound Energy, Inc. Series A, 6.97%, 6/01/67 (d)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,575</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,377,999</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Investment Companies &#151; 0.2%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,549,500</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Oil, Gas &amp; Consumable Fuels &#151; 1.2%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Enterprise Products Operating LLC, 8.38%, 8/01/66 (d)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,410,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>TransCanada PipeLines Ltd., 6.35%, 5/15/67 (d)(f)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,723,180</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,133,180</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Par</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Real Estate Investment Trusts (REITs) &#151; 1.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Sovereign Real Estate Investment Corp., 12.00% (g)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,500,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Building Products &#151; 0.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Capital Trusts &#151; 35.5%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>232,306,446</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>C8 Capital SPV Ltd., 6.64% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 3,160</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,228,179</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>C10 Capital SPV Ltd., 6.72% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,542,750</FONT>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,770,929</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 3.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Credit Suisse Guernsey Ltd., 5.86% (d)(e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,050</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>866,250</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 4.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>State Street Capital Trust III, 8.25% (d)(e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,740</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,755,016</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>HSBC USA, Inc. Series H, 6.50%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>977,766</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19,848,650</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>State Street Capital Trust IV, 1.30%, 6/01/67 (d)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>25,245</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>16,936,997</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Royal Bank of Scotland Group Plc Series M, 6.40%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>155,100</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>19,558,263</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Santander Finance Preferred SA Unipersonal, 10.50%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>419,881</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,487,944</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 14.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>31,491,694</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BB&amp;T Capital Trust IV, 6.82%, 6/12/77 (d)(f)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>15,300</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,559,625</FONT>&nbsp;</TD>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Financial Services &#151; 2.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of Ireland Capital Funding II, LP, 5.57% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,422</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>625,680</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Cobank ACB, 7.00% (g)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>150,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,235,945</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank of Ireland Capital Funding III, LP, 6.11% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,153</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,027,320</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>ING Groep NV:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays Bank Plc, (d)(e)(g):</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.13%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>200,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,130,000</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5.93%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,120,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7.05%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,800</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>99,470</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6.86%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11,500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>9,315,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7.20%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>213,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,730,192</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7.38%</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>40,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>703,193</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,898,800</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>22</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=3 align=left><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (continued)</FONT>&nbsp;</TD>
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     <TD colSpan=5 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust IV (BTZ)</FONT></B>&nbsp;</TD></TR>
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     <TD align=left>&nbsp;</TD>
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     <TD align=left>&nbsp;</TD>
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     <TD colSpan=4 align=right><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD></TR>
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     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Diversified Telecommunication Services &#151; 0.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AT&amp;T, Inc., 6.38%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 778,580</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Institutional Class, 0.18% (h)(i)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>267,832,781 $</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>267,832,781</FONT>&nbsp;</TD></TR>
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     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 4.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Short-Term Securities</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Alabama Power Co., 6.50%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>100,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,000,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $267,832,781) &#151; 40.9%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>267,832,781</FONT>&nbsp;</TD></TR>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Entergy Louisiana LLC, 6.95%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>40,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,743,482</FONT>&nbsp;</TD>
     <TD colSpan=5 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Investments Before Outstanding Options Written</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Interstate Power &amp; Light Co. Series B, 8.38%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>785,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>21,783,750</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $905,234,626*) &#151; 125.7%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>823,053,616</FONT>&nbsp;</TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>28,527,232</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
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     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 9.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
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     <TD bgColor=#629be2 align=left>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aegon NV, 6.50%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>400,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>6,496,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Arch Capital Group Ltd.:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Options Written</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Contracts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series A, 8.00%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>100,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,420,000</FONT>&nbsp;</TD>
     <TD colSpan=4 align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Exchange-Traded Call Options Written</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series B, 7.88%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>160,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,788,800</FONT>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>S&amp;P 500 Listed Option:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aspen Insurance Holdings Ltd., 7.40% (d)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>655,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,296,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>expiring 11/21/09 at USD 1,090</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>234</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(113,490)</FONT>&nbsp;</TD></TR>
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     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Axis Capital Holdings Ltd. Series B, 7.50% (d)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>180,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>13,477,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>expiring 11/21/09 at USD 1,095</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>21</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(7,770)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Endurance Specialty Holdings Ltd. Series A, 7.75%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>369,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>8,081,100</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>expiring 11/21/09 at USD 1,110</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>145</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(44,950)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PartnerRe Ltd. Series C, 6.75%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>265,600</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,877,728</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>RenaissanceRe Holding Ltd. Series D, 6.60%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>285,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>5,873,850</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Options Written</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=5 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Premiums Received &#151; $828,039) &#151; (0.0)%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(166,210)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>59,311,478</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Investments &#151; 125.7%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>822,887,406</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Real Estate Investment Trusts (REITs) &#151; 0.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Other Assets Less Liabilities &#151; 9.6%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>63,155,825</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BRE Properties, Inc. Series D, 6.75%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>615,600</FONT>&nbsp;</TD>
     <TD colSpan=5 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Preferred Shares, at Redemption Value &#151; (35.3)%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(231,044,104)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>iStar Financial, Inc. Series I, 7.50%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>55,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>385,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Public Storage:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 654,999,127</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series F, 6.45%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>637,500</FONT>&nbsp;</TD>
     <TD colSpan=7 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>* The cost and unrealized appreciation (depreciation) of investments as of October 31,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Series M, 6.63%</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>55,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,179,750</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,817,850</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Aggregate cost</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 918,380,664</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Wireless Telecommunication Services &#151; 1.5%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gross unrealized appreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 26,032,998</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Centaur Funding Corp., 9.08% (g)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10,034,375</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Gross unrealized depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(121,360,046)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Preferred Stocks &#151; 22.3%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 3px double" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>145,860,009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net unrealized depreciation</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (95,327,048)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD bgColor=#629be2 align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(a) Non-income producing security.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Shares</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(b) All or a portion of the security has been pledged as collateral in connection with</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>open financial futures contracts.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Capital Markets &#151; 0.0%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(c) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Credit Suisse Guernsey Ltd., 7.90% (e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>244,950</FONT>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(d) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Commercial Banks &#151; 3.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(e) Security is perpetual in nature and has no stated maturity date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Kazkommerts Finance 2 BV, 9.20% (d)(e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>500</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>315,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Mizuho Capital Investment 1 Ltd., 6.686% (d)(e)(g)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>21,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>17,517,906</FONT>&nbsp;</TD>
     <TD colSpan=7 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(f) All or a portion of the security has been pledged as collateral for open reverse</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>National City Preferred Trust I, 12% (d)(e)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,713</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,249,640</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>repurchase agreements.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>22,082,546</FONT>&nbsp;</TD>
     <TD colSpan=7 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(g) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Electric Utilities &#151; 1.1%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>institutional investors.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>PPL Energy Supply LLC, 7.00%, 7/15/46</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>288</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>7,366,797</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(h) Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Insurance &#151; 1.9%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>AON Corp., 8.21%, 1/01/27</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,960,000</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Ace Capital Trust II, 9.70%, 4/01/30 (f)</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,000</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>4,420,912</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>W.R. Berkley Capital Trust II, 6.75%, 7/26/45</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>171</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>3,807,443</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Affiliate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Activity</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Income</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>12,188,355</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Media &#151; 6.8%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Institutional Class</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$267,832,781</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 479,886</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Comcast Corp., 6.63%, 5/15/56</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,950</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>44,717,395</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(i) Represents the current yield as of report date.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT color=#0035c4 size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Oil, Gas &amp; Consumable Fuels &#151; 0.4%</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>For Fund compliance purposes, the Fund&#146;s industry classifications refer to any one</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nexen, Inc., 7.35%, 11/01/43</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>120</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2,805,001</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Trust Preferreds &#151; 13.6%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>89,405,044</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Preferred Securities &#151; 71.4%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>467,571,499</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>This definition may not apply for purposes of this report, which may combine</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total Long-Term Investments</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>industry sub-classifications for reporting ease.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Cost &#151; $637,401,845) &#151; 84.8%</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>555,220,835</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;<FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Reverse repurchase agreements outstanding as of October 31, 2009 were as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Interest</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Trade</FONT></B>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Maturity</FONT></B>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Net Closing</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Face</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Counterparty</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Rate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Barclays</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank Plc</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>0.75%</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10/16/09</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>11/16/09 $61,616,136</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$61,576,368</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=center><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>23</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD colSpan=9 align=right><FONT color=#0035c4 size=4 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>Schedule of Investments (concluded)</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=right><B><FONT color=#0035c4 size=2 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>BlackRock Credit Allocation Income Trust IV (BTZ)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=right><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Financial futures contracts purchased as of October 31, 2009 were as follows:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Other Financial</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Valuation Inputs</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Instruments</FONT></B><B><SUP><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>1</FONT></SUP></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Unrealized</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Expiration</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Notional</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Appreciation</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Assets</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Liabilities</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Contracts</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Issue</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Date</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Value</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>(Depreciation)</FONT></B>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 982,873</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (311,644)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>422</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>10-Year US</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(675,809)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp; Treasury Bond&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2009</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$49,119,100</FONT>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 934,090</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>35</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30-Year US</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 982,873</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (987,453)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Treasury Bond</FONT>&nbsp;</TD>
     <TD colSpan=2 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>December 2009</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 4,156,686</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>48,783</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>161</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>S&amp;P EMINI</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>December 2009</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 8,461,085</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(145,434)</FONT>&nbsp;</TD>
     <TD colSpan=4 align=right><SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Other financial instruments are financial futures contracts, swaps and options.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 837,439</FONT>&nbsp;</TD>
     <TD colSpan=4 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Financial futures contracts and swaps are valued at the unrealized appreciation/</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>depreciation on the instrument and options are shown at market value.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=right><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Credit default swaps on single-name issue &#151; buy protection oustanding as of</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>October 31, 2009 were as follows:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD colSpan=4 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following is a reconciliation of investments for unobservable inputs (Level 3)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>used in determining fair value:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Pay</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Notional</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Fixed</FONT></B>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Counter-</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Amount</FONT></B>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Unrealized</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investments in</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Issuer</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Rate</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>party</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Expiration (000)</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Depreciation</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Securities</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Nordstrom, Inc. 5.20%</FONT>&nbsp;</TD>
     <TD align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Deutsche</FONT>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>June</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Bank AG</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2014</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$4,000</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ (675,809)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Balance, as of October 31, 2008</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 268,850</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=right><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149;</FONT>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fair Value Measurements &#151; Various inputs are used in determining the fair value of</FONT>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Accrued discounts/premiums</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=3 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>investments, which are as follows:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Realized gain (loss)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1 &#151; price quotations in active markets/exchanges for identical assets</FONT>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Change in unrealized appreciation/depreciation</FONT><SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2</FONT></SUP>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>(28,300)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>and liabiltiies</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net purchases (sales)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Net transfers in/out of Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>&#151;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Balance, as of October 31, 2009</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 240,550</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=4 align=left>&nbsp;<SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>2 </FONT></SUP><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Included in the related net change in unrealized appreciation/depreciation in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>the Statements of Operations.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=5 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=2 face=Frutiger-Roman,Arial,Helvetica,sans-serif>&#149; </FONT><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>the Fund&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=7 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=8 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>The following tables summarize the inputs used as of October 31, 2009 in</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=6 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>determining the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Investments in</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Valuation Inputs</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left>&nbsp; &nbsp;<B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Securities</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Assets</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Long-Term Investments:</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Common Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$53,634,533</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Investment Companies</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>1,549,500</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>113,368,707</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp; &nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>58,941,586</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Short-Term Securities</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>267,832,781</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 1</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>495,327,107</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>32,224,753</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Capital Trusts</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>232,306,446</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Preferred Stocks</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>32,491,302</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Trust Preferreds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>30,463,458</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Total Level 2</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>327,485,959</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Level 3</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=left>&nbsp;<FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>Corporate Bonds</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>240,550</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left><B><FONT size=1 face=FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif>Total</FONT></B>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>$ 823,053,616</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=4 align=center><FONT size=1 face=FranklinGothic-BookCnd,Arial,Helvetica,sans-serif>See Notes to Financial Statements.</FONT>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>24</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD colSpan=2 align=right><FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>ANNUAL REPORT</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face=FranklinGothic-Book,Arial,Helvetica,sans-serif>OCTOBER 31, 2009</FONT>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD></TR></TABLE><BR>
<HR align=center SIZE=2 width="100%" noShade>
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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=7%></TD>
     <TD width=11%></TD>
     <TD width=32%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">October 31, 2009</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Enhanced Capital and Income Fund, Inc. (CII)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aerospace &amp; Defense &#151; 5.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Honeywell International, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337,600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,116,464</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deere &amp; Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">207,286</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,441,877</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Northrop Grumman Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">192,800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,665,064</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 5.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Raytheon Co.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">226,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,233,280</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Time Warner, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">538,272</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,212,753</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,014,808</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Viacom, Inc. Class B (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">418,424</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,544,318</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 5.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Walt Disney Co.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">189,947</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,198,849</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Bank of New York Mellon Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">483,198</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,882,059</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,955,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Invesco Ltd.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">584,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,357,945</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Morgan Stanley</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">353,613</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,358,050</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nucor Corp.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">218,800</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,719,180</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,598,054</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-Utilities &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dominion Resources, Inc.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">256,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,744,085</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E.I. du Pont de Nemours &amp; Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">353,100</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,235,642</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 8.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Banks &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Anadarko Petroleum Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84,117</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,125,249</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wells Fargo &amp; Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">316,600</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,712,832</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chevron Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">256,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,624,856</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Communications Equipment &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Exxon Mobil Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">247,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,709,657</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nokia Oyj &#151; ADR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">503,900</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,354,179</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peabody Energy Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">199,100</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,882,369</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Computers &amp; Peripherals &#151; 4.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,342,131</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hewlett-Packard Co.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">286,092</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,577,926</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 10.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International Business Machines Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">117,353</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,153,945</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bristol-Myers Squibb Co.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">859,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,730,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,731,871</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Eli Lilly &amp; Co.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">263,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,961,635</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Johnson &amp; Johnson</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">143,454</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,470,959</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 3.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pfizer, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">681,599</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,607,622</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JPMorgan Chase &amp; Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">501,939</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,965,992</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schering-Plough Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">676,900</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,088,580</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 6.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">66,859,356</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AT&amp;T Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">459,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,792,798</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Qwest Communications International Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,573,701</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,829,587</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Semiconductors &amp; Semiconductor</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verizon Communications, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">494,300</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,626,337</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Equipment &#151; 10.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Analog Devices, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,817,563</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39,248,722</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intel Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">501,078</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,575,601</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electric Utilities &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LSI Corp. (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,895,920</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,947,110</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FPL Group, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">152,044</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,465,360</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maxim Integrated Products, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">655,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,927,185</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Southern Co.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,029</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,141,495</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Micron Technology, Inc. (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,233,100</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,372,749</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,606,855</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,640,208</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Software &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Emerson Electric Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">143,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,398,250</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Microsoft Corp.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">215,414</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,973,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 2.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Halliburton Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">441,089</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,884,210</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Home Depot, Inc.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">242,200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,076,798</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Walgreen Co.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">180,400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,824,532</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;664,851,097) &#151; 97.7%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">604,104,432</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 7.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Mills, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">209,371</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,801,736</FONT>&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kraft Foods, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">594,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,352,384</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unilever NV &#151; ADR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">481,632</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,877,612</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,031,732</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Money Market Funds &#151; 4.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Covidien Plc</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">193,800</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,162,856</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Institutional Class, 0.18% (b)(c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,567,455</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,567,455</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Products &#151; 3.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clorox Co.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,557</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,231,411</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kimberly-Clark Corp.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">287,700</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,595,732</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Time Deposits &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,827,143</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brown Brothers Harriman &amp; Co., 0.03%, 11/02/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 217</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">217,283</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Industrial Conglomerates &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tyco International Ltd.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">230,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,733,275</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;24,784,738) &#151; 4.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,784,738</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insurance &#151; 7.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments Before Outstanding Options Written</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ACE Ltd.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">185,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,527,280</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;689,635,835*) &#151; 101.7%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">628,889,170</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MetLife, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">257,825</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,773,785</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prudential Financial, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">118,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,350,709</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Travelers Cos., Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489,430</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,368,720</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48,020,494</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">25</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=1%></TD>
     <TD width=29%></TD>
     <TD width=7%></TD>
     <TD width=3%></TD>
     <TD width=8%></TD>
     <TD width=33%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Enhanced Capital and Income Fund, Inc. (CII)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Options Written</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Options Written</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Exchange-Traded Call Options Written</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Exchange-Traded Call Options Written (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ACE Ltd.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Raytheon Co.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 55</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (2,000)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 46</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (72,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 55</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(39,875)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 48</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">395</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(25,675)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AT&amp;T Inc., expiring 1/16/10 at USD 27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,500)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schering-Plough Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Anadarko Petroleum Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(109,250)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">425</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(148,750)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,425</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(32,063)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 70</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,000)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Time Warner, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Analog Devices, Inc., expiring 12/19/09 at USD 30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,750)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,700</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(209,250)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Bank of New York Mellon Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 1/16/10 at USD 33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(75,000)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Travelers Cos., Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">190</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,700)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 50</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(137,500)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bristol-Myers Squibb Co.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 50</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">465</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(95,325)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">430</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,375)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 55</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,250)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,470</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(75,335)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tyco International Ltd., expiring 12/19/09 at USD 36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">820</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(45,100)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clorox Co., expiring 1/16/10 at USD 60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">410</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(79,950)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unilever NV &#151; ADR, expiring 12/19/09 at USD 30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,700</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(289,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Covidien Plc, expiring 11/21/09 at USD 42.50</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,750)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verizon Communications, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deere &amp; Co., expiring 12/19/09 at USD 49</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,550</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(251,875)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(126,250)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dominion Resources, Inc.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(95,624)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">630</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(15,750)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,750)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 1/16/10 at USD 35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,000)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Viacom, Inc. Class B:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Eli Lilly &amp; Co.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,060</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31,800)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">130</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,250)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,035</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(72,450)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(44,000)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Walgreen Co., expiring 12/19/09 at USD 41</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">630</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,474)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Emerson Electric Co.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Walt Disney Co., expiring 12/19/09 at USD 31</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 41</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,675)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Exchange-Traded Call Options Written</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,359,940)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 41</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">290</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,050)</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Over-the-Counter Call Options Written</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Exxon Mobil Corp., expiring 11/21/09 at USD 75</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,850</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(70,300)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AT&amp;T Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FPL Group, Inc., expiring 11/21/09 at USD 55</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">470</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,525)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/15/09 at USD 26.60, Broker UBS AG</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(73,008)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Mills, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/18/09 at USD 27, Broker Morgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 65</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">515</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(90,125)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley Capitial Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">270</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,589)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 65</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">815</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(207,825)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Analog Devices, Inc., expiring 11/30/09 at USD 28.39,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Halliburton Co., expiring 11/21/09 at USD 32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,400</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(74,400)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker Citibank NA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,650</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,042)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hewlett-Packard Co.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bristol-Myers Squibb Co., expiring 11/13/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 48</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">790</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(144,175)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at USD 23.20, Broker Credit Suisse International</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,825</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,209)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 50</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">285</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(28,500)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chevron Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 1/16/10 at USD 50</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">600</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(85,500)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/30/09 at USD 79.18, Broker UBS AG</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,170</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(134,217)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Home Depot, Inc., expiring 12/19/09 at USD 28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,815</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(43,560)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/23/09 at USD 79.45, Broker UBS AG</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(125,320)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Honeywell International, Inc.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Covidien Plc, expiring 11/13/09 at USD 42.39,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(45,000)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker Credit Suisse International</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">580</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(41,089)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,800)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dominion Resources, Inc., expiring 12/11/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intel Corp., expiring 12/19/09 at USD 21</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,750</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(63,250)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at USD 35.48, Broker UBS AG</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,723)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International Business Machines Corp.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E.I. du Pont de Nemours &amp; Co., expiring 12/23/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 125</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">645</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(153,188)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at USD 34.87, Broker UBS AG</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,655</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(148,622)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Invesco Ltd., expiring 12/19/09 at USD 25</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">280</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,700)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FPL Group, Inc., expiring 11/17/09 at USD 55.96,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JPMorgan Chase &amp; Co., expiring 12/19/09 at USD 48</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(125,000)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker Credit Suisse International</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(438)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kimberly-Clark Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Mills, Inc., expiring 11/20/09 at USD 65.50,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">710</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(136,675)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker UBS AG</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">240</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(30,762)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/24/09 at USD 59</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">730</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(182,418)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Honeywell International, Inc., expiring 11/20/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 1/16/10 at USD 65</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,000)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at USD 38.50, Broker Credit Suisse International</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">640</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,045)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kraft Foods, Inc., expiring 12/19/09 at USD 28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,485</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(111,375)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Invesco Ltd., expiring 1/06/10 at USD 22.68,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maxim Integrated Products, Inc., expiring 11/21/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker Morgan Stanley Capital Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,470</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(132,869)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at USD 20</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,000)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Johnson &amp; Johnson:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MetLife, Inc., expiring 11/21/09 at USD 39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(24,750)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/15/09 at USD 60.96, Broker Morgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Microsoft Corp., expiring 12/19/09 at USD 27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">535</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(78,378)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley Capital Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">245</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,574)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Micron Technology, Inc., expiring 12/19/09 at USD 9</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,700</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,750)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/23/09 at USD 61.98, Broker Credit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Morgan Stanley, expiring 12/19/09 at USD 35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,240</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(127,100)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Suisse International</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">585</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(25,053)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nokia Oyj &#151; ADR:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 1/04/10 at USD 62, Broker Bank of America</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">245</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(15,384)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,625)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kraft Foods, Inc., expiring 12/07/09 at USD 26.85,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,500)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker Goldman Sachs Bank USA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,770</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(193,797)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nucor Corp., expiring 11/21/09 at USD 48</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,500)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peabody Energy Corp., expiring 11/21/09 at USD 42</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">700</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(70,000)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pfizer, Inc., expiring 12/19/09 at USD 18</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,110</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(153,300)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prudential Financial, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/21/09 at USD 55</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">355</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,875)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/19/09 at USD 55</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,500)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">26</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL
REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
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     <TD width=32%></TD>
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<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Enhanced Capital and Income Fund, Inc. (CII)</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Options Written</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Over-the-Counter Call Options Written (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fair Value Measurements &#151; Various inputs are used in determining the fair value of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LSI Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments, which are as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/13/09 at USD 5.63, Broker Morgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical assets</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley Capital Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (7,826)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/23/09 at USD 5.93, Broker Morgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley Capital Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(94,118)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 1/08/10 at USD 5.56, Broker Morgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for similar assets or liabilities in markets that are active, quoted prices for identi-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley Capital Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(49,728)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cal or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maxim Integrated Products, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/23/09 at USD 19.06, Broker Morgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley Capital Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,292</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,127)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 1/08/10 at USD 19.25, Broker Morgan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanley Capital Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(41,582)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Microsoft Corp., expiring 11/06/09 at USD 25,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker Deutshe Bank AG</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,080</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(294,840)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Northrop Grumman Corp., expiring 12/23/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at USD 51.94, Broker Citibank NA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,445</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(166,533)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Qwest Communications International Inc.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 1/06/10 at USD 3.66, Broker Credit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Suisse International</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(217,713)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following tables summarize the inputs used as of October 31, 2009 in deter-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Southern Co., expiring 12/23/09 at USD 32.76,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mining the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker Citibank NA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,950</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(56,560)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Walt Disney Co., expiring 11/09/09 at USD 28.50,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Broker Morgan Stanley Capital Services, Inc.</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">640</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,400)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wells Fargo &amp; Co.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 11/20/09 at USD 30.75, Broker Deutsche</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank AG</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,390</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31,570)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;604,104,432</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expiring 12/23/09 at USD 31.50, Broker Credit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,567,455</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Suisse International</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,468)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 1</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">628,671,887</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Over-the-Counter Call Options Written</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,017,206)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">217,283</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Options Written</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Premiums Received &#151; &#36;9,193,459) &#151; (1.0)%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,377,146)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments, Net of Outstanding Options Written &#151; 100.7%</FONT></B>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">622,512,024</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;628,889,170</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities in Excess of Other Assets &#151; (0.7)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,050,310)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each industry.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;618,461,714</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of October 31,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 715,152,338</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (4,359,940)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,130,287</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,017,206)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(92,393,455)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (86,263,168)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (6,377,146)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Non-income producing security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are options, which are shown at market value.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Institutional Class</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;24,567,455</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,743</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Series, LLC</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash Sweep Series</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(2,450,990)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;117,920</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp;<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Fund compliance purposes, the Fund&#146;s industry classifications refer to any
one</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine industry</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">27</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
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     <TD width=3%></TD>
     <TD width=7%></TD>
     <TD width=32%></TD>
     <TD width=2%></TD>
     <TD width=5%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">October 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">British Vita Holding Co. (a)(b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">166</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 977</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Compagnie Generale de Geophysique-Veritas:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.50%, 5/15/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">70</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,475</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sirva (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">554</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,540</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.75%, 5/15/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Construction &amp; Engineering &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">118,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USI United Subcontractors (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,639</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">99,305</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Duane Reade, Inc., 11.75%, 8/01/15 (a)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">240</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Euramax International (b)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,135</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,203</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smithfield Foods, Inc., 10.00%, 7/15/14 (a)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">700</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">735,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd. (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,855</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90,850</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd. (a)(b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62,685</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,419</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC, 10.88%, 11/15/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">635</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">661,987</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">193,269</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Common Stocks &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">311,294</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DaVita, Inc., 6.63%, 3/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,070</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,053,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tenet Healthcare Corp. (a):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.00%, 5/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">95</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100,462</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 5/01/18</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,587</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,192,999</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Air Freight &amp; Logistics &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Park-Ohio Industries, Inc., 8.38%, 11/15/14</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">125</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98,125</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Real Estate Partners LP, 7.13%, 2/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">137,550</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Greektown Holdings, LLC, 10.75%, 12/01/13 (a)(b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">122</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi International Holdings Unsecured,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">161,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.00%, 10/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,992</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Goodyear Tire &amp; Rubber Co., 5.01%, 12/01/09 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60,000</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beazer Homes USA, Inc., 12.00%, 10/15/17 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,575,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lear Corp., 8.75%, 12/01/16 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,400</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berkline/BenchCraft, LLC, 4.50%, 11/03/12 (b)(d)(e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">118,392</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,575,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CPG International I, Inc., 10.50%, 7/01/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76,500</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems, Inc., 4.88%, 1/15/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">763</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">686,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E*Trade Financial Corp. (a):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AES Ironwood LLC, 8.86%, 11/30/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">82</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,071</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.50%, 11/30/17 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">138</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">153,180</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Calpine Construction Finance Co. LP,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.34%, 8/31/19 (f)(g)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">439</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">629,416</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.00%, 6/01/16 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,580</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,618,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Co., LLC, 10.63%, 1/15/16 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,501</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">915,610</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NRG Energy, Inc., 7.25%, 2/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,183,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (a)(e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">645</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">145,226</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,880,271</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco, LLC,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.50%, 1/15/18 (a)(e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">445</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100,213</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">161,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,943,645</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synventive Molding Solutions Sub-Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.00%, 1/14/11 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">986</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">246,504</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Pacific Corp., 9.00%, 2/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">125</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">116,250</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">408,204</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ames True Temper, Inc., 4.28%, 1/15/12 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,100</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">968,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,084,250</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Affinion Group, Inc., 10.13%, 10/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Banks &#151; 4.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CSC Holdings, Inc., 8.50%, 4/15/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">580,937</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SNS Bank NV Series EMTN, 2.88%, 1/30/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,500</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,711,922</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications Holdings II, LLC (b)(d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.25%, 9/15/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">260</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">314,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DI Finance Series B, 9.50%, 2/15/13</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">307</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">313,140</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 10.25%, 9/15/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,225</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Geo Group, Inc., 7.75%, 10/15/17 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">675</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">685,125</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications Operating, LLC,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 4/30/12 (a)(b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">213,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">998,265</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EchoStar DBS Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 10/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">158</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">158,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berry Plastics Corp., 4.17%, 9/15/14 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">236,250</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.13%, 2/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">230</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">230,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Impress Holdings BV, 3.41%, 9/15/13 (a)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">142,687</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Local Insight Regatta Holdings, Inc., 11.00%, 12/01/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">770</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">377,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">378,937</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nielsen Finance LLC, 10.00%, 8/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">412,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rainbow National Services LLC, 8.75%, 9/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">761,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FCE Bank Plc, 7.13%, 1/16/12</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">282,556</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,152,712</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp., 8.88%, 6/30/17 (a)</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">700</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">693,000</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foundation PA Coal Co., 7.25%, 8/01/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506,894</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Qwest Corp., 8.38%, 5/01/16 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,840</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,899,800</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 5.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Telefonica Emisiones SAU, 5.43%, 2/03/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,164,192</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gazprom OAO, 9.63%, 3/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,530</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,770,628</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,756,992</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Repsol International Finance BV, 6.50%, 3/27/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,444,048</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SandRidge Energy, Inc., 3.91%, 4/01/14 (c)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,239,308</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Whiting Petroleum Corp., 7.25%, 5/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,754,359</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=3%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=32%></TD>
     <TD width=3%></TD>
     <TD width=6%></TD>
     <TD width=7%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT>&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 2.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beverages (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(e)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">482 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">275,858</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Le-Nature&#146;s, Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NewPage Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.50%, 3/01/11 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">390,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.53%, 5/01/12 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">960,000</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Orangina SA:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.38%, 12/31/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,470</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,456,325</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B2, 2.61%, 12/31/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">559</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">801,916</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verso Paper Holdings LLC Series B, 4.03%, 8/01/14 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,215</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">795,825</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan C2, 3.61%, 12/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">534</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">765,047</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,488,008</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,443,353</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Building Products &#151; 1.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Angiotech Pharmaceuticals, Inc., 4.11%, 12/01/13 (c)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,452,500</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Building Materials Corp. of America, Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Real Estate Investment Trusts (REITs) &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advance, 3.00%, 2/22/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,679</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,460,208</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rouse Co. LP, 5.38%, 11/26/13 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,835</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,254,800</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Custom Building Products, Inc., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.75%, 4/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,421,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Goodman Global Holdings Term Loan B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Nutrition Centers, Inc., 5.18%, 3/15/14 (c)(e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">446,250</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 2/13/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">900,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lazy Days&#146; R.V. Center, Inc., 11.75%, 5/15/12 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,750</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Momentive Performance Materials (Blitz 06-103</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450,000</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GMBH), Tranche B-1 Term Loan, 2.50%, 12/04/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,218</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,007,952</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Textiles, Apparel &amp; Luxury Goods &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">United Subcontractors, Inc., First Lien Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Levi Strauss &amp; Co., 8.63%, 4/01/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,300</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,894,012</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.79%, 6/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">179</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">152,293</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,942,378</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Imperial Tobacco Finance Plc, 4.38%, 11/22/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,238,020</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reynolds American, Inc., 7.63%, 6/01/16</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,154,312</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Co., LLC, Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,392,332</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00% &#150; 5.06%, 12/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">458</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">309,239</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nuveen Investments, Inc., First Lien Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.28%, 11/13/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,174</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,009,334</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cricket Communications, Inc., 7.75%, 5/15/16 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,992,500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">iPCS, Inc., 2.41%, 5/01/13 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,155</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,010,625</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,318,573</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,003,125</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 8.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ashland Inc., Term B Borrowing, 7.65%, 5/13/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,071</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,085,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Corporate Bonds &#151; 25.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,475,012</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brenntag AG, Second Lien Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.25%, 7/17/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">937,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brenntag Holding GmbH &amp; Co. KG:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acquisition Facility 1, 2.25% &#150; 2.99%, 1/20/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">384</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">363,650</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acquisition Facility 2, 3.21%, 1/20/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">616,722</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aerospace &amp; Defense &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.25%, 1/20/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,572</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,489,371</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Avio SpA, Dollar Mezzanine Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B6A and B6B, 3.02%, 1/20/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">689,643</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.24%, 12/13/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,062</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">806,784</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cognis GmbH:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawker Beechcraft Acquisition Co. LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility A, 2.77%, 11/17/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">803</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,068,996</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Linked Deposit, 0.18%, 3/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">163</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127,717</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B (French), 2.77%, 11/16/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">197</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.24% &#150; 2.28%, 3/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,158,412</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ElectricInvest Holding Co. Ltd. (Viridian Group Plc),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">IAP Worldwide Services, Inc., Term Loan (First-Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Junior Term Facility:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.25%, 12/30/12 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">232</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">193,722</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.93%, 12/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,787</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,025,325</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.01%, 12/21/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,274,779</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,286,635</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Huish Detergents Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Airlines &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 4.50%, 10/26/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">710,625</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Airways Group, Inc., Loan, 2.78%, 3/21/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,460</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">965,425</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 2.00%, 4/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,725</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,650,055</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 2.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ineos US Finance LLC, Term A4 Facility,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allison Transmission, Inc., Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 12/14/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,236</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,091,535</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.00% &#150; 3.04%, 8/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,778</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,166,397</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Matrix Acquisition Corp. (MacDermid, Inc.), Tranche C</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dana Holding Corp., Term Advance, 7.25%, 1/31/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,874</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,532,390</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.64%, 12/15/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,616</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,839,021</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dayco Products LLC &#151; (Mark IV Industries, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nalco Co., Term Loan, 6.50%, 5/13/16</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,891</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,918,858</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Replacement Term B Loan, 8.75%, 6/21/11 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">853</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">382,583</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PQ Corp. (fka Niagara Acquisition, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Lien Term Loan, 8.50%, 5/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100,806</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.75%, 7/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,839,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Term Loan, 8.50%, 6/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,081</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 3.50% &#150; 3.54%, 7/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,716</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,411,475</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GPX International Tire Corp. (b)(d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rockwood Specialties Group, Inc., Tranche H Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amendment Fee, 12.00%, 4/11/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,454</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,241,848</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 10.25%, 3/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">640</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">192,052</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solutia Inc., Loan, 7.25%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,472</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,492,343</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,387,763</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,008,356</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Automobiles &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies &#151; 3.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Motor Co., Term Loan, 3.25% &#150; 3.29%, 12/15/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,690</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,502,202</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aramark Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility Letter of Credit, 0.29%, 1/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">155</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">141,829</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beverages &#151; 1.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Term Loan, 2.12% &#150; 2.16%, 1/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,359</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,161,562</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Culligan International Co., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Casella Waste Systems, Inc., Term B Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.19%, 4/24/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">533,473</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 4/08/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,097</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,102,736</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inbev NV Bridge Loan, 1.43%, 7/15/11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">986,250</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inbev NV/SA, Bridge Loan, 1.72%, 7/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">966,667</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">29</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commercial Services &amp; Supplies (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Telecommunication Services &#151; 3.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EnviroSolutions Real Property Holdings, Inc., Initial</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCM Ireland Holdings Ltd. (Eircom):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 11.00%, 7/07/12 (e)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,030 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,502,171</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B, 2.30%, 8/14/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641,441</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">John Maneely Co., Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C, 2.55%, 8/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641,441</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.50% &#150; 3.53%, 12/09/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,380</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,259,076</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cavtel Holdings, LLC, Term Loan, 10.50%, 12/31/12</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,162</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">865,414</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SIRVA Worldwide, Inc., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hawaiian Telcom Communications, Inc., Tranche C</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.00%, 5/12/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">133</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,339</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 4.75%, 5/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,223</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">868,143</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synagro Technologies, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Integra Telecom Holdings, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.24%, 4/02/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,971</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,584,205</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 8/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,870</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,829,318</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">West Corp. Incremental Term Loan B-3,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nordic Telephone Co. Holdings APS:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.25%, 11/08/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,995</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,998,661</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2 Swiss, 1.93%, 11/29/13</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">885</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,238,990</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,763,579</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C2 Swiss, 2.56%, 11/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,058</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,480,351</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PAETEC Holding Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Computers &amp; Peripherals &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Incremental Term Loan, 2.74%, 2/28/13</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">132</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">124,349</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intergraph Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Replacement Term Loan, 2.74%, 2/28/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">310</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">292,941</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan (First Lien), 2.37%, 5/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">333,795</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wind Telecomunicazioni SpA:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second-Lien Term Loan, 6.24% &#150; 6.37%, 11/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">718,125</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A1 Term Loan Facility, 2.90% &#150; 2.93%, 9/22/12</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">848</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,180,221</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,051,920</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B1 Term Loan Facility, 3.69%, 9/22/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,404,009</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Construction &amp; Engineering &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C1 Term Loan Facility, 4.68%, 9/22/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,404,009</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Airport Development and Investment Ltd. (BAA) Facility</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,970,627</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 4.56%, 4/07/11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">566</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">843,498</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electric Utilities &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brand Energy &amp; Infrastructure Services, Inc. (FR Brand</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Astoria Generating Co. Acquisitions, LLC, Term B Facility,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acquisition Corp.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.04% &#150; 2.05%, 2/23/13</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">378</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">362,655</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.31% &#150; 6.44%, 2/07/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">791,250</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TPF Generation Holdings, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit Deposit (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.31%, 2/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449,375</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.18%, 12/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">151</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">143,016</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,084,123</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Revolving Deposit, 0.19%, 12/15/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,832</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Containers &amp; Packaging &#151; 1.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 2.24%, 12/15/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">409</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">388,847</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Atlantis Plastic Films, Inc., Term Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.25%, 3/22/12 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electrical Equipment &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Graham Packaging Co., L.P.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Electrical Components International Holdings Co. (ECI),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B Term Loan, 2.50% &#150; 2.56%, 10/07/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">232</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">225,705</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (Second Lien), 11.50%, 5/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C Term Loan, 6.75%, 4/05/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">828</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">826,876</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Generac Acquisition Corp., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">OI European Group BV, Tranche D Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.78%, 11/10/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,464</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,315,114</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.93%, 6/14/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,915</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,672,599</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit Kappa Acquisitions (JSG):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,340,114</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C1 Term Loan Facility, 4.05% &#150; 4.46%, 12/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">724</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,017,226</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Electronic Equipment, Instruments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B1, 3.80% &#150; 4.73%, 12/02/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">724</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,017,446</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">&amp; Components &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Canada, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Flextronics International Ltd.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche C, 2.50%, 11/01/11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,153</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A Closing Date Loan, 2.49% &#150; 2.54%, 10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,666</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,459,646</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche C-1 Term Loan, 2.50%, 11/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,605</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delay Draw Term Loan, 2.53%, 10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">766</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">706,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Matinvest 2 SAS (Deutsche Connector), Second Lien,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deposit Funded Facility, 4.50%, 11/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,754</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.97%, 12/22/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">235,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B, 2.50%, 11/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,376</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Safenet, Inc., Loan (Second Lien), 6.25%, 4/12/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">426,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Term Loan Debtor in Possession,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tinnerman Palnut Engineered Products, LLC, Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.00%, 1/28/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">145</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">145,108</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 13.00%, 11/01/11 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,407</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,068</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container, Revolving Credit:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,851,759</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.75% &#150; 4.50%, 11/01/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,913</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.75% &#150; 5.00%, 11/01/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,540</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Energy Equipment &amp; Services &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dresser, Inc., Term Loan (Second Lien), 6.00%, 5/04/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,348,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,041,301</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MEG Energy Corp., Initial Term Loan, 2.29%, 4/03/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">483</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">454,756</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Distributors &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trinidad USA Partnership LLLP, Term Facility,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Keystone Automotive Operations, Inc., Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.74%, 5/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,019</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">876,748</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.75% &#150; 5.75%, 1/12/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,026</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">608,109</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,679,629</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Consumer Services &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing &#151; 2.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coinmach Laundry Corp, Delay Draw Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AB Acquisitions UK Topco 2 Ltd. (fka Alliance Boots),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.25% &#150; 3.43%, 11/14/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">497</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">424,528</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 3.52%, 7/09/15</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,596,399</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coinmach Service Corp., Term Loan B, 3.43%, 11/14/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,539</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,094,394</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Birds Eye Iglo Group Ltd. (Liberator Midco Ltd.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education Management Corp, Term Loan C,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mezzanine Credit Facility, 8.51%, 11/03/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">411</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">626,759</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.06%, 6/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,197</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,118,950</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DSW Holdings, Inc., Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Laureate Education New Incremental Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.29%, 3/02/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">861,667</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 12/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,234,063</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">McJunkin Corp., Term Loan, 3.49%, 1/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">497</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">481,060</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,871,935</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pierre Foods Term Loan B, 8.50%, 9/23/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">817</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">821,085</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/10/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,030,417</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professional Service Industries, Inc., Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(First Lien), 3.00%, 10/31/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">620</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">310,223</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">30</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL
REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=3%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=32%></TD>
     <TD width=3%></TD>
     <TD width=6%></TD>
     <TD width=7%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT>&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food &amp; Staples Retailing (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Roundy&#146;s Supermarkets, Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penn National Gaming, Inc., Term Loan B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.01% &#150; 3.04%, 11/03/11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">501 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">492,229</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.99% &#150; 2.21%, 10/03/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,497 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,404,745</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">WM. Bolthouse Farms, Inc., Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">QCE, LLC (Quiznos), Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.56%, 12/16/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">843</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">819,272</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.56%, 5/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">997</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">797,107</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,728,888</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,841,788</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Food Products &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 1.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dole Food Co., Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Residential Services LLC, Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit-Linked Deposit, 0.28%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">192</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">193,556</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 10.00%, 4/17/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,051</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,927,183</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">335</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">338,055</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berkline/Benchcraft, LLC., Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FSB Holdings, Inc. (Fresh Start Bakeries), Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.58%, 11/03/11 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,373</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 6.00%, 3/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">415,000</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jarden Corp., Term Loan B3, 2.78%, 1/24/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">952</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">930,272</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Solvest, Ltd. (Dole), Tranche C Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Simmons Bedding Co., Tranche D Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.00%, 4/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,205</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,214,151</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.50%, 12/19/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,477,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wm. Wrigley Jr. Co., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Candle Co., Inc., Term Loan, 2.25%, 2/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,047</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">974,582</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 9/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,924</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,956,946</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,314,910</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,117,708</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Products &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Equipment &amp; Supplies &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">VI-JON, Inc. (VJCS Acquisition, Inc.), Tranche B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bausch &amp; Lomb Incorporated:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.25%, 4/24/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">674</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">630,379</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 3.50% &#150; 3.53%, 4/24/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">93</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">88,814</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IT Services &#151; 4.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Parent Term Loan, 3.53%, 4/24/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">384</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365,729</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amadeus IT Group SA/Amadeus Verwaltungs GmbH:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biomet, Inc., Euro Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B3 Facility, 2.44%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">615</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">833,122</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.39% &#150; 3.71%, 3/25/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,521</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,523,547</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B4 Facility, 2.44%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">663,217</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DJO Finance LLC (ReAble Therapeutics Fin LLC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term C3 Facility, 2.94%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">615</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">833,122</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 3.24% &#150; 3.28%, 5/20/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,485</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,426,110</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term C4 Facility, 2.94%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">489</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">663,217</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hologic, Inc., Tranche B Term Loan, 3.50%, 3/31/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">270</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">263,940</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Audio Visual Services Group, Inc., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,668,140</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.79%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,059</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">105,867</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 4.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ceridian Corp, US Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCS Medical, Inc. (Chronic Care):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.24% &#150; 3.28%, 11/09/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,977</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,753,567</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan Debtor in Possession, 11.00%, 11/16/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,309</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Data Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 4.35%, 9/30/12 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">675</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">328,500</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-1 Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CCS Medical Return of Capital, 0.00%, 9/30/11 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">475</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231,167</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.99% &#150; 3.04%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,454</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,106,768</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CHS/Community Health Systems, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 2.49%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">213,335</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.03% &#150; 3.04%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,590</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,361,812</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funded Term Loan, 2.49% &#150; 2.62%, 7/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,491</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,181,777</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fresenius SE:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.03% &#150; 3.04%, 9/24/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">975</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">834,104</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B1 Term Loan, 6.75%, 9/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">968</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">973,779</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RedPrairie Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B2 Term Loan, 6.75%, 9/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">521</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">524,586</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.97%, 1/20/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,081,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HCA Inc., Tranche A-1 Term Loan, 1.78%, 11/17/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,084</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,869,645</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 3.44% &#150; 5.25%, 7/20/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">861</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">826,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HealthSouth Corp., Tranche 1 Term Loan-Assignment</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SunGard Data Systems Inc (Solar Capital Corp.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.54% &#150; 2.55%, 3/10/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">798</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">757,573</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Incremental Term Loan, 6.75%, 2/28/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,694</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,706,074</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HealthSouth Corp., Tranche 2 Term Loan-Assignment</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,768,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.04% &#150; 4.05%, 3/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">657</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">632,965</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent Power Producers &amp; Energy Traders &#151; 2.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Surgical Care Affiliates, LLC, Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dynegy Holdings Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.28%, 12/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">392</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">357,114</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Letter of Credit Facility Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vanguard Health Holding Co. II, LLC (Vanguard</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.00%, 4/02/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,110</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,063,811</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health System, Inc.), Replacement Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B Term Loan, 4.00%, 4/02/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">85,856</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.49%, 9/23/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,637</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,594,878</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Texas Competitive Electric Holdings Co., LLC (TXU):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,695,628</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-1 Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Hotels, Restaurants &amp; Leisure &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.74% &#150; 3.78%, 10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,477</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,918,853</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLB Worldwide Holdings, Inc. (Wembley, Inc.) (b)(d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-2 Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Priority Term Loan, 4.75%, 7/18/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,418</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,426,744</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.74% &#150; 3.78%, 10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,261</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,520,589</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Priority Term Loan, 7.06%, 7/18/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67,500</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Tranche B-3 Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Golden Nugget, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.74% &#150; 3.78%, 10/10/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,485</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,903,001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additional Term Advance (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,492,110</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.25% &#150; 2.29%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">271</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">185,651</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insurance &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second Lien Term Loan, 3.50%, 12/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200,000</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alliant Holdings I, Inc. Term Loan, 3.28%, 8/21/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">980</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">908,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Advance (First Lien), 2.25%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">476</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">326,114</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Conseco, Inc, Term Loan, 6.50%, 10/10/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">728</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">651,745</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Green Valley Ranch Gaming, LLC, Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.55%, 8/16/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">367,500</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,560,695</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Co., Inc., Term B-3 Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Internet &amp; Catalog Retail &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.28%, 1/28/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">726</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">576,991</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FTD Group, Inc., Base Prime, 6.75%, 8/26/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">688</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">686,239</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harrah&#146;s Operating Term B-4 Loan, 9.50%, 10/31/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,462,709</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Oriental Trading Co., Inc., Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">OSI Restaurant Partners, LLC, Pre-Funded RC Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.24%, 1/31/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">110,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.12% &#150; 2.56%, 6/14/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,727</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">796,239</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">31</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=13%></TD>
     <TD width=2%></TD>
     <TD width=7%></TD>
     <TD width=8%></TD>
     <TD width=32%></TD>
     <TD width=3%></TD>
     <TD width=5%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Leisure Equipment &amp; Products &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24 Hour Fitness Worldwide, Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insight Midwest Holdings, LLC, B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.75% &#150; 2.79%, 6/08/12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">965 &#36;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">894,234</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.29%, 4/07/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">700</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 663,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Life Sciences Tools &amp; Services &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kabel Deutschland GMBH, A Facility-Assignment,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Life Technologies Corp., Term B Facility,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.18%, 6/01/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,605,645</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 11/23/15</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,378</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,385,424</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lamar Media Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B Incremental Loan, 5.50%, 9/28/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,875</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,851,569</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 1.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 5.50%, 9/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">635,871</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accuride Term Loan, 6.00%, 1/31/12</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,139,579</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Blount, Inc., Term Loan B, 2.00% &#150; 3.25%, 8/09/10</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">533</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506,600</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B, 3.53%, 6/28/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">323,548</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LN Acquisition Corp. (Lincoln Industrial):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C, 3.78%, 6/30/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">674</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">647,096</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan (First Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Liberty Cablevision of Puerto Rico, Ltd., Initial Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.79%, 7/11/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">254</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">220,823</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility, 2.25%, 6/17/14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,466</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,238,981</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial U.S. Term Loan (First Lien), 2.79%, 7/11/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">659</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">573,043</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Local TV Finance, LLC, Term Loan, 2.25%, 5/07/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">739</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">590,317</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NACCO Materials Handling Group, Inc., Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCC Iowa LLC (Mediacom Broadband Group),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.24% &#150; 3.41%, 3/21/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">484</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">372,488</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche E Term Loan, 6.50%, 1/03/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">597</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">598,470</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Oshkosh Truck Corp., Term B Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MCNA Cable Holdings LLC (OneLink Communications),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.29% &#150; 6.33%, 12/06/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,115</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,108,175</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan, 7.23%, 3/01/13 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,933</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">773,361</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Standard Steel, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mediacom Illinois, LLC (fka Mediacom</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Draw Term Loan, 8.25%, 7/02/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,030</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Communications, LLC), Tranche D Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Term Loan, 9.00%, 7/02/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">368</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">312,724</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 3/31/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,251,563</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,296,462</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mediannuaire Holding (Pages Jaunes):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Marine &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B2, 3.03%, 1/11/15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">438</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">457,955</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi Acquisition Holding I B.V. (fka Dockwise):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan C, 3.53%, 1/11/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">905</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">947,420</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B1, 2.28%, 1/12/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">688</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">649,708</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan D, 5.03%, 1/11/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">448,853</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility B2, 2.28%, 1/12/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">470</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443,100</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metro-Goldwyn-Mayer Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C1, 3.16%, 1/11/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">577</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">544,590</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20.50%, 4/09/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,905</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,082,186</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility C2, 3.16%, 1/11/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">470</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443,100</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mission Broadcasting, Inc., Term B Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility D1, 4.78%, 1/11/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">513,500</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,099</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">923,069</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility D2, 4.78%, 1/11/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">790,000</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Multicultural Radio Broadcasting, Inc., Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.99%, 12/04/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">313</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">219,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,383,998</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NTL Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 25.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C Facility, 3.58%, 7/17/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,875</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,848,420</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acosta, Inc., 2006 Term Loan, 2.50%, 7/28/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,185</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,120,156</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B1, 2.89%, 9/03/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">434</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">684,184</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Affinion Group Holdings, Inc. Loan, 8.27%, 3/01/12 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,021</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">903,991</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B2, 2.89%, 9/03/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">508</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">799,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amsterdamse Beheer &#151; En Consultingmaatschappij BV</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NVT Networks LLC, Exit Term Loan, 13.00%, 10/01/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160,050</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Casema) Casema:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Newsday, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B1 Term Loan Facility, 2.93%, 11/02/14</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">625</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">873,332</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fixed Rate Term Loan, 10.50%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,570,001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C Term Loan Facility, 3.43%, 11/02/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">625</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">873,332</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Term Loan, 6.53%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,231,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Atlantic Broadband Finance, LLC, Tranche B-2-A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nexstar Broadcasting, Inc, Term B Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 2.54%, 9/01/11</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">68,033</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00% &#150; 6.25%, 10/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,039</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">976,204</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Atlantic Broadband Tranche B-2-B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Nielson Finance LLC, Dollar Term Loan:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.75%, 6/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,866</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,848,493</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class A, 2.24%, 8/09/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,178</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,093,676</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bresnan Communications, LLC, Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Class B, 3.99%, 5/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,292</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,145,880</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Second Lien), 4.75%, 3/29/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">235,625</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Penton Media, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catalina Marketing Corp., Initial Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Institutional Loan (Second Lien), 5.28%, 1/29/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.00%, 10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,345</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,276,398</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 2.53% &#150; 2.62%, 11/30/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,097</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">744,047</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cengage Learning Acquisitions, Inc. (Thomson Learning),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Cable Acquisition Co. Inc. (D/B/A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche 1 Incremental Term Loan, 7.50%, 7/03/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,411</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,151,017</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Choice TV), Term Loan (Second Lien), 7.75%, 2/15/12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">692</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">564,231</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cequel Communications, LLC, Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Quebecor Media, Facility B, 2.28%, 1/17/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">722</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">682,172</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.24% &#150; 4.25%, 11/05/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,619,926</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Springer:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications Operating, LLC, New Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B, 3.14%, 9/16/11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,247,398</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 3/06/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,299</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,177,279</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan C, 3.52%, 9/17/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,188</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,627,908</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Communications, Incremental Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sunshine Acquisition Ltd. (aka HIT Entertainment),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.25%, 3/25/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,996</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,021,893</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Facility, 2.73%, 3/20/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,998</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,735,807</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FoxCo Acquisition Sub, LLC, Term Loan, 7.50%, 7/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,391</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,166,610</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TWCC Holding Corp., Term Loan, 7.25%, 9/14/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,736</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,757,846</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HIT Entertainment, Inc., Term Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Telecommunications Management, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.98%, 2/26/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">532,500</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Multi-Draw Term Loan, 3.49%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">232</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">171,473</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">HMH Publishing Co. Ltd.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 3.49%, 6/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">919</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">680,153</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mezzanine, 17.50%, 11/14/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,063</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">292,405</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">UPC Financing Partnership, Facility U,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche A Term Loan, 5.28%, 6/12/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,648</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,281,948</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.44%, 12/31/17</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,767</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,085,895</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hanley-Wood, LLC (FSC Acquisition), Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">World Color USA Corp. (fka Quebecor World Inc.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.49% &#150; 2.53%, 3/08/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,212</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">922,069</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.00%, 7/23/12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,622</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,622,066</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hargray Acquisition Co./DPC Acquisition LLC/HCP</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yell Group Plc, Term Loan B1, 3.28%, 10/27/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,760,715</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Acquisition LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80,896,838</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 5.97%, 1/29/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">312,500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 2.72%, 6/27/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">368</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">343,708</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harland Clarke Holdings Corp. (fka Clarke</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Corp.), Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.74% &#150; 2.78%, 6/30/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,459</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,218,041</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=29%></TD>
     <TD width=4%></TD>
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     <TD width=8%></TD>
     <TD width=32%></TD>
     <TD width=2%></TD>
     <TD width=7%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Metals &amp; Mining &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Software &#151; 0.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Essar Steel Algoma Inc. (fka Algoma Steel Inc.),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bankruptcy Management Solutions, Inc.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan, 8.00%, 6/20/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,934 &#36;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,813,014</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan (Second Lien), 6.49%, 7/31/13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">485 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">97,909</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-Utilities &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan (First Lien), 4.25%, 7/31/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">945</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">567,149</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FirstLight Power Resources, Inc. (fka NE Energy, Inc.):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">665,058</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synthetic Letter of Credit, 0.16%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">159</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">145,457</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Specialty Retail &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Advance (Second Lien), 4.81%, 5/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">609,375</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term B Advance (First Lien), 2.81%, 11/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,230</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,128,922</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.50%, 10/21/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">477,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mach Gen, LLC Synthetic Letter of Credit Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Nutrition Centers, Inc., Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(First Lien), 0.03%, 2/22/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,696</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.50% &#150; 2.54%, 9/16/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">240,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,947,450</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Orchard Supply Hardware, Term Loan B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multiline Retail &#151; 1.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.70%, 12/21/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,276,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dollar General Corp.:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,994,645</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-1 Term Loan, 2.99% &#150; 3.03%, 7/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,247</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,190,066</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trading Companies &amp; Distributors &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tranche B-2 Term Loan, 2.99%, 7/07/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">499</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">473,685</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beacon Sales Acquisition, Inc., Term B Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hema BV Term Loan B (Euro), 5.43%, 1/01/17</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,800</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,914,585</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.24% &#150; 2.29%, 9/30/13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,188</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,110,373</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,578,336</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Wireless Telecommunication Services &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Oil, Gas &amp; Consumable Fuels &#151; 1.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Digicel International Finance Ltd., Tranche A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Big West Oil, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.81%, 3/30/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,938</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,855,193</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delayed Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">920</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">878,365</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MetroPCS Wireless, Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Advance Loan, 4.50%, 5/15/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">732</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">698,602</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.50% &#150; 2.75%, 11/03/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,605</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,505,191</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Coffeyville Resources, LLC Tranche D Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ntelos Inc., Term B Advance, 5.75%, 8/07/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,253,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.50%, 12/30/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,037</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,036,440</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,613,509</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Drummond Co., Inc., Term Advance, 1.49%, 2/14/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">950</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">921,500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Niska Gas Storage Canada ULC, Canadian Term Loan B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Floating Rate Loan Interests &#151; 95.7%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">298,940,865</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.00%, 5/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">428,733</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Niska Gas Storage US, LLC:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Term B Loan, 2.00%, 5/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,047</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wild Goose Acquisition Draw-US Term B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Foreign Government Obligations</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.00%, 5/12/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,514</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brazilian Government International Bond,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vulcan Energy Term Loan B, 5.50%, 9/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,760,938</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.25%, 6/17/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">475</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">585,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,800,139</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Colombia Government International Bond,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paper &amp; Forest Products &#151; 1.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.84%, 3/17/13 (c)(h)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,230,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgia-Pacific LLC, Term B Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mexican Bonos Series M, 9.00%, 12/22/11</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MXN 13,520</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,100,441</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.28% &#150; 2.46%, 12/22/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,263</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,136,698</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Republic of Venezuela, 1.28%, 4/20/11 (c)(h)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,440,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Verso Paper Finance Holdings LLC, Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">South Africa Government International Bond,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.73% &#150; 7.48%, 2/01/13 (e)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">360</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120,629</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.38%, 4/25/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,634,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Turkey Government International Bond,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,257,327</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 9/26/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,735</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,022,175</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Personal Products &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Uruguay Government International Bond,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Safety Razor Co., LLC, Loan (Second Lien),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.88%, 1/19/16</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">950</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,460,979</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.54%, 1/30/14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,525</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,212,375</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Foreign Government Obligations &#151; 4.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,472,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pharmaceuticals &#151; 2.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catalent Pharma Solutions, Inc. (fka Cardinal</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health 409, Inc.), Euro Term Loan, 2.68%, 4/15/14</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,444</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,164,780</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Beneficial</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warner Chilcott:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delay Draw Term Loan, 3.78%, 4/12/10</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">524</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">524,673</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Interests (i)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan A1, 5.50%, 10/14/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,390</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,391,134</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B1, 5.75%, 3/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">695</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">695,567</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auto Components &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Term Loan B2, 5.75%, 4/30/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,529</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,530,248</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi Debtor in Possession Hold Co. LLP Class B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Membership Interests</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">268</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,963,437</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,306,402</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Diversified Financial Services &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Professional Services &#151; 0.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">JG Wentorth LLC Preferred Equity Interests</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">515</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">434,273</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Booz Allen Hamilton Inc., Tranche B Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.50%, 7/31/15</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">992</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000,643</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health Care Providers &amp; Services &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Critical Care Systems International, Inc.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">947</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">190</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Real Estate Management &amp; Development &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Enclave, First Lien Term Loan, 6.14%, 3/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">248,072</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Household Durables &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgian Towers, Term Loan, 6.14%, 3/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">234,496</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berkline Benchcraft Equity LLC</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,155</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pivotal Promontory, LLC, Second Lien Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.00%, 8/31/11 (b)(d)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,500</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Vision LLC Holdings</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,441</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">328,381</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realogy Corp. Second Lien Term Loan,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Other Interests &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,726,281</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.50%, 10/15/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,282,291</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,802,359</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">33</FONT>&nbsp;</TD>
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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=right colspan=7>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Stocks</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
	<TD align=left colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Markets &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco, LLC, 16.75% (a)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 &#36;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,500</FONT>&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Convertible security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Preferred Securities &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,500</FONT>&nbsp;</TD>
	<TD align=right colspan=12 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(h) Restricted securities as to resale, representing 1.5% of net assets were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Acquisition</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issue</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cost</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Warrants (j)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Colombia Government</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International Bond,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Chemicals &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.84%, 3/17/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/15/06</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,277,303</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,230,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">British Vita Holding Co. (non expiring) (a)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">166</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Republic of Venezuela,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Machinery &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.28%, 4/20/11</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/26/04</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,860,186</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,440,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Synventive Molding Solutions (expires 1/15/13)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,137,489</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,670,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Media &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cumulus Media Warrants (expires 12/31/19)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,315</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,176</FONT>&nbsp;</TD>
	<TD align=right colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(i) Other interests represent beneficial interest in liquidation trusts and other reorgani-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Vision Holdings LLC (expires 9/30/14)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,447</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">zation entities and are non-income producing.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,400</FONT>&nbsp;</TD>
	<TD align=left colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) Warrants entitle the Fund to purchase a predetermined number of shares of com-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mon stock and are non-income producing. The purchase price and number of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Warrants &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,400</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares are subject to adjustment under certain conditions until the expiration date.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(k) Investments in companies considered to be an affiliate of the Fund, for purposes of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;433,669,495) &#151; 125.9%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">393,951,147</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD bgcolor="#629be2" align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Liquidity Funds, TempFund,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Institutional Class</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,320,934</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16,254</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Institutional Class, 0.18% (k)(l)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,320,934</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,320,934</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(l) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;9,320,934) &#151; 3.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,320,934</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Fund compliance purposes, the Fund industry classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the industry sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Fund management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">industry sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Options Purchased</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Over-the-Counter Call Options</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=11 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts as of October 31, 2009 were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marsico Parent Superholdco LLC, expiring 12/21/19</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Currency</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Settlement</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at USD 942.86, Broker Goldman Sachs Group, Inc.</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,110</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchased</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sold</FONT></B>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counterparty</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Options Purchased (Cost &#151; &#36;25,422) &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,110</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">248,000</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365,155</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/03/09 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(186)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;443,015,851*) &#151; 128.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">403,278,191</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD70,188,421</FONT>&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EUR 48,087,500</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11/18/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(576,271)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities in Excess of Other Assets &#151; (10.1)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31,593,957)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,468,195</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GBP</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,811,500</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/27/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(65,153)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (18.8)%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(58,812,035)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,038,130</FONT>&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MXN 14,000,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citibank NA</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/27/10</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,353)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 312,872,199</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (650,963)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of October 31,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on single-name issue &#151; buy protection oustanding as of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 443,044,301</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pay</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,539,776</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counter-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(52,305,886)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issuer</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">party</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expiration</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Appreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (39,766,110)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ford Motor Co.</FONT>&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deutsche</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">September</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank AG</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 275</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,930</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on single-name issues &#151; sold protection outstanding as of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Non-income producing security.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Variable rate security. Rate shown is as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Receive</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counter-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issuer</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=right colspan=7 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">party Expiration Rating</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Represents a payment-in-kind security which may pay interest/dividends in</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">additional par/shares.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BAA Ferrovial</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Junior Term</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deutsche</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan</FONT>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.00%</FONT>&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank AG March 2012</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NR</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GPB 1,800 &#36;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(388,694)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using Standard &amp; Poor&#146;s rating of the issuer.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=10>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The maximum potential amount the Fund may pay should a negative credit</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">event take place as defined under the terms of the agreement.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
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	<TD align=left colspan=7>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps on index issue &#151; buy protection oustanding as of October 31,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of October 31, 2009 in</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determining the fair valuation of the Fund&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Pay</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Notional</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fixed</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Counter-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Amount</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Unrealized</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Issuer</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">party</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expiration</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LCDX North</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">America Index</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 90,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Suisse</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">June</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,320,934</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Volume 1</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00% International</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">USD 465</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (65,282)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,411,784</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fair Value Measurements &#151; Various inputs are used in determining the fair value of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments, which are as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107,959</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,186,766</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">214,513,792</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices
for</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign Government Obligations</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,472,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warrants</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,176</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">306,305,988</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Stocks</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,485</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">288,246</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84,427,073</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other Interests</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,726,281</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Warrants</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">87,554,309</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 403,272,081</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11,040</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (716,245)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,531</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(461,174)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,571</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,177,419)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other financial instruments are swaps, foreign currency exchange contracts,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unfunded loan commitments and options. Swaps, foreign currency exchange</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts and unfunded loan commitments are valued at the unrealized appre-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ciation/depreciation on the instrument and options are shown at market value.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a reconciliation of investments for unobservable inputs (Level 3) used in determining fair value:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in Securities</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Stocks</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loan Interests</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interests</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Warrants</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of October 31, 2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; &#36;120,800,878 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">318</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 120,801,196</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">103,138</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">103,138</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,210,121)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,210,121)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation/depreciation</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,906,002</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,383,496) &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,051)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,514,455</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(44,870,950)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,383,369</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,051</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(42,479,530)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 112,485</FONT>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 288,246</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,301,874)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,726,090</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,174,829)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance as of October 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 112,485</FONT>&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 288,246 &#36; 84,427,073 &#36;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,726,281 &#36;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 87,554,309</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=10 style="border-bottom:1px solid #000000;">
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Included in the related net change in unrealized appreciation/depreciation on the
Statements of Operations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Financial</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Instruments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Balance, as of October 31, 2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (543,254)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accrued discounts/premiums</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">154,560</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases (sales)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net transfers in/out of Level 3</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,531</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(72,480)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Balance, as of October 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,531</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (461,174)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">35</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_38"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
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<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Enhanced</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Allocation</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Allocation</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Allocation</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Allocation</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Income</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust I, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust II, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust III</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust IV</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(PSW)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(PSY)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BPP)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BTZ)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(CII)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; unaffiliated</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 80,372,818</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 399,129,254</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 172,356,269</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 555,220,835</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 604,321,715</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 393,957,257</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; affiliated</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,286,296</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,019,397</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,450,797</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">267,832,781</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,567,455</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,320,934</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized appreciation on swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,930</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">702</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">320</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">179,334</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash collateral pledged for options written</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,228,905</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash collateral for swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">600,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">600,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swap premiums paid</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,776</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency at value</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">424</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">529</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,407</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,337,968</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments sold receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,531,774</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">141,858,976</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62,124,877</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">117,670,917</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,280,263</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,625,542</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,232,806</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,597,165</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,228,881</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,302,689</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,131,832</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">129,555</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">133,293</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,707</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">832,499</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,348,426</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Margin variation receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,719</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,563</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">197,020</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income receivable &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">256</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">304</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">341</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,893</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Principal paydown receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,934</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,733</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,181</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">81,418</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">124,654</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prepaid expenses</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,878</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86,085</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,606</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">119,075</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,894</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">127,541</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total assets</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">153,634,551</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">588,913,826</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">288,338,368</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">949,857,907</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">649,810,065</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">423,522,936</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,952</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337,904</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,952</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">675,809</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">453,976</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on unfunded loan commitments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">70,949</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on foreign currency</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650,963</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loan payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options written at value</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">166,210</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,377,146</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reverse repurchase agreements</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,972,041</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,510,590</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,234,688</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,576,368</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments purchased payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,023,936</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,384,912</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35,248,237</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment advisory fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">71,449</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">303,207</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">159,933</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">522,028</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">469,580</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">206,219</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income dividends payable &#151; Common Shares</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,588</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">196,712</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69,120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550,627</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,113</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,067</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,133</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,067</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,267</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,317</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,761</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,368</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,687</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,808</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,826</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other affiliates payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">728</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,172</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,636</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,428</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,882</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,224</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer&#146;s and Directors&#146; fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">181</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53,660</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,606</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">82,674</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,287</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,876</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other accrued expenses payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,591</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">109,424</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76,539</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">189,457</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">111,544</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">185,052</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">845,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total liabilities</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,327,294</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,530,170</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,778,228</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,814,676</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31,348,351</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,838,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares at Redemption Value</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,000 per share liquidation preferrence, plus</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unpaid dividends</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,6,7</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,258,949</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">169,090,727</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">70,426,884</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231,044,104</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,812,035</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 96,048,308</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 409,292,929</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 204,133,256</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 654,999,127</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 618,461,714</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 312,872,199</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders Consist of</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in capital</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,9,10</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 237,664,112</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 942,700,922</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 423,649,824</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,138,011,175</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 808,123,162</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 427,560,397</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed (distributions in excess of) net</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">636,666</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,088,988</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">952,028</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,348,832</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(397,610)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accumulated net realized loss</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(128,402,541)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(451,276,374)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(187,666,466)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(403,003,336)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(131,729,362)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(73,097,284)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,849,929)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(84,220,607)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(32,802,130)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(81,357,544)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(57,932,086)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(41,193,304)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 96,048,308</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 409,292,929</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 204,133,256</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 654,999,127</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 618,461,714</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 312,872,199</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value per Common Share</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.31</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11.05</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.64</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.40</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.29</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at cost &#151; unaffiliated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 94,148,823</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 483,046,802</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 205,009,029</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 637,401,845</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 665,068,380</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 433,694,917</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at cost &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 33,286,296</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 41,019,397</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 51,450,797</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 267,832,781</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,567,455</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,320,934</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency at cost</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 368</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 459</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 43</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,142</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,386,817</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Premiums received</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 828,039</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,193,459</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares par value per share</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,610</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,761</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,817</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,240</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,352</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares authorized</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,460</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares par value per share</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares outstanding</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,311,941</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,807,418</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,467,785</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,828,157</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,953,312</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,545,239</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares authorized</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">199,994,540</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">199,978,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200 million</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<TABLE border=0 cellspacing=0>
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<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Operations</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Enhanced</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Allocation</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Allocation</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Allocation</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Allocation</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Income</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust I, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust II, Inc.</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust III</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust IV</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(PSW)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(PSY)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BPP)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BTZ)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(CII)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Income</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,416,978</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 37,527,272</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,161,194</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 41,120,279</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,342</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26,881,305</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,464,323</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,794,850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,227,665</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,091,488</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,659,173</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign taxes withheld</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(115,844)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">130,058</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">155,313</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">133,485</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">486,591</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">143,663</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,848</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility and other fees</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">503,103</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,011,359</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,477,435</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,522,344</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">59,698,358</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,688,334</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,408,256</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment advisory</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">732,203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,091,438</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,631,690</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,363,633</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,832,658</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,774,485</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commissions for Preferred Shares</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74,688</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">348,733</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">134,702</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375,820</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,063</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professional</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">66,950</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72,163</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79,888</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">142,814</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">75,892</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">253,450</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transfer agent</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,330</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">126,203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,871</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35,582</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">93,722</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,425</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting services</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,930</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120,409</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84,218</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">163,930</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">161,229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,206</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Printing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,291</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,934</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,147</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">147,566</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,877</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer and Directors</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,058</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53,432</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35,932</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90,453</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">70,049</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,794</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Registration</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,907</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,278</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,673</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,571</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,416</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Custodian</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,980</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,134</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,059</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,325</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,648</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,304</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowing costs</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">391,557</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Miscellaneous</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,634</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107,378</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,515</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">130,998</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,161</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">117,808</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses excluding interest expense</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,044,244</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,016,731</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,147,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,504,794</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,398,807</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,916,028</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,223</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229,496</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">389,341</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,784,509</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,140,406</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,146,467</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,246,227</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,536,641</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,289,303</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,398,807</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,056,434</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Less fees waived by advisor</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,003)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,491)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,506)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(95,646)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,172)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(709,042)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Less fees paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,843)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(852)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,758)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,210)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,130,621</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,230,884</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,511,377</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,192,447</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,391,635</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,347,392</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,880,738</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,246,551</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,010,967</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,505,911</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,296,699</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,060,864</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Realized and Unrealized Gain (Loss)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss) from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(55,149,960)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(188,070,488)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(112,478,894)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(248,073,396)</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(103,821,441)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(44,719,252)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts and swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,780,676)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,923,503)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,915,858)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,741,351)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(617,742)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,014,281)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency transactions</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,366</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,348</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,255</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,653,326)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options written</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">-</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,763,345</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,995,108</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(56,926,270)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(196,959,541)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(116,393,404)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(247,029,147)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(51,444,075)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(48,386,859)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation on:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77,627,511</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">284,111,656</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160,001,314</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">372,102,104</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">142,551,744</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">118,712,825</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts and swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">527,517</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,647,334</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">906,527</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,642,624</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">371,495</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency transactions</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,229)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(32,957)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(990)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(158,256)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(948)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,642,896)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options written</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,230,492</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,758,405</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unfunded corporate loans</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">96,088</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,150,799</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">285,726,033</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160,906,851</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">378,816,964</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">148,309,201</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,537,512</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total realized and unrealized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,224,529</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">88,766,492</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,513,447</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">131,787,817</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">96,865,126</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64,150,653</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(774,824)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,570,342)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(577,861)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,828,948)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(971,243)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Increase in Net Assets Applicable to Common</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shareholders Resulting from Operations</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,330,443</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 130,442,701</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,946,553</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 179,464,780</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 109,161,825</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 86,240,274</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=2>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Note 8 of the Notes to the Financial Statements for details of
borrowings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">37</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_40"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=27%></TD>
     <TD width=11%></TD>
     <TD width=11%></TD>
     <TD width=1%></TD>
     <TD width=9%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust I, Inc. (PSW)</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust II, Inc. (PSY)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31,</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Applicable to Common Shareholders:</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,880,738</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,531,692</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 45,246,551</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,160,283</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized loss</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(56,926,270)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(40,404,468)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(196,959,541)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(147,042,661)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,150,799</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(83,863,786)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">285,726,033</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(333,625,419)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(774,824)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,921,335)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,570,342)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(19,937,495)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) in net assets applicable to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">resulting from operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,330,443</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(111,657,897)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">130,442,701</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(430,445,292)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Common Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,498,069)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,521,666)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(45,358,157)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(46,831,403)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,345,345)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(545,246)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(116,310)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,002,427)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in net assets resulting from dividends and distributions</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,843,414)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,066,912)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(45,474,467)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(55,833,830)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of common dividends</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">131,419</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,192,453</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total increase (decrease) in net assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,618,448</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(124,724,809)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86,160,687</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(486,279,122)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76,429,860</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">201,154,669</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">323,132,242</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">809,411,364</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 96,048,308</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 76,429,860</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 409,292,929</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 323,132,242</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 636,666</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,283,192</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,088,988</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,207,075</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust III (BPP)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust IV (BTZ)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 1, 2008</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to October 31,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">December 31,</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Applicable to Common Shareholders:</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,010,967</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 27,233,861</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 37,729,277</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 51,505,911</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,908,426</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized loss</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(116,393,404)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(47,985,932)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(24,690,221)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(247,029,147)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(113,133,432)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160,906,851</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(149,715,592)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(61,889,014)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">378,816,964</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(408,221,553)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(577,861)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,653,232)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,458,715)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,828,948)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(17,100,517)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(87,490)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) in net assets applicable to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">resulting from operations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,946,553</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(176,120,895)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(60,396,163)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">179,464,780</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(469,547,076)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Common Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(17,461,459)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(15,206,928)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(29,219,599)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(48,398,817)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(46,857,132)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(312,510)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,250,036)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,480,035)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,820,986)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(24,678,883)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(43,518,226)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in net assets resulting from dividends and distributions</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,711,495)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,686,963)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(32,353,095)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(73,077,700)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(90,375,358)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of common dividends</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">587,363</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101,702</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">770,755</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total increase (decrease) in net assets</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,822,421</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(196,706,156)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(91,978,503)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">106,387,080</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(559,922,434)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of period</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">161,310,835</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">358,016,991</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449,995,494</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">548,612,047</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,108,534,481</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of period</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 204,133,256</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 161,310,835</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 358,016,991</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 654,999,127</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 548,612,047</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed (distributions in excess of) net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 952,028</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,846,583</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (2,571,328)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,348,832</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,486,479</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Enhanced Capital</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Income Fund, Inc. (CII)</FONT></B>&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period January 1,</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008 to</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 1, 2008</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">December 31,</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">December 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Applicable to Common Shareholders:</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,296,699</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,834,944</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,828,423</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,060,864</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 33,370,850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 47,903,772</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(51,444,075)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,942,502</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,442,607</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(48,386,859)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(19,428,459)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,326,522)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">148,309,201</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(83,432,417)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(17,410,396)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,537,512</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(136,762,427)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,345,656)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders from net</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(971,243)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,542,312)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,723,631)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) in net assets applicable to</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders resulting from operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">109,161,825</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(74,654,971)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,860,634</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86,240,274</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(128,362,348)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,507,963</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Common Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12,510,205)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,820,467)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,178,081)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,963,106)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(24,133,870)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(26,833,571)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(50,728,478)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,621,956)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(25,569,419)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(19,660,314)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,292,188)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,994,857)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(8,473,282)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in net assets resulting from dividends and</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">distributions to shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(82,898,997)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(17,734,611)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(29,747,500)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,957,963)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(24,133,870)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(35,306,853)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Value of shares resulting from reorganization</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">420,968,153</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of common dividends</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,234,875</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">820,433</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase in net assets derived from</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">capital share transactions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">424,203,028</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">820,433</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total increase (decrease) in net assets</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450,465,856</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(92,389,582)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(18,886,866)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48,282,311</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(152,496,218)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31,978,457)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">167,995,858</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">260,385,440</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">279,272,306</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">264,589,888</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">417,086,106</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">449,064,563</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 618,461,714</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 167,995,858</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 260,385,440</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 312,872,199</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 264,589,888</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 417,086,106</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed (distributions in excess of)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 205,627</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (397,610)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,661,698</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 219,332</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">39</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=42%></TD>
     <TD width=27%></TD>
     <TD width=12%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statement of Cash Flows</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Floating Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Provided by Operating Activities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase in net assets resulting from operations, excluding dividends to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 87,211,517</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in interest receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,477,996</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in commitment fees receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,301</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in other assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,618)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in income receivable &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(341)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in prepaid expenses</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(74,683)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in swaps receivable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,241</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in swaps payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(150,019)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in investment advisor payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,245)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in interest expense payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(86,768)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in other affiliates payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(884)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in accrued expenses payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,637</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in other liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">838,450</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in Officer&#146;s and Directors&#146; payable</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,273</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(67,171,527)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amortization of premium and discount on investments</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,498,618)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in-kind income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(890,200)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Increase in cash collateral on swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(600,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net periodic and termination payments of swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(340,836)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Proceeds from sales and paydowns of long-term investments</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">262,712,645</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Purchases of long-term investments</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(131,639,514)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net purchases of short-term securities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,820,185)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash provided by operating activities</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">141,968,622</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Used for Financing Activities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash receipts from borrowings</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">163,209,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash payments from borrowings</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(272,359,375)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash dividends paid to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(38,016,260)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(980,133)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash used for financing activities</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(148,146,393)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Impact from Foreign Exchange Fluctuations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash impact from foreign exchange fluctuations</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">146,028</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash:</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net decrease in cash</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,031,743)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash and foreign currency at beginning of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,549,045</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash and foreign currency at end of year</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,517,302</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Cash Flow Information:</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash paid during the year for interest</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,227,174</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the year, based on the average borrowing
outstanding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in relation to total assets.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
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<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust I, Inc. (PSW)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.43</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.54</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.25</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.36</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23.69</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.86</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.70</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.01</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.14</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.16</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.06</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12.06)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.41)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.07</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.09)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.08)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.48)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.71)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.63)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.40)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.84</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.84)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.11)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.58</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.67</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.83)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.22)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.18)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.69)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.00)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.13)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.05)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.42)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.96)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.27)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.60)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.69)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.00)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.31</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.43</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.54</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.25</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.36</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.24</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.00</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.29</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21.26</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21.03</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46.46%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(58.09)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5.03)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.97%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.25%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37.59%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(55.38)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(12.05)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.69%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.73%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.61%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.00%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.32%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.26%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.59%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.00%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.32%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.26%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest expense</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.44%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.26%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.79%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.38%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.70%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.23%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.03%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.29%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.84%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.71%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.76%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.09%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.86%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.52%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 96,048</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 76,430</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 201,155</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 228,734</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 229,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 136,500</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 136,500</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 136,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,972</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,024</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 590</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,321</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,692</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,690</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">119%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">88%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 84,663</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 53,009</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 61,846</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 66,907</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,115</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and
distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred
Shareholders.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">41</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=32%></TD>
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     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=1%></TD>
     <TD width=6%></TD>
     <TD width=2%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust II, Inc. (PSY)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.96</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.93</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.36</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.26</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23.48</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.73</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.03</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.09</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11.84)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.35)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.91)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.09)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.49)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.73)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.65)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.40)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.19</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.60)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.06)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.70</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.78</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.12)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.15)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.16)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.51)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.00)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.22)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.21)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.09)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.12)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.37)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.37)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.60)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.00)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.96</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.93</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.36</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.26</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.90</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.94</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.12</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21.20</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48.36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(55.71)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.35)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.77%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.73%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29.37%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(46.97)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9.65)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.77%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.43%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.41%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.27%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.23%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.41%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.27%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.23%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest expense</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.33%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.40%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.23%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.23%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15.05%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.71%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.29%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.26%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.96%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.19%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.04%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.34%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.96%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.73%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.86%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.67%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.95%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.30%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.23%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 409,293</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 323,132</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 809,411</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 907,897</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 903,601</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 169,025</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 275,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 550,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 550,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 550,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,511</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 54,369</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15,842</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 94,908</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14,375</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">81%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 85,547</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 54,408</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 61,817</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 66,294</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 66,077</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amount is less than &#36;(0.01) per share.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and
distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred
Shareholders.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">42</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust III (BPP)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 1,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008 to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended December 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2004</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.77</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.47</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24.52</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24.43</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25.88</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25.58</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.05</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.05</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.22</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.74)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.72)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.62</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.82)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.33</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.03)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.31)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.62)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.46)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.26)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.16)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.12)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.13)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.46</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9.57)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3.29)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.09</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.90</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.37</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.95)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.83)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.59)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.58)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.74)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.00)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.42)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.61)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.07)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.23)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.30)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.18)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.13)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.76)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.00)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.35)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.07)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11.05</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.77</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.47</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24.52</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24.43</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25.88</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.94</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.51</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.31</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26.31</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24.20</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25.39</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(51.22)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13.86)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.89%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.81%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.15%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36.42%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(46.76)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(28.62)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17.98%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.83%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.01%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.66%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.46%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.51%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.44%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.51%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.44%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest expense</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.39%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.39%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.22%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.19%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.08%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.53%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.46%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.37%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.66%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.38%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.19%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.70%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.89%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.27%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.62%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.70%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.34%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.20%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.58%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.10%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.04%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 204,133</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 161,311</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 358,017</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 449,995</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 447,190</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 473,809</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,425</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 110,400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 220,800</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 220,800</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 220,800</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 220,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13,235</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,281</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16,330</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 51,995</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 903</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,303</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,904</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 782</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">121%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">91%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">88%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 97,465</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 61,540</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 65,554</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 75,965</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 75,642</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 78,650</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and
distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate total investment return.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred
Shareholders.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Annualized.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">43</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust IV (BTZ)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">December 27,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10.59</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21.39</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23.88</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.99</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.33</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.54</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.06)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.86)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.07)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.33)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.31)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.46</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9.06)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.92)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.93)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.90)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.93)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.48)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.84)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.47)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.41)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.74)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.40)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital charge with respect to issuance of:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.04)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.13)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total capital charges</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.17)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of period</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.64</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10.59</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21.39</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of period</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10.96</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.36</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.65</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41.06%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(44.27)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.42)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38.38%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(43.51)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20.34)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.60%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.65%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.90%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.58%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.65%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.88%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.21%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.93%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.63%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.74%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.89%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.19%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.74%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.86%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 654,999</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 548,612</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,108,534</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 231,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 231,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 462,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 61,576</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 223,512</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 88,291</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 76,521</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 107,377</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 96,468</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">126%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 95,892</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 84,384</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 89,737</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commencement of operations. This information includes the initial
investment by BlackRock Funding, Inc.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period, reflects a deduction of
&#36;1.12 per share sales charge from initial offering price of &#36;25.00 per share.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and
distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate total investment return.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred
Shareholders.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Annualized.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">44</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=7>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Enhanced Capital and Income Fund, Inc. (CII)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 1,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">April 30,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008 to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2004</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended December 31,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">December 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2004</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.78</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21.36</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.91</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.31</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.76</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.10</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.29</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.23</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.31</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.37</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.46</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.46</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.27</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6.36)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.58</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.69</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.29</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.84</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.56</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6.13)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.89</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.06</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.75</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.30</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.29)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.23)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.34)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.33)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.47)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.48)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.19)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.62)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.10)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.13)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.73)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.11)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.46)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.60)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.94)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.45)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.44)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.46)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.20)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.60)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital charges with respect to the issuance of shares</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.04)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.40</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.78</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21.36</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22.91</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.31</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.76</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.76</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.37</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.06</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20.41</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.21</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.32</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">4</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22.01%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(29.46)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.79%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21.70%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.69%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.30%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29.88%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(32.58)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.47%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27.95%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.52%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5.36)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.10%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.54%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.96%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.19%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.10%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.54%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.96%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.19%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.42%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.20%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.46%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.75%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.28%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.52%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 618,462</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 167,996</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 260,385</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 279,272</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 260,638</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 266,345</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 100,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 109,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 109,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding, during the period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 38,788</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 107,504</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 109,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 98,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">138%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage, end of period per &#36;1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,793</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,391</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,444</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commencement of operations. This information includes the initial
investment by BlackRock Investment Managers, LLC.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period, reflects a deduction of
&#36;0.90 per share sales charge from initial offering price of &#36;20.00 per share.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and
distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate total investment return.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Annualized.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">45</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=24%></TD>
     <TD width=11%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=1%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust (BGT)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 1,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 30,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008 to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2004</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended December 31,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">December 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2004</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11.24</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.71</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.11</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.13</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.21</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.10</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.42</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.03</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.99</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.33</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.72</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6.62)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.39)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.06)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.17)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.04)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.24)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.54)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.48)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.33)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.04)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.66</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5.44)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.44</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.64</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.19)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.03)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.14)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.44)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.22)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.37)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.42)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.36)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.61)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.03)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.50)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.46)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.22)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.37)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital charges with respect to issuance of:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.04)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.12)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total capital charges</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.16)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of period</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.29</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11.24</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.71</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.11</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.13</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.21</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of period</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.58</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9.63</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.78</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.27</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.16</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.63</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39.51%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31.62)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.93%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.63%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.57%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54.14%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34.24)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.92)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21.31%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.34)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5.00)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.22%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.67%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.75%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.56%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.26%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.68%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.89%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.33%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.43%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.23%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.97%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest expense</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.21%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.19%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.15%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.97%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.92%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.56%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.83%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.38%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.52%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.04%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.38%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.75%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.88%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.51%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.71%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.62%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.81%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.95%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.87%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.81%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.42%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 312,872</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 264,590</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 417,086</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 449,065</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 449,219</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 451,126</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end of period (000)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 58,800</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 58,800</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 243,450</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 243,450</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 243,450</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 243,450</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrowings outstanding, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 123,150</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26,108</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Average borrowings outstanding during the period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 53,156</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,780</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,524</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19,562</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,722</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 114</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end of period</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 158,029</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 137,505</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,849</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,810</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,139</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,330</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commencement of operations. This information includes the initial
investment by BlackRock Funding, Inc.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period, reflects a deduction of
&#36;0.90 per share sales charge from initial offering price of &#36;20.00 per share.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amount is less than &#36;(0.01) per share.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=9>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result in substantially different returns.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and
distributions.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate total investment return.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred
Shareholders.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Annualized.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">46</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_49"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">1. Organization and Significant Accounting Policies:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust I, Inc. (formerly BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred and Corporate Income Strategies Fund, Inc.) (&#147;PSW&#148;), BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Allocation Income Trust II, Inc. (formerly BlackRock Preferred Income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Strategies Fund, Inc.) (&#147;PSY&#148;) and BlackRock Enhanced Capital and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income Fund, Inc. (&#147;CII&#148;) are registered as diversified, closed-end manage-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment investment companies under the Investment Company Act of 1940,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as amended (the &#147;1940 Act&#148;). BlackRock Credit Allocation Income Trust III</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(formerly BlackRock Preferred Opportunity Trust) (&#147;BPP&#148;), BlackRock Credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allocation Income Trust IV (formerly BlackRock Preferred and Equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advantage Trust) (&#147;BTZ&#148;) and BlackRock Floating Rate Income Trust (for-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">merly BlackRock Global Floating Rate Income Trust) (&#147;BGT&#148;) are registered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as non-diversified, closed-end management investment companies under</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the 1940 Act. PSW, PSY and CII are organized as Maryland corporations.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP, BTZ and BGT are organized as Delaware statutory trusts. PSW, PSY,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP, BTZ, CII and BGT are collectively referred to as the &#147;Funds&#148; or individu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ally as the &#147;Fund.&#148; The Funds&#146; financial statements are prepared in con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">formity with accounting principles generally accepted in the United States</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of America, which may require the use of management accruals and esti-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mates. Actual results may differ from these estimates. The Board of Directors</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Board of Trustees of the Funds, as applicable, are referred to throughout</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">this report as the &#147;Board of Directors&#148; or the &#147;Board.&#148; The Funds determine</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and make available for publication the net asset value of their Common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares on a daily basis.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">CII Reorganization: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board and the shareholders of each of BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Enhanced Equity Yield Fund, Inc. (&#147;EEF&#148;), BlackRock Enhanced Equity Yield</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Premium Fund, Inc. (&#147;ECV&#148;) (the &#147;Target Funds&#148;) and CII approved the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reorganization of each Target Fund into CII (the &#147;Reorganizations&#148;). The Reor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ganizations were tax-free events and were effective as of the opening for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">business of the New York Stock Exchange (&#147;NYSE&#148;) on November 3, 2008.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=21%></TD>
     <TD width=20%></TD>
     <TD width=21%></TD>
     <TD width=18%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Target Funds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Acquiring Fund</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EEF</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ECV</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the agreement and plan of reorganization between each Target</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund and CII, the shares of each Target Fund (&#147;Target Fund Shares&#148;) were</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchanged for CII shares. The conversion ratios for Target Fund Shares</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EEF/CII</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.80653563</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ECV/CII</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.81144752</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The net assets of CII before and after the Reorganizations and CII shares</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issued and Target Fund Shares redeemed in connection with the Reorgani-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">zations were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Target Funds</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Acquiring</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">After the</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Prior to the</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Reorganizations</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Reorganizations</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares Issued</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redeemed</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;591,399,963</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;170,431,810</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,542,706</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,766,622</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=19%></TD>
     <TD width=23%></TD>
     <TD width=19%></TD>
     <TD width=19%></TD>
     <TD width=17%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Included in the net assets acquired by CII were the following components:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Target</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Paid-In</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Realized</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Unrealized</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loss</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Depreciation</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">EEF</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;329,483,362</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(16,478,636)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(80,066,510)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;232,938,216</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ECV</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;270,207,354</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(15,306,983)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(66,870,434)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;188,029,937</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a summary of significant accounting policies followed by</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Valuation: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds value their bond investments on the basis of last avail-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">able bid prices or current market quotations provided by dealers or pricing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services selected under the supervision of each Fund&#146;s Board. Floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loan interests are valued at the mean of the bid prices from one or more</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">brokers or dealers as obtained from a pricing service. In determining the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of a particular investment, pricing services may use certain informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion with respect to transactions in such investments, quotations from deal-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ers, pricing matrixes, market transactions in comparable investments, various</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">relationships observed in the market between investments and calculated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">yield measures based on valuation technology commonly employed in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market for such investments. Swap agreements are valued utilizing quotes</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">received daily by the Funds&#146; pricing service or through brokers, which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">derived using daily swap curves and trades of underlying securities. Invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments in open-end investment companies are valued at net asset value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each business day. Short-term securities with maturities less than 60 days</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may be valued at amortized cost, which approximates fair value. The Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value their investments in the Cash Sweep Series of BlackRock Liquidity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series, LLC at fair value, which is ordinarily based upon their pro rata own-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ership in the net assets of the underlying fund.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Securities and other assets and liabilities denominated in foreign curren-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cies are translated into U.S. dollars using exchange rates determined as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the close of business on the NYSE. Foreign currency exchange contracts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are valued at the mid between the bid and ask prices and are determined</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as of the close of business on the NYSE. Interpolated values are derived</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">when the settlement date of the contract is an interim date for which quo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tations are not available.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity investments traded on a recognized securities exchange or the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NASDAQ Global Market System are valued at the last reported sale price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that day or the NASDAQ official closing price, if applicable. For equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments traded on more than one exchange, the last reported sale</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price on the exchange where the stock is primarily traded is used. Equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments traded on a recognized exchange for which there were no</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sales on that day are valued at the last available bid (long positions) or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ask (short positions) price. If no bid or ask price is available, the prior day&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price will be used, unless it is determined that such prior day&#146;s price no</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">longer reflects the fair value of the security.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Exchange-traded options are valued at the mean between the last bid and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ask prices at the close of the options market in which the options trade. An</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange-traded option for which there is no mean price is valued at the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">last bid (long positions) or ask (short positions) price. If no bid or ask price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is available, the prior day&#146;s price will be used, unless it is determined that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such prior day&#146;s price no longer reflects the fair value of the option. Over-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the-counter (&#147;OTC&#148;) options are valued by an independent pricing service</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or through brokers using a mathematical model which incorporates a</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 47</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">number of market data factors, such as the trades and prices of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">underlying instruments.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In the event that application of these methods of valuation results in a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price for an investment which is deemed not to be representative of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market value of such investment or is not available, the investment will be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">valued by a method approved by the Board as reflecting fair value (&#147;Fair</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Value Assets&#148;). When determining the price for Fair Value Assets, the invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment advisor and/or sub-advisor seeks to determine the price that each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund might reasonably expect to receive from the current sale of that asset</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in an arm&#146;s-length transaction. Fair value determinations shall be based</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">upon all available factors that the investment advisor and/or sub-advisor</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">deems relevant. The pricing of all Fair Value Assets is subsequently reported</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the Board or a committee thereof.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Generally, trading in foreign instruments is substantially completed each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">day at various times prior to the close of business on the NYSE. The values</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of such instruments used in computing the net assets of each Fund are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determined as of such times. Occasionally, events affecting the values of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such instruments may occur between the times at which they are deter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mined and the close of business on the NYSE that may not be reflected in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the computation of each Fund&#146;s net assets. If events (for example, a com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pany announcement, market volatility or a natural disaster) occur during</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such periods that are expected to materially affect the value of such instru-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, those instruments may be Fair Value Assets and be valued at their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fair value as determined in good faith by the Board or by the investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisor using a pricing service and/or procedures approved by the Board.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Foreign Currency Transactions: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency amounts are translated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">into United States dollars on the following basis: (i) market value of invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment securities, assets and liabilities at the current rate of exchange; and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(ii) purchases and sales of investment securities, income and expenses at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the rates of exchange prevailing on the respective dates of such transactions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds report foreign currency related transactions as components of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">realized gain (loss) for financial reporting purposes, whereas such compo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nents are treated as ordinary income for federal income tax purposes.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Capital Trusts and Trust Preferreds: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities are typically issued by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">corporations, generally in the form of interest-bearing notes with preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities characteristics, or by an affiliated business trust of a corporation,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">generally in the form of beneficial interests in subordinated debentures or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similarly structured securities. The securities can be structured as either</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fixed or adjustable coupon securities that can have either a perpetual or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">stated maturity date. Dividends can be deferred without creating an event</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of default or acceleration, although maturity cannot take place unless all</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cumulative payment obligations have been met. The deferral of payments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not affect the purchase or sale of these securities in the open market.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Payments on these securities are treated as interest rather than dividends</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for Federal income tax purposes. These securities can have a rating that is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">slightly below that of the issuing company&#146;s senior debt securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Preferred Stock: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may invest in preferred stocks. Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">stock has a preference over common stock in liquidation (and generally</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in receiving dividends as well) but is subordinated to the liabilities of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issuer in all respects. As a general rule, the market value of preferred stock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with a fixed dividend rate and no conversion element varies inversely with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rates and perceived credit risk, while the market price of convert-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ible preferred stock generally also reflects some element of conversion</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value. Because preferred stock is junior to debt securities and other obli-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gations of the issuer, deterioration in the credit quality of the issuer will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cause greater changes in the value of a preferred stock than in a more</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">senior debt security with similar stated yield characteristics. Unlike interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">payments on debt securities, preferred stock dividends are payable only if</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declared by the issuer&#146;s board of directors. Preferred stock also may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">subject to optional or mandatory redemption provisions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Floating Rate Loan Interests: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may invest in floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loans, which are generally non-investment grade, made by banks, other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial institutions, and privately and publicly offered corporations.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating rate loans are senior in the debt structure of a corporation.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating rate loans generally pay interest at rates that are periodically</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determined by reference to a base lending rate plus a premium. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">base lending rates are generally (i) the lending rate offered by one or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">more European banks, such as LIBOR (London InterBank Offered Rate),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(ii) the prime rate offered by one or more US banks or (iii) the certificate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of deposit rate. The Funds consider these investments to be investments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in debt securities for purposes of their investment policies.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds earn and/or pay facility and other fees on floating rate loans.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other fees earned/paid include commitment, amendment, consent and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prepayment penalty fees. Facility, commitment and amendment fees are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">typically amortized over the term of the loan. Consent fees and various</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other fees are recorded as income. Prepayment penalty fees are recorded</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as realized gains. When a Fund buys a floating rate loan it may receive a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">facility fee and when it sells a floating rate loan it may pay a facility fee. On</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">an ongoing basis, the Funds may receive a commitment fee based on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">undrawn portion of the underlying line of credit portion of a floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loan. In certain circumstances, the Funds may receive a prepayment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">penalty fee upon the prepayment of a floating rate loan by a borrower.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other fees received by the Funds may include covenant waiver fees and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">covenant modification fees.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may invest in multiple series or tranches of a loan. A different</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">series or tranche may have varying terms and carry different associated risks.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Floating rate loans are usually freely callable at the issuer&#146;s option. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds may invest in such loans in the form of participations in loans</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;Participations&#148;) and assignments of all or a portion of loans from third</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">parties. Participations typically will result in the Funds having a contractual</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">relationship only with the lender, not with the borrower. The Funds will have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the right to receive payments of principal, interest and any fees to which it</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is entitled only from the lender selling the Participation and only upon</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receipt by the lender of the payments from the borrower.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In connection with purchasing Participations, the Funds generally will have</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">no right to enforce compliance by the borrower with the terms of the loan</FONT></P>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">48 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreement relating to the loans, nor any rights of offset against the borrower,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the Funds may not benefit directly from any collateral supporting the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loan in which it has purchased the Participation.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As a result, the Funds will assume the credit risk of both the borrower and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the lender that is selling the Participation. The Funds&#146; investments in loan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participation interests involve the risk of insolvency of the financial interme-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">diaries who are parties to the transactions. In the event of the insolvency of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the lender selling the Participation, the Funds may be treated as a general</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">creditor of the lender and may not benefit from any offset between the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lender and the borrower.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Reverse Repurchase Agreements: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may enter into reverse</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">repurchase agreements with qualified third party broker-dealers. In a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reverse repurchase agreement, the Funds sell securities to a bank or bro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ker-dealer and agree to repurchase the securities at a mutually agreed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">upon date and price. Interest on the value of the reverse repurchase agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments issued and outstanding is based upon competitive market rates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determined at the time of issuance. The Funds may utilize reverse repur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chase agreements when it is anticipated that the interest income to be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earned from the investment of the proceeds of the transaction is greater</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">than the interest expense of the transaction. Reverse repurchase agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments involve leverage risk and also the risk that the market value of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the securities that the Funds are obligated to repurchase under the agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment may decline below the repurchase price. In the event the buyer of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities under a reverse repurchase agreement files for bankruptcy or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">becomes insolvent, the Funds&#146; use of the proceeds from the agreement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may be restricted while the other party, or its trustee or receiver, determines</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">whether or not to enforce the Funds&#146; obligation to repurchase the securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Defensive Positions: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each of PSW, PSY, BPP and BTZ may vary its invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment policies for temporary defensive purposes during periods in which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the investment advisor believes that conditions in the securities markets or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other economic, financial or political conditions warrant. Under such condi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions, the Funds for temporary defensive purposes may invest up to 100%</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of its total assets in, as applicable and described in each Fund&#146;s prospec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tus, U.S. government securities, certificates of deposit, repurchase agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments that involve purchases of debt securities, bankers&#146; acceptances and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other bank obligations, commercial paper, money market funds and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other debt securities deemed by the investment advisor to be consistent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with a defensive posture, or may hold its assets in cash.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Zero-Coupon Bonds: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may invest in zero-coupon bonds, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are normally issued at a significant discount from face value and do not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provide for periodic interest payments. Zero-coupon bonds may experience</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">greater volatility in market value than similar maturity debt obligations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which provide for regular interest payments.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Segregation and Collateralization: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In cases in which the 1940 Act and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the interpretive positions of the Securities and Exchange Commission</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;SEC&#148;) require that a Fund either deliver collateral or segregate assets in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">connection with certain investments (e.g., written options, foreign currency</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchange contracts, financial futures contracts and swaps), or certain bor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rowings (e.g., reverse repurchase agreements and loan payable) each Fund</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">will, consistent with SEC rules and/or certain interpretive letters issued by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the SEC, segregate collateral or designate on its books and records cash or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other liquid securities having a market value at least equal to the amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that would otherwise be required to be physically segregated. Furthermore,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based on requirements and agreements with certain exchanges and third</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">party broker-dealers, each party has requirements to deliver/deposit secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rities as collateral for certain investments.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Investment Transactions and Investment Income: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For financial reporting</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purposes, investment transactions are recorded on the dates the trans-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">actions are entered into (the trade dates). Realized gains and losses on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment transactions are determined on the identified cost basis. Divi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dend income is recorded on the ex-dividend dates. Dividends from foreign</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities where the ex-dividend date may have passed are subsequently</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">recorded when the Funds have determined the ex-dividend date. Interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income is recognized on the accrual basis. The Funds amortize all premiums</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and discounts on debt securities. Upon notification from issuers, some of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the dividend income received from a real estate investment trust may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be redesignated as a reduction of cost of the related investment and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">realized gain. Consent fees are compensation for agreeing to changes in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the terms of debt instruments and are included in interest income in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Dividends and Distributions: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends from net investment income are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declared and paid monthly (quarterly for CII). Distributions of capital gains</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are recorded on the ex-dividend dates. If the total dividends and distribu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions made in any tax year exceeds net investment income and accumu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lated realized capital gains, a portion of the total distribution may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">treated as a tax return of capital.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Income Taxes: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">It is each Fund&#146;s policy to comply with the requirements of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Internal Revenue Code applicable to regulated investment companies</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and to distribute substantially all of its taxable income to its shareholders.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Therefore, no federal income tax provision is required. Under the applicable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">foreign tax laws, a withholding tax may be imposed on interest, dividends</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and capital gains at various rates.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund files US federal and various state and local tax returns. No</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income tax returns are currently under examination. The statute of limitations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on PSW&#146;s and PSY&#146;s US federal tax returns remains open for the four years</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended October 31, 2009. The statute of limitations on BPP&#146;s, CII&#146;s and BGT&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US federal tax returns remains open for the two years ended December 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007, the period ended October 31, 2008 and year ended October 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009. The statute of limitations on BTZ&#146;s US Federal tax returns remains</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">open for the two years ended October 31, 2009 and the period ended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2007. The statutes of limitations on the Funds&#146; state and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">local tax returns may remain open for an additional year depending upon</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the jurisdiction.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Recent Accounting Standards: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In June 2009, amended guidance was</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issued by the Financial Accounting Standards Board for transfers of finan-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cial assets. This guidance is intended to improve the relevance, representa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional faithfulness and comparability of the information that a reporting</FONT></P>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 49</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">entity provides in its financial statements about a transfer of financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets; the effects of a transfer on its financial position, financial perform-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance, and cash flows; and a transferor&#146;s continuing involvement, if any, in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transferred financial assets. The amended guidance is effective for financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">statements for fiscal years and interim periods beginning after November 15,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009. Earlier application is prohibited. The recognition and measurement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provisions of this guidance must be applied to transfers occurring on or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">after the effective date. Additionally, the enhanced disclosure provisions of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the amended guidance should be applied to transfers that occurred both</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">before and after the effective date of this guidance. The impact of this</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">guidance on the Funds&#146; financial statements and disclosures, if any, is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currently being assessed.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Deferred Compensation and BlackRock Closed-End Share Equivalent</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Investment Plan: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the deferred compensation plan approved by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Fund&#146;s Board, non-interested Directors or Trustees (&#147;Independent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Directors or Trustees&#148;) may defer a portion of their annual complex-wide</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">compensation. Deferred amounts earn an approximate return as though</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">equivalent dollar amounts had been invested in common shares of other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain BlackRock Closed-End Funds selected by the Independent Directors</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or Trustees. This has approximately the same economic effect for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Independent Directors or Trustees as if the Independent Directors or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustees had invested the deferred amounts directly in other certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Closed-End Funds.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The deferred compensation plan is not funded and obligations there-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">under represent general unsecured claims against the general assets of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Fund. Each Fund may, however, elect to invest in common shares of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other certain BlackRock Closed-End Funds selected by the Independent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Directors or Trustees in order to match its deferred compensation obliga-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions. Investments to cover each Fund&#146;s deferred compensation liability,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">if any, are included in other assets in the Statements of Assets and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Liabilities. Dividends and distributions from the BlackRock Closed-End</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund investments under the plan are included in income-affiliated in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Statements of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Other: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Expenses directly related to a Fund are charged to that Fund. Other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">operating expenses shared by several funds are pro rated among those</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds on the basis of relative net assets or other appropriate methods.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pursuant to the terms of the custody agreement, custodian fees may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reduced by amounts calculated on uninvested cash balances, which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shown in the Statements of Operations as fees paid indirectly.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">2. Derivative Financial Instruments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may engage in various portfolio investment strategies both to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increase the returns of the Funds and to economically hedge, or protect,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their exposure to certain risks such as credit risk, equity risk, interest rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk and foreign currency exchange rate risk. Losses may arise if the value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the contract decreases due to an unfavorable change in the price of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the underlying security or if the counterparty does not perform under the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contract. The Funds may mitigate counterparty risk through master net-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ting agreements included within an International Swaps and Derivatives</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Association, Inc. (&#147;ISDA&#148;) Master Agreement between a Fund and each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of its counterparties. The ISDA Master Agreement allows each Fund to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">offset with its counterparty certain derivative financial instruments&#146; pay-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ables and/or receivables with collateral held with each counterparty. The</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of collateral moved to/from applicable counterparties is based</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">upon minimum transfer amounts of up to &#36;500,000. To the extent amounts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">due to the Funds from their counterparties are not fully collateralized con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tractually or otherwise, the Funds bear the risk of loss from counterparty</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">non-performance. See Note 1 &#147;Segregation and Collateralization&#148; for addi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional information with respect to collateral practices.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds&#146; maximum risk of loss from counterparty credit risk on over-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the-counter derivatives is generally the aggregate unrealized gain in excess</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of any collateral pledged by the counterparty to the Funds. For over-the-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">counter purchased options, the Funds bear the risk of loss in the amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the premiums paid and change in market value of the options should</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the counterparty not perform under the contracts. Options written by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds do not give rise to counterparty credit risk, as written options obli-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gate the Funds to perform and not the counterparty. Certain ISDA Master</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreements allow counterparties to over-the-counter derivatives to termi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nate derivative contracts prior to maturity in the event a Fund&#146;s net assets</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">decline by a stated percentage or a Fund fails to meet the terms of its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ISDA Master Agreements, which would cause the Fund to accelerate pay-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment of any net liability owed to the counterparty. Counterparty risk related</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to exchange-traded financial futures contracts and options is minimal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">because of the protection against defaults provided by the exchange on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which they trade.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Financial Futures Contracts: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may purchase or sell financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">futures contracts and options on financial futures contracts to gain expo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sure to, or economically hedge against, changes in the value of interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates (interest rate risk) or foreign currencies (foreign currency exchange</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate risk). Financial futures contracts are contracts for delayed delivery of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities at a specific future date and at a specific price or yield. Pursuant</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the contract, the Funds agree to receive from or pay to the broker an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of cash equal to the daily fluctuation in value of the contract. Such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receipts or payments are known as margin variation and are recognized by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds as unrealized gains or losses. When the contract is closed, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds record a realized gain or loss equal to the difference between the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the contract at the time it was opened and the value at the time</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">it was closed. The use of financial futures contracts involves the risk of an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">imperfect correlation in the movements in the price of financial futures</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts, interest rates and the underlying assets.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Foreign Currency Exchange Contracts: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may enter into foreign</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency exchange contracts as an economic hedge against either specific</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions or portfolio positions (foreign currency exchange rate risk). A</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">foreign currency exchange contract is an agreement between two parties</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to buy and sell a currency at a set exchange rate on a future date. Foreign</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency exchange contracts, when used by a Fund, help to manage the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">overall exposure to the currency backing some of the investments held by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a Fund. The contract is marked-to-market daily and the change in market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value is recorded by a Fund as an unrealized gain or loss. When the con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tract is closed, a Fund records a realized gain or loss equal to the differ-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ence between the value at the time it was opened and the value at the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">time it was closed. The use of foreign currency exchange contracts involves</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the risk that counterparties may not meet the terms of the agreement or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unfavorable movements in the value of a foreign currency relative to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US dollar.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">50 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Options: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may purchase and write call and put options to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increase or decrease their exposure to underlying instruments. A call option</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gives the purchaser of the option the right (but not the obligation) to buy,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and obligates the seller to sell (when the option is exercised), the underly-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing instrument at the exercise price at any time or at a specified time dur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the option period. A put option gives the holder the right to sell and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">obligates the writer to buy the underlying instrument at the exercise price</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at any time or at a specified time during the option period. When a Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purchases (writes) an option, an amount equal to the premium paid</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(received) by a Fund is reflected as an asset (liability). The amount of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset (liability) is subsequently marked-to-market to reflect the current</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market value of the option purchased (written). When an instrument is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purchased or sold through an exercise of an option, the related premium</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">paid (or received) is added to (or deducted from) the basis of the instru-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment acquired or deducted from (or added to) the proceeds of the instru-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment sold. When an option expires (or a Fund enters into a closing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transaction), a Fund realizes a gain or loss on the option to the extent of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the premiums received or paid (or gain or loss to the extent the cost of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closing transaction exceeds the premium received or paid). When a Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">writes a call option, such option is &#147;covered,&#148; meaning that a Fund holds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the underlying instrument subject to being called by the option counter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">party, or cash in an amount sufficient to cover the obligation. When a Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">writes a put option, such option is covered by cash in an amount sufficient</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to cover the obligation.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In purchasing and writing options, a Fund bears the risk of an unfavorable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">change in the value of the underlying instrument or the risk that a Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may not be able to enter into a closing transaction due to an illiquid mar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ket. Exercise of a written option could result in a Fund purchasing or selling</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a security at a price different from the current market value. The Funds may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">execute transactions in both listed and OTC options.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Swaps: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds may enter into swap agreements, in which a Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and a counterparty agree to make periodic net payments on a specified</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">notional amount. These periodic payments received or made by the Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are recorded in the Statements of Operations as realized gains or losses,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respectively. Swaps are marked-to-market daily and changes in value are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">recorded as unrealized appreciation (depreciation). When the swap is ter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">minated, the Fund will record a realized gain or loss equal to the difference</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">between the proceeds from (or cost of) the closing transaction and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s basis in the contract, if any. Swap transactions involve, to varying</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">degrees, elements of interest rate, credit and market risk in excess of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amounts recognized in the Statements of Assets and Liabilities. Such risks</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">involve the possibility that there will be no liquid market for these agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, that the counterparty to the agreements may default on its</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">obligation to perform or disagree as to the meaning of the contractual</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">terms in the agreements, and that there may be unfavorable changes in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rates and/or market values associated with these transactions.</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit default swaps &#151; Certain Funds may enter into credit default</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">swaps to manage its exposure to the market or certain sectors of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market, to reduce their risk exposure to defaults of corporate and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sovereign issuers or to create exposure to corporate and/or sovereign</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issuers to which they are not otherwise exposed (credit risk). The Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">enter into credit default agreements to provide a measure of protection</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">against the default of an issuer (as buyer of protection) and/or gain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credit exposure to an issuer to which it is not otherwise exposed (as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seller of protection). The Funds may either buy or sell (write) credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default swaps on single-name issuers (corporate or sovereign) or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">traded indexes. Credit default swaps on single-name issuers are agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments in which the buyer pays fixed periodic payments to the seller in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">consideration for a guarantee from the seller to make a specific pay-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment should a negative credit event take place (e.g., bankruptcy, failure</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to pay, obligation accelerators, repudiation, moratorium or restructur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing). Credit default swaps on traded indexes are agreements in which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the buyer pays fixed periodic payments to the seller in consideration</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for a guarantee from the seller to make a specific payment should a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">write-down, principal or interest shortfall or default of all or individual</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">underlying securities included in the index occurs. As a buyer, if an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">underlying credit event occurs, the Funds will either receive from the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seller an amount equal to the notional amount of the swap and deliver</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the referenced security or underlying securities comprising of an index</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or receive a net settlement of cash equal to the notional amount of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the swap less the recovery value of the security or underlying securi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties comprising of an index. As a seller (writer), if an underlying credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">event occurs the Funds will either pay the buyer an amount equal to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">notional amount of the swap and take delivery of the referenced secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rity or underlying securities comprising of an index or pay a net settle-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment of cash equal to the notional amount of the swap less the recovery</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the security or underlying securities comprising of an index.</FONT><BR>
<BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate swaps &#151; Certain Funds may enter into interest rate swaps</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to manage duration, the yield curve or interest rate risk by economically</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">hedging the value of the fixed rate bonds which may decrease when</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rates rise (interest rate risk). Interest rate swaps are agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in which one party pays a floating rate of interest on a notional princi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pal amount and receives a fixed rate of interest on the same notional</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">principal amount for a specified period of time. In more complex swaps,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the notional principal amount may decline (or amortize) over time.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=28%></TD>
     <TD width=27%></TD>
     <TD width=8%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Derivatives Categorized by Risk Exposure:</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=8 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Values of Derivative Instruments as of October 31, 2009*</FONT></B></TD>
</TR>
<TR>
	<TD colspan=8><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=center colspan=8 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Asset Derivatives</FONT></B></TD>
</TR>
<TR>
	<TD colspan=8><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Statements of Assets</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Liabilities Location</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate contracts**</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 94,972</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 34,845</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19,513</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 982,873</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized appreciation on swaps</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,930</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity contracts</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; unaffiliated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,110</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 94,972</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 34,845</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19,513</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 982,873</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11,040</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 51</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=20%></TD>
     <TD width=19%></TD>
     <TD width=3%></TD>
     <TD width=1%></TD>
     <TD width=6%></TD>
     <TD width=1%></TD>
     <TD width=7%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Derivatives Categorized by Risk Exposure (concluded):</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=13 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability Derivatives</FONT></B></TD>
</TR>
<TR>
	<TD colspan=13><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Statements of Assets</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Liabilities Location</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on foreign</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 650,963</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unrealized depreciation on swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 168,952</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 337,904</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 168,952</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 675,809</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">453,976</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity contracts**</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation/depreciation/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options written &#151; at value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">311,644</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,377,146</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 168,952</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 337,904</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 168,952</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 987,453</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,377,146</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,104,939</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">*</FONT>&nbsp;</TD>
	<TD align=right colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For open derivative instruments as of October 31, 2009, see the Schedules of Investments, which is also indicative of activity for the year ended October 31,
2009.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">**</FONT>&nbsp;</TD>
	<TD align=right colspan=12>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Includes cumulative appreciation/depreciation of the financial futures contracts as reported in Schedules of Investments. Only current day&#146;s margin variation is reported
within the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=13>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Effect of Derivative Instruments on the Statements of Operations</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=13 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended October 31, 2009</FONT></B></TD>
</TR>
<TR>
	<TD colspan=13><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=center colspan=13 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized Gain (Loss) From</FONT></B></TD>
</TR>
<TR>
	<TD colspan=13><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (3,986,014) &#36;(23,855,057) &#36;(11,138,251) &#36;(22,441,107)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,958,406</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,723,072</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,758,008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,501,084</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,366</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,450</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,348</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,785</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (2,429,013)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">246,932</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,208,482</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">464,385</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,004,951</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,014,281)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,193,721</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (617,742)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options***</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,769,225</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,938,361</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=7 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,776,310) &#36; (8,889,053) &#36; (3,914,510)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,037,659</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;52,320,619</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (3,443,294)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=13 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Change in Unrealized Appreciation/Depreciation on</FONT></B></TD>
</TR>
<TR>
	<TD colspan=13><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 584,149</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,572,427</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,716,894</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,820,983</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">248,398</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(911,039)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(503,217)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,216,856)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foreign currency exchange contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,287)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(32,964)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,062)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,689)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (6,893,115)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Swaps</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(305,030)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,014,054)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(307,150)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,086,163)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">371,495</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Equity contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(875,340)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options***</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,230,493</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,758,405</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(37,700)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 523,230</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,614,370</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 905,465</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,865,428</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,758,405</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (6,559,320)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">***</FONT>&nbsp;</TD>
	<TD align=right colspan=11>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">3. Investment Advisory Agreement and Other Transactions</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">with Affiliates:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The PNC Financial Services Group, Inc. (&#147;PNC&#148;) and Bank of America</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporation (&#147;BAC&#148;) are the largest stockholders of BlackRock, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;BlackRock&#148;). BAC became a stockholder of BlackRock following its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">acquisition of Merrill Lynch &amp; Co., Inc. (&#147;Merrill Lynch&#148;) on January 1,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009. Prior to that date, both PNC and Merrill Lynch were considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affiliates of the Funds under the 1940 Act. Subsequent to the acquisition,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PNC remains an affiliate, but due to the restructuring of Merrill Lynch&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ownership interest of BlackRock, BAC is not deemed to be an affiliate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">under the 1940 Act.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund entered into an Investment Advisory Agreement with BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advisors, LLC (the &#147;Manager&#148;), the Funds&#146; investment advisor, an indirect,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">wholly owned subsidiary of BlackRock, to provide investment advisory and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">administration services.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager is responsible for the management of each Fund&#146;s portfolio</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and provides the necessary personnel, facilities, equipment and certain</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other services necessary to the operations of the Funds. For such services,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Fund pays the Manager a monthly fee at the following annual rates of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Fund&#146;s average daily (weekly for BPP, BTZ and BGT) net assets (includ-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing any assets attributable to borrowings or the proceeds from the issuance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Preferred Shares) minus the sum of liabilities (other than borrowings</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">representing financial leverage) as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=48%></TD>
     <TD width=51%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.60%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.60%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.65%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.65%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.85%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.75%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has voluntarily agreed to waive a portion of the investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisory fees or other expenses on BGT as a percentage of its average weekly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net assets as follows: 0.20% for the first six years of the Fund&#146;s operations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(through August 30, 2010), 0.10% in year seven (through August 30, 2011)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and 0.05% in year eight (through August 30, 2012). For the year ended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2009, the Manager waived &#36;706,594, which is included in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees waived by advisor in the Statements of Operations.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">52 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_55"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=49%></TD>
     <TD width=26%></TD>
     <TD width=24%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has voluntarily agreed to waive its advisory fees by the amount</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of investment advisory fees each Fund pays to the Manager indirectly through</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its investment in affiliated money market funds. These amounts are included</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in fees waived by advisor in the Statements of Operations as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,003</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,491</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;21,506</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;95,646</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,172</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,448</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has entered into a separate sub-advisory agreement with</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Financial Management, Inc. (&#147;BFM&#148;), an affiliate of the Manager,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with respect to PSW, PSY, BPP, BTZ and BGT. BFM and BlackRock Invest-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment Management, LLC (&#147;BIM&#148;), an affiliate of the Manager, serve as sub-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisors for CII. The Manager pays the sub-advisors for services they pro-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">vide, a monthly fee that is a percentage of the investment advisory fees</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">paid by each Fund to the Manager.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended October 31, 2009, the Funds reimbursed the Manager for</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain accounting services, which are included in accounting services in</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Statements of Operations. The reimbursements were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Services</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,913</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,364</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,214</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,113</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11,054</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,510</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated (&#147;MLPF&amp;S&#148;), a wholly</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">owned subsidiary of Merrill Lynch, for the period November 1, 2008 to</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">December 31, 2008 (after which time Merrill Lynch was no longer consid-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ered an affiliate), earned commissions on transactions of securities</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,223</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,748</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain officers and/or directors or trustees of the Funds are officers</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and/or directors of BlackRock or its affiliates. The Funds reimburse the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Manager for compensation paid to the Funds&#146; Chief Compliance Officer.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">4. Investments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Purchases and sales of investments, including paydowns, excluding short-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">term securities and US government securities, for the year ended October 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchases</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sales</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,909,061</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 103,719,933</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,975,856</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 375,248,172</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 34,574,885</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 194,230,481</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 186,459,982</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 541,219,389</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 747,473,597</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 737,185,021</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 157,239,797</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 250,200,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended October 31, 2009, purchases and sales of US govern-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment securities were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=37%></TD>
     <TD width=14%></TD>
     <TD width=17%></TD>
     <TD width=12%></TD>
     <TD width=1%></TD>
     <TD width=16%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchases</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sales</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 494,173</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 482,813</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transactions in options written for the year ended October 31, 2009 for</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ and CII were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Premiums</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Premiums</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Call Options Written</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Received Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Received</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Outstanding options written,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">beginning of year</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,556,037</FONT>&nbsp;</TD>
	<TD align=right colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,225 &#36; 3,449,258</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options written</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,565,145</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">696,648</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">122,618,221</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options exercised</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(247,949)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(19,106,119)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options expired</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,905)</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,347,543) (182,483)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,102,291)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options closed</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,595)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31,945,600) (150,354)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(76,665,610)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Outstanding options written,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end of year</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;828,039</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">117,087</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;9,193,459</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Premiums</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Put Options Written</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Contracts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Received</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Outstanding options written, beginning of year</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options written</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,350 &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80,744</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Options exercised</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,350)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(80,744)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Outstanding options written, end of year</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">5. Commitments:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT invests in floating rate loans. In connection with these investments,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund may, with its Manager, also enter into unfunded corporate loans</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;commitments&#148;). Commitments may obligate the Fund to furnish temporary</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financing to a borrower until permanent financing can be arranged. In con-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nection with these commitments, the Fund earns a commitment fee, typi-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cally set as a percentage of the commitment amount. Such fee income,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which is classified in the Statements of Operations as facility and other</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees, is recognized ratably over the commitment period. As of October 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, the Fund had the following unfunded loan commitments:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value of</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Underlying</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Underlying</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commitment</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Loan</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Delphi Acquisition Holding IBV</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;368</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;306</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NVT Networks LLC Exit Term Loan</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 51</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smurfit-Stone Container Enterprises, Inc.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Term Loan Debtor in Possession</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;910</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">6. Concentration, Market and Credit Risk:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY, BPP and BTZ invest a significant portion of their assets in securities</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the financials sector and BGT invests a significant portion of its assets</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in securities in the media sector. Please see the Schedules of Investments</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for these securities. Changes in economic conditions affecting the finan-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cials and media sectors would have a greater impact on the respective</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds and could affect the value, income and/or liquidity of positions in</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such securities.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In the normal course of business, the Funds invest in securities and enter</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">into transactions where risks exist due to fluctuations in the market (market</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk) or failure of the issuer of a security to meet all its obligations (credit</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk). The value of securities held by the Funds may decline in response to</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 53</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_56"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain events, including those directly involving the issuers whose securi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties are owned by the Funds; conditions affecting the general economy;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">overall market changes; local, regional or global political, social or eco-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nomic instability; and currency and interest rate and price fluctuations.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Similar to credit risk, the Funds may be exposed to counterparty risk, or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the risk that an entity with which the Funds have unsettled or open trans-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">actions may default. Financial assets, which potentially expose the Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to credit and counterparty risks, consist principally of investments and cash</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">due from counterparties. The extent of the Funds&#146; exposure to credit and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">counterparty risks with respect to those financial assets is approximated by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their value recorded in the Funds&#146; Statements of Assets and Liabilities, less</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any collateral held by the Funds.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">7. Capital Share Transactions:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW, PSY and CII are authorized to issue 200 million of &#36;0.10 par value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares, all of which initially were classified as Common Shares. The Boards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of PSW and PSY are authorized to classify and reclassify any unissued</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares. In this regard, the Boards of PSW and PSY have reclassified 5,460</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and 22,000 shares, respectively, of unissued shares as Preferred Shares.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">There are an unlimited number of &#36;0.001 par value shares authorized for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP, BTZ and BGT.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=41%></TD>
     <TD width=24%></TD>
     <TD width=15%></TD>
     <TD width=17%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Common Shares</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At October 31, 2009, the shares owned by an affiliate of the Manager of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,656</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,927</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,817</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,362</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,239</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issued and outstanding during the years ended October 31, 2009</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and October 31, 2008 for PSW and PSY and the year ended October 31,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, the period January 1, 2008 to October 31, 2008 and the year ended</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">December 31, 2007 for BPP, CII and BGT increased by the following</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amounts as a result of dividend reinvestment:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">December 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,060</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">N/A</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200,878</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">N/A</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76,154</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,794</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,981</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">221,870</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,574</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issued and outstanding remained constant for BTZ for the years</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended October 31, 2009 and October 31, 2008.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended October 31, 2009, shares issued and outstanding for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII increased 30,542,706 as a result of a reorganization as discussed in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Note 1 &#147;CII Reorganization&#148;.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Preferred Shares</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Preferred Shares are redeemable at the option of each Fund, in whole</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or in part, on any dividend payment date at &#36;25,000 per share plus any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accumulated or unpaid dividends whether or not declared. The Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares are also subject to mandatory redemption at their liquidation pref-</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">erence plus any accumulated or unpaid dividends, whether or not declared,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">if certain requirements relating to the composition of the assets and liabili-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties of the Fund, as set forth in the Fund&#146;s Statement of Preferences/Articles</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Supplementary (&#147;Governing Instrument&#148;), as applicable, are not satisfied.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">From time to time in the future, the Funds that have issued Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares may effect repurchases of such shares at prices below their liquida-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion preferences as agreed upon by the Funds and seller. The Funds also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may redeem such shares from time to time as provided in the applicable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Governing Instrument. The Funds intend to effect such redemptions and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">repurchases to the extent necessary to maintain applicable asset coverage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">requirements or for such other reasons as the Board may determine.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The holders of Preferred Shares have voting rights equal to the holders of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares (one vote per share) and will vote together with holders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Common Shares (one vote per share) as a single class. However, holders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Preferred Shares, voting as a separate class, are also entitled to elect</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">two Directors/Trustees for each Fund. In addition, the 1940 Act requires</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that along with approval by shareholders that might otherwise be required,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the approval of the holders of a majority of any outstanding Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares, voting separately as a class would be required to (a) adopt any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">plan of reorganization that would adversely affect the Preferred Shares,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) change a Fund&#146;s subclassification as a closed-end investment com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pany or change its fundamental investment restrictions or (c) change its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">business so as to cease to be an investment company.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=20%></TD>
     <TD width=26%></TD>
     <TD width=19%></TD>
     <TD width=18%></TD>
     <TD width=15%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW, PSY, BPP, BTZ and BGT had the following series of Preferred Shares</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">outstanding, effective yields and reset frequency as of October 31, 2009:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Reset</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Effective</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frequency</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Yield</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Days</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">805</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">805</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">861</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">861</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">861</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">861</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">861</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,228</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.49%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,228</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.49%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.24%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.24%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.26%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,310</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,310</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,310</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,310</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">784</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">784</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">784</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends on seven-day and 28-day Preferred Shares are cumulative at a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate that is reset every seven or 28 days, respectively, based on the results</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of an auction. If the Preferred Shares fail to clear the auction on an auction</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date, the affected Fund is required to pay the maximum applicable rate on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Preferred Shares to holders of such shares for successive dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">periods until such time as the shares are successfully auctioned. The maxi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mum applicable rate on Preferred Shares are as follows: for PSW, PSY and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT, the higher of 125% times or 1.25% plus the Telerate/BBA LIBOR rate;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for BPP 150% of the interest equivalent of the 30-day commercial paper</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate and for BTZ, the higher of 150% times or 1.25% plus the Telerate/BBA</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">54 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<TR valign="bottom">
	<TD align=left colspan=5>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LIBOR rate. The low, high and average dividend rates for the year ended</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2009, were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Average</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.39%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.34%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.63%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.39%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.63%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.34%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.63%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.27%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.63%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.89%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.57%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W28</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.49%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.53%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.70%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH28</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.49%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.76%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.84%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.23%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.21%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.24%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.07%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.60%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.20%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.09%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.59%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.34%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.63%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.27%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.66%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.89%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.65%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.57%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.34%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.27%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.66%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.89%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since February 13, 2008, the Preferred Shares of the Funds failed to clear</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any of their auctions. As a result, the Preferred Shares dividend rates were</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reset to the maximum applicable rate, which ranged from 0.20% to 5.76%.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A failed auction is not an event of default for the Funds but it has a nega-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive impact on the liquidity of Preferred Shares. A failed auction occurs</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">when there are more sellers of a fund&#146;s auction rate preferred shares than</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">buyers. It is impossible to predict how long this imbalance will last. A suc-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cessful auction for the Funds&#146; Preferred Shares may not occur for some time,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">if ever, and even if liquidity does resume, Preferred Shareholders may not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">have the ability to sell the Preferred Shares at their liquidation preference.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds may not declare dividends or make other distributions on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares or purchase any such shares if, at the time of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declaration, distribution or purchase, asset coverage with respect to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">outstanding Preferred Shares is less than 200%.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prior to December 22, 2008, the Funds paid commissions to certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">broker-dealers at the end of each auction at an annual rate of 0.25%,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">calculated on the aggregate principal amount. On December 22, 2008,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commissions paid to broker-dealers on Preferred Shares that experience a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">failed auction were reduced to 0.15% on the aggregate principal amount.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subsequently, certain broker-dealers have individually agreed to further</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reduce commissions for failed auctions. The Funds will continue to pay</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commissions of 0.25% on the aggregate principal amount of all shares</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that successfully clear their auctions. MLPF&amp;S earned commissions for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period November 1, 2008 to December 31, 2008 (after which time Merrill</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lynch was no longer considered an affiliate) as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=54%></TD>
     <TD width=45%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commissions</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;42,997</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13,434</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;41,221</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 683</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the year ended October 31, 2009 the Funds announced the follow-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing redemptions, as of the date indicated, of Preferred Shares at a price of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,000 per share plus any accrued and unpaid dividends through the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">redemption dates:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=27%></TD>
     <TD width=14%></TD>
     <TD width=20%></TD>
     <TD width=18%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">March 26, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redemption</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aggregate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redeemed</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/14/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/15/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/13/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/13/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/07/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">153</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,825,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/24/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">153</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,825,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/15/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">267</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">267</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/17/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">267</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">February 24, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redemption</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aggregate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redeemed</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/17/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/18/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/17/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,075,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/18/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,075,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/19/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,075,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/13/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,075,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/16/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">203</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,075,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/09/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">292</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,300,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/27/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">292</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,300,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">November 25, 2008</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redemption</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aggregate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redeemed</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/16/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/17/08</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/16/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,725,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/17/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,725,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/18/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,725,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/12/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,725,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/15/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,725,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/18/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">327</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,175,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/02/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">327</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,175,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/17/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">266</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,650,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/18/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">266</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,650,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/19/08</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">266</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,650,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the period ended October 31, 2008, the Funds announced the fol-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lowing redemptions as of May 19, 2008 of Preferred Shares at a price of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,000 per share plus any accrued and unpaid dividends through the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">redemption date:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redemption</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aggregate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redeemed</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/10/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,365</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;34,125,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/11/2008</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,365</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;34,125,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/10/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;35,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/11/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;35,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/05/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;35,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/06/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;35,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/09/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;35,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/05/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;50,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/20/2008</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;50,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/11/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,472</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;36,800,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/12/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,472</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;36,800,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/13/2008</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,472</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;36,800,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/11/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,310</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;57,750,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/12/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,310</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;57,750,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/13/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,310</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;57,750,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/09/2008</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,310</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;57,750,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/11/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,462</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;61,550,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/12/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,462</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;61,550,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/13/2008</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,462</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;61,550,000</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 55</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_58"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">All of the Funds, except BGT, financed the Preferred Share redemptions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with cash received from reverse repurchase agreements. BGT financed the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Share redemptions with cash received from a loan.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares issued and outstanding for the year ended December 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007 for BGT and BPP remained constant.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">8. Borrowings:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On May 16, 2008, BGT renewed its revolving credit and security Agreement</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;Citicorp Agreement&#148;) pursuant to a commercial paper asset securitization</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">program with Citicorp North America, Inc. (&#147;Citicorp&#148;), as Agent, certain sec</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ondary backstop lenders and certain asset securitization conduits, as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lenders (the &#147;Lenders&#148;). The agreement was renewed for one year and at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the time of renewal had a maximum limit of &#36;190 million.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the Citicorp Agreement, the conduits funded advances to the Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">through the issuance of highly rated commercial paper. The Fund had</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">granted a security interest in substantially all of its assets to, and in favor</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of, the Lenders as security for its obligations to the Lenders. The interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate on the Fund&#146;s borrowings was based on the interest rate carried by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commercial paper plus a program fee. Effective December 5, 2008, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund renegotiated certain terms of the Citicorp Agreement and reduced</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the commitment amount to &#36;134 million.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On March 5, 2009, BGT terminated its revolving credit agreement with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Citicorp and entered into a senior committed secured, 364-day revolving</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">line of credit and a separate security agreement with State Street Bank</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trust Company (&#147;SSB&#148;). The SSB line of credit provides the Fund with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a maximum commitment of &#36;134 million. The Fund has granted a security</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest in substantially all of its assets to SSB.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advances are made by SSB to BGT at BGT&#146;s option at either (a) the higher</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of 1.00% above the Fed Effective Rate or 1.00% above the Overnight LIBOR</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate and (b) 1.00% above 7-day, 30-day, or 60-day LIBOR Rate. In addi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion, BGT pays a facility fee and a commitment fee based upon SSB&#146;s total</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commitment to BGT. The fees associated with each of the agreements are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">included in the Statements of Operations as borrowing costs. Advances to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT as of October 31, 2009 are shown in the Statements of Assets and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Liabilities as loan payable. For the year ended October 31, 2009, the daily</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">weighted average interest rate was 2.15%.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the Investment Company Act of 1940, BGT may not declare divi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dends or make other distributions on Common Shares if, at the time of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declaration, distribution or purchase, asset coverage with respect to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">outstanding indebtedness is less than 300%.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended October 31, 2009, the daily weighted average interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates for Funds with reverse repurchase agreements were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=48%></TD>
     <TD width=51%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.93%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.38%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.33%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">9. Income Tax Information:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Reclassifications: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting principles generally accepted in the United States of America require
that certain components of net assets be adjusted to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">following permanent differences as of October 31, 2009 attributable to accounting for swap agreements, the classification of investments, foreign currency</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions and non-deductible expenses were reclassified to the following accounts:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=17%></TD>
     <TD width=20%></TD>
     <TD width=12%></TD>
     <TD width=10%></TD>
     <TD width=9%></TD>
     <TD width=10%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (3,858)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (7,879)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed (distributions in excess of) net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (254,371)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,436,139)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (3,866,202)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,415,793)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,879</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (3,185,823)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accumulated net realized loss</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 254,371</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,439,997</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,866,202</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,415,793</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,185,823</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The tax character of distributions paid during the periods ended October 31, 2009 and 2008 for all Funds and December 31, 2007 for BPP, CII and BGT</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ordinary income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,272,893</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 48,928,499</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,039,320</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 52,227,765</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 52,962,484</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,934,349</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,443,001</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 66,768,898</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,860,160</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,957,649</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,846,070</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,676,182</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/2007</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,678,314</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,911,539</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 39,557,202</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-term capital gains</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,276,199</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,596,353</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/2007</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 400,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,835,961</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax return of capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,345,345</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 116,310</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,250,036</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,678,883</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19,660,314</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,994,857</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 545,246</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,002,427</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,480,035</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 43,518,226</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,292,188</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/2007</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,820,986</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,473,282</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total distributions</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,618,238</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,044,809</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22,289,356</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 76,906,648</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 82,898,997</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 38,929,206</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10/31/2008</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,988,247</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 75,771,325</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26,340,195</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 107,475,875</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,734,611</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,676,182</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/2007</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 43,899,300</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,747,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 48,030,484</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">56</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_59"></A>

<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=9%></TD>
     <TD width=10%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As of October 31, 2009, the tax components of accumulated net losses were as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital loss carryforwards</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(127,842,748)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(447,757,170)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(185,378,942)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(387,036,152)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(106,212,859)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (73,270,778)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized losses*</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(13,773,056)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(85,650,823)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,137,626)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(95,975,896)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(83,448,589)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(41,417,420)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(141,615,804)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(533,407,993)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(219,516,568)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(483,012,048)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(189,661,448)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(114,688,198)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The differences between book-basis and tax-basis net unrealized losses were attributable primarily to the tax deferral of losses on wash sales, the amortization methods for
premi-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ums and discounts on fixed income securities, the accrual of income on securities in default, the realization for tax purposes of unrealized
gains/(losses) on certain futures and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=8>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">foreign currency contracts, the timing and recognition of partnership income, the accounting for swap agreements, the deferral of compensation to trustees and directors, the
classi-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fication of investments and other temporary differences.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=8>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As of October 31, 2009, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expires October 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2011</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,276,621</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2012</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,243,141</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 62,733,648</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2013</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,058,900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,911,331</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,481,628</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,145,117</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2015</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,724,694</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,582,978</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,184,893</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,741,712</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,268,804</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2016</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,232,230</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140,413,242</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,197,929</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">113,355,213</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 26,706,998</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,616,531</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2017</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55,825,534</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">194,970,854</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">108,996,120</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">223,939,227</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79,505,861</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,385,443</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 127,842,748</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 447,757,170</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 185,378,942</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 387,036,152</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 106,212,859</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,270,778</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">10. Subsequent Events:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management&#146;s evaluation of the impact of all subsequent events on the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds&#146; financial statements was completed through December 28, 2009,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the date the financial statements were issued.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds paid net investment income dividends on November 30, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to shareholders of record on November 13, 2009 as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividend</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0600</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0750</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0725</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.1000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0675</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The dividends declared on Preferred Shares for the period November 1,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 through November 30, 2009 were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Declared</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,880</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,790</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,541</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,445</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,452</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,446</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;25,573</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;36,859</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TH28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;36,888</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,435</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,317</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,431</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;68,268</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;68,285</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;68,497</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;68,228</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,175</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,172</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R7</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,175</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
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	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">57</FONT>&nbsp;</TD>
</TR>
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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Report of Independent Registered Public Accounting Firm</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">To the Shareholders and Board of Trustees/Directors of:</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust I, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust II, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust III</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust IV</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Blackrock Enhanced Capital and Income Fund, Inc., and</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Floating Rate Income Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">(Collectively the &#147;Trusts&#148;):</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We have audited the accompanying statements of assets and liabilities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BlackRock Credit Allocation Income Trust I, Inc. (formerly BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred and Corporate Income Strategies Fund, Inc.) and BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Allocation Income Trust II, Inc. (formerly BlackRock Preferred Income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Strategies Fund, Inc.), including the schedules of investments, as of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2009, and the related statements of operations for the year</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then ended, the statements of changes in net assets for each of the two</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">years in the period then ended, and the financial highlights for each of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the four years in the period then ended. We have also audited the accom-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">panying statement of assets and liabilities of BlackRock Credit Allocation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income Trust III (formerly BlackRock Preferred Opportunity Trust), including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the schedule of investments, as of October 31, 2009, and the related</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">statement of operations for the year then ended, the statements of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">changes in net assets for the year then ended, for the period January 1,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008 to October 31, 2008, and for the year ended December 31, 2007,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the financial highlights for the year ended October 31, 2009, for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period January 1, 2008 to October 31, 2008, and for each of the four</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">years in the period ended December 31, 2007. We have also audited the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accompanying statement of assets and liabilities of BlackRock Credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allocation Income Trust IV (formerly BlackRock Preferred and Equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advantage Trust), including the schedule of investments, as of October 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, and the related statements of operations for the year then ended,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the statements of changes in net assets for each of the two years in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period then ended, and the financial highlights for each of the two years</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the period ended October 31, 2009, and for the period December 27,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2006 (commencement of operations) to October 31, 2007. We have also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">audited the accompanying statement of assets and liabilities of BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Enhanced Capital and Income Fund, Inc., including the schedule of invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, as of October 31, 2009, and the related statement of operations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the year then ended, the statements of changes in net assets for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year then ended, for the period January 1, 2008 to October 31, 2008, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the year ended December 31, 2007, and the financial highlights for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year ended October 31, 2009, for the period January 1, 2008 to October</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31, 2008, for each of the three years in the period ended December 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007, and for the period April 30, 2004 (commencement of operations) to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">December 31, 2004. We have also audited the accompanying statements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of assets and liabilities of BlackRock Floating Rate Income Trust (formerly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Global Floating Rate Income Trust), including the schedule of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments, as of October 31, 2009, and the related statement of opera-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions and cash flows for the year then ended, the statements of changes</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in net assets for the year then ended, for the period January 1, 2008 to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2008, and for the year ended December 31, 2007, and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial highlights for the year ended October 31, 2009, for the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January 1, 2008 to October 31, 2008, for each of the three years in the</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period ended December 31, 2007, and for the period August 30, 2004</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(commencement of operations) to December 31, 2004. These financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">statements and financial highlights are the responsibility of the Trusts&#146; man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agement. Our responsibility is to express an opinion on these financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">statements and financial highlights based on our audits. The financial high-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lights of BlackRock Credit Allocation Income Trust I, Inc. and BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Allocation Income Trust II, Inc., for the year ended October 31, 2005</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were audited by other auditors whose report, dated December 9, 2005,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expressed an unqualified opinion on those financial highlights.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We conducted our audits in accordance with the standards of the Public</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company Accounting Oversight Board (United States). Those standards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require that we plan and perform the audit to obtain reasonable assurance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about whether the financial statements and financial highlights are free of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">material misstatement. The Trusts are not required to have, nor were we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">engaged to perform an audit of their internal control over financial report-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing. Our audits included consideration of internal control over financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reporting as a basis for designing audit procedures that are appropriate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the circumstances, but not for the purpose of expressing an opinion</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the effectiveness of the Trusts&#146; internal control over financial reporting.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accordingly, we express no such opinion. An audit also includes examining,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on a test basis, evidence supporting the amounts and disclosures in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements, assessing the accounting principles used and signifi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cant estimates made by management, as well as evaluating the overall</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statement presentation. Our procedures include confirmation of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the securities owned as of October 31, 2009, by correspondence with the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">custodian and financial intermediaries; where replies were not received</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from financial intermediaries, we performed other auditing procedures. We</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">believe that our audits provide a reasonable basis for our opinion.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In our opinion, the financial statements and financial highlights referred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to above present fairly, in all material respects, the financial position of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust I, Inc. and BlackRock Credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allocation Income Trust II, Inc., the results of their operations for the year</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then ended, the changes in their net assets for each of the two years in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the period then ended, and the financial highlights for each of the four</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">years in the period then ended, in conformity with accounting principles</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">generally accepted in the United States of America. Additionally, in our</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">opinion, the financial statements and financial highlights referred to above</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">present fairly, in all material respects, the financial position of BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Allocation Income Trust III, the results of its operations for the year</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then ended, the changes in its net assets for the year then ended,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the period January 1, 2008 to October 31, 2008, and for the year</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended December 31, 2007, and the financial highlights for the year ended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2009, for the period January 1, 2008 to October 31, 2008,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and for each of the four years in the period ended December 31, 2007,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in conformity with accounting principles generally accepted in the United</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">States of America. Additionally, in our opinion, the financial statements and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial highlights referred to above present fairly, in all material respects,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the financial position of BlackRock Credit Allocation Income Trust IV, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">results of its operations for the year then ended, the changes in its net assets</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for each of the two years in the period then ended, and the financial high-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lights for each of the two years in the period then ended, and for the period</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">58 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Report of Independent Registered Public Accounting Firm (concluded)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">December 27, 2006 (commencement of operations) to October 31, 2007,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in conformity with accounting principles generally accepted in the United</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">States of America. Additionally, in our opinion, the financial statements and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial highlights referred to above present fairly, in all material respects,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the financial position of BlackRock Enhanced Capital and Income Fund,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc., the results of its operations for the year then ended, the changes in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its net assets for the year then ended, for the period January 1, 2008 to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2008, and for the year ended December 31, 2007, and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial highlights for the year ended October 31, 2009, for the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January 1, 2008 to October 31, 2008, for each of the three years in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period ended December 31, 2007, and for the period April 30, 2004</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(commencement of operations) to December 31, 2004, in conformity with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounting principles generally accepted in the United States of America.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additionally, in our opinion, the financial statements and financial highlights</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">referred to above present fairly, in all material respects, the financial position</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BlackRock Floating Rate Income Trust, the results of its operations and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its cash flows for the year then ended, the changes in its net assets for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year then ended, for the period January 1, 2008 to October 31, 2008, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the year ended December 31, 2007, and the financial highlights for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year ended October 31, 2009, for the period January 1, 2008 to October</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31, 2008, for each of the three years in the period ended December 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007, and for the period August 30, 2004 (commencement of operations)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to December 31, 2004, in conformity with accounting principles generally</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accepted in the United States of America.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deloitte &amp; Touche LLP</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, New Jersey</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">December 28, 2009</FONT></P>
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 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Important Tax Information (Unaudited)</FONT></B>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following information is provided with respect to the ordinary income distributions paid by the Funds for the taxable year ended</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2009:</FONT>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSY</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BPP</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BTZ</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Qualified Dividend Income for Individuals*</FONT></B>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Months Paid:</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">November &#150; December 2008&#134;</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28.71%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32.86%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43.81%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38.14%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27.56%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January &#150; October 2009</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28.16%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23.53%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55.05%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63.22%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33.97%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends Received Deductions for Corporations*</FONT></B>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Months Paid:</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">November &#150; December 2008&#134;</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.15%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17.08%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.42%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.49%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26.00%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January &#150; October 2009</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.43%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.78%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17.49%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37.17%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31.13%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest-Related Dividends and Qualified Short-Term Capital Gains</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">for Non-U.S. Residents**</FONT></B>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Months Paid:</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">November &#150; December 2008&#134;</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51.30%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55.03%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41.66%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29.12%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46.19%</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">January &#150; October 2009</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61.37%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63.14%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53.10%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54.52%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
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 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The Funds hereby designate the percentage indicated above or the maximum amount allowable by law.</FONT>&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">** Represents the portion of taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign
corporations.</FONT>&nbsp;</TD>
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&nbsp;</TD>
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 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#134; Includes dividend paid on January 9, 2009 to PSW, PSY, BPP, BTZ, and BGT Common Shareholders.</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additionally, of the CII distributions paid between March and September 2009, 16.53% represented long-term capital gains.</FONT>&nbsp;</TD>
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&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">59</FONT>&nbsp;</TD>
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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of Directors or the Board of Trustees, as the case may be, (each,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a &#147;Board&#148; and, collectively, the &#147;Boards,&#148; and the members of which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">referred to as &#147;Board Members&#148;) of each of BlackRock Credit Allocation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income Trust I, Inc. (formerly BlackRock Preferred and Corporate Income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Strategies Fund, Inc.) (&#147;PSW&#148;), BlackRock Credit Allocation Income Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">II, Inc. (formerly BlackRock Preferred Income Strategies Fund, Inc.) (&#147;PSY&#148;),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust III (formerly BlackRock Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Opportunity Trust) (&#147;BPP&#148;), BlackRock Credit Allocation Income Trust IV (for-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">merly BlackRock Preferred and Equity Advantage Trust) (&#147;BTZ&#148;), BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Enhanced Capital and Income Fund, Inc. (&#147;CII&#148;) and BlackRock Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate Income Trust (&#147;BGT,&#148; and together with PSW, PSY, BPP, BTZ, and CII,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each a &#147;Fund&#148; and, collectively, the &#147;Funds&#148;) met on April 14, 2009,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">May 28 &#150; 29, 2009 and August 25 &#150; 26, 2009 to consider the approval</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of its respective Fund&#146;s investment advisory agreement (each, an &#147;Advisory</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreement&#148;) with BlackRock Advisors, LLC (the &#147;Manager&#148;), each Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisor. The Board of each of PSW, PSY, BPP, BTZ, CII and BGT</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">also considered the approval of a sub-advisory agreement (each, a &#147;Sub-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advisory Agreement&#148;) among its respective Fund, the Manager and one</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or both of the following sub-advisors, as the case may be: BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Management, Inc.; and BlackRock Investment Management, LLC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(each, a &#147;Sub-Advisor&#148;). The Manager and the Sub-Advisors are referred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to herein as &#147;BlackRock.&#148; The Advisory Agreements and the Sub-Advisory</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agreements are referred to herein as the &#147;Agreements.&#148; Unless otherwise</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">indicated, references to actions taken by the &#147;Board&#148; or the &#147;Boards&#148; shall</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mean each Board acting independently with respect to its Fund.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Activities and Composition of the Boards</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board consists of twelve individuals, ten of whom are not &#147;interested</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">persons&#148; of the Funds as defined in the Investment Company Act of 1940,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as amended (the &#147;1940 Act&#148;) (the &#147;Independent Board Members&#148;). The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Members of each Fund are responsible for the oversight of the oper-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ations of such Fund and perform the various duties imposed on the direc-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tors of investment companies by the 1940 Act. The Independent Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members have retained independent legal counsel to assist them in con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nection with their duties. The Chairman of each Board is an Independent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Member. Each Board has established five standing committees: an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Audit Committee, a Governance and Nominating Committee, a Compliance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee, a Performance Oversight Committee and an Executive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee, each of which is composed of Independent Board Members</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(except for the Executive Committee, which has one interested Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member) and is chaired by an Independent Board Member. In addition,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Boards of certain of the Funds have established an Ad Hoc Committee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on Auction Market Preferred Shares.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">The Agreements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pursuant to the 1940 Act, each Board is required to consider the continuation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Agreements on an annual basis. In connection with this process, each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board assessed, among other things, the nature, scope and quality of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services provided to its respective Fund by the personnel of BlackRock and its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affiliates, including investment management, administrative and shareholder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services, oversight of fund accounting and custody, marketing services and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assistance in meeting applicable legal and regulatory requirements.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Throughout the year, the Boards, acting directly and through their commit-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tees, consider at each of their meetings factors that are relevant to their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">annual consideration of the renewal of the Agreements, including the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services and support provided by BlackRock to the Funds and their share-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holders. Among the matters the Boards considered were: (a) investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance for one-, three- and five-year periods, as applicable, against</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">peer funds, and applicable benchmarks, if any, as well as senior manage-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment and portfolio managers&#146; analysis of the reasons for any out perform-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance or underperformance against its peers; (b) fees, including advisory</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and other amounts paid to BlackRock and its affiliates by the Funds for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services such as call center and fund accounting; (c) the Funds&#146; operating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses; (d) the resources devoted to, and compliance reports relating to,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds&#146; investment objectives, policies and restrictions; (e) the Funds&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">compliance with their Code of Ethics and compliance policies and proce-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dures; (f) the nature, cost and character of non-investment management</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services provided by BlackRock and its affiliates; (g) BlackRock&#146;s and other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">service providers&#146; internal controls; (h) BlackRock&#146;s implementation of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">proxy voting policies approved by the Board; (i) execution quality of port-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">folio transactions and, as applicable, the use of brokerage commissions;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) BlackRock&#146;s implementation of the Funds&#146; valuation and liquidity proce-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dures; and (k) periodic updates on BlackRock&#146;s business.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Board Considerations in Approving the Agreements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">The Approval Process: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prior to the April 14, 2009 meeting, each Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">requested and received materials specifically relating to the Agreements.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board is engaged in an ongoing process with BlackRock to continu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ously review the nature and scope of the information provided to better</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assist their deliberations. The materials provided in connection with the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">April meeting included (a) information independently compiled and pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pared by Lipper, Inc. (&#147;Lipper&#148;) on Fund fees and expenses, and the invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment performance of each Fund as compared with a peer group of funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as determined by Lipper and, where applicable, a customized peer group</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">selected by BlackRock (collectively, &#147;Peers&#148;); (b) information on the profit-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ability of the Agreements to BlackRock and a discussion of fall-out benefits</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to BlackRock and its affiliates and significant shareholders; (c) a general</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">analysis provided by BlackRock concerning investment advisory fees charged</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to other clients, such as institutional clients and open-end funds, under</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar investment mandates, as well as the performance of such other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">clients; (d) the impact of economies of scale; (e) a summary of aggregate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amounts paid by each Fund to BlackRock; and (f) an internal comparison</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of management fees classified by Lipper, if applicable.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At an in-person meeting held on April 14, 2009, each Board reviewed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">materials relating to its consideration of the Agreements. As a result of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">discussions that occurred during the April 14, 2009 meeting, the Boards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">presented BlackRock with questions and requests for additional informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion and BlackRock responded to these requests with additional written</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information in advance of the May 28 &#150; 29, 2009 Board meeting.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At an in-person meeting held on May 28 &#150; 29, 2009, the Boards of each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BGT, BPP, BTZ and CII, including the Independent Board Members, unani-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mously approved the continuation of the Advisory Agreement between the</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">60 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Manager and such Fund and the Sub-Advisory Agreement among such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund, the Manager and the Sub-Advisor(s), as applicable, each for a one-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year term ending June 30, 2010. The Boards considered all factors they</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">believed relevant with respect to the Funds, including, among other factors:</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) the nature, extent and quality of the services provided by BlackRock;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) the investment performance of the Fund and BlackRock portfolio man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agement; (c) the advisory fee and the cost of the services and profits to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be realized by BlackRock and certain affiliates from their relationship with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund; (d) economies of scale; and (e) other factors.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board also considered other matters it deemed important to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approval process, such as services related to the valuation and pricing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of its respective Fund&#146;s portfolio holdings, direct and indirect benefits to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock and its affiliates and significant shareholders from their relation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ship with such Fund and advice from independent legal counsel with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respect to the review process and materials submitted for the Board&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">review. The Boards noted the willingness of BlackRock personnel to engage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in open, candid discussions with the Boards. The Boards did not identify</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any particular information as controlling, and each Board Member may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">have attributed different weights to the various items considered.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At the in-person meeting held on May 28 &#150; 29, 2009, the Boards of each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of PSY and PSW held extended discussions of the long- and short-term</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance of PSY and PSW and the future prospects for the investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies of such Funds with respect to investing in primarily preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">stocks. At such meeting, the Boards of each of PSY and PSW approved</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the continuation of the Advisory Agreement between the Manager and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each such Fund and the Sub-Advisory Agreement among such Fund, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Manager and the Sub-Advisor(s) on an interim basis for a three-month</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period ended September 30, 2009. In taking such action, the Boards of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each of PSY and PSW noted that the interim approval of the Agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">was intended to allow and encourage BlackRock to explore various alter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">natives for the future management of PSY and PSW, and to report back to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Boards with recommendations at the Boards&#146; next regularly scheduled</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in-person meetings.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At an in-person meeting of the Boards of each of PSY and PSW on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 25 &#150; 26, 2009, BlackRock recommended changing certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment policies of PSY and PSW by removing their non-fundamental</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment policies requiring that they invest at least 80% of their respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive assets in preferred securities and adopting a new non-fundamental</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policy requiring that PSY and PSW invest at least 80% of their respective</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total assets in credit-related securities, including, but not limited to,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment grade corporate bonds, high yield bonds, bank loans, preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities or convertible bonds or derivatives with economic characteristics</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar to these credit-related securities. As a result of these investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policy amendments, PSY and PSW were proposed to be renamed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Credit Allocation Income Trust I, Inc. and BlackRock Credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allocation Income Trust II, Inc., respectively, to reflect their new</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">portfolio characteristics.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">After considering BlackRock&#146;s proposed changes for PSY and PSW and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">recalling their deliberations with respect to PSY and PSW at the April</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and May Board meetings, the Board of each such Fund, including the</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Independent Board Members, unanimously approved the continuation of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Advisory Agreement between the Manager and such Fund and the Sub-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advisory Agreement among such Fund, the Manager and the Sub-Advisor(s),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each for a nine-month term ending June 30, 2010.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">A. Nature, Extent and Quality of the Services: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Independent Board Members, reviewed the nature, extent and quality of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services provided by BlackRock, including the investment advisory services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the resulting performance of its respective Fund. Throughout the year,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Board compared its respective Fund&#146;s performance to the perform-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance of a comparable group of closed-end funds, and the performance of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a relevant benchmark, if any. The Boards met with BlackRock&#146;s senior man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agement personnel responsible for investment operations, including the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">senior investment officers. Each Board also reviewed the materials provided</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by its respective Fund&#146;s portfolio management team discussing such Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance and such Fund&#146;s investment objective, strategies and outlook.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board considered, among other factors, the number, education and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">experience of BlackRock&#146;s investment personnel generally and its respective</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s portfolio management team, investments by portfolio managers in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds they manage, BlackRock&#146;s portfolio trading capabilities, BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of technology, BlackRock&#146;s commitment to compliance and BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approach to training and retaining portfolio managers and other research,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisory and management personnel. Each Board also reviewed a general</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">description of BlackRock&#146;s compensation structure with respect to its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respective Fund&#146;s portfolio management team and BlackRock&#146;s ability</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to attract and retain high-quality talent.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In addition to advisory services, each Board considered the quality of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">administrative and non-investment advisory services provided to its respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive Fund. BlackRock and its affiliates and significant shareholders provide</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds with certain administrative and other services (in addition to any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such services provided to the Funds by third parties) and officers and other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">personnel as are necessary for the operations of the Funds. In addition to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisory services, BlackRock and its affiliates provide the Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with other services, including (i) preparing disclosure documents, such as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the prospectus and the statement of additional information in connection</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with the initial public offering and periodic shareholder reports; (ii) prepar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing communications with analysts to support secondary market trading of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds; (iii) assisting with daily accounting and pricing; (iv) preparing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">periodic filings with regulators and stock exchanges; (v) overseeing and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">coordinating the activities of other service providers; (vi) organizing Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">meetings and preparing the materials for such Board meetings; (vii) pro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">viding legal and compliance support; and (viii) performing other adminis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trative functions necessary for the operation of the Funds, such as tax</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reporting, fulfilling regulatory filing requirements, and call center services.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards reviewed the structure and duties of BlackRock&#146;s fund adminis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tration, accounting, legal and compliance departments and considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s policies and procedures for assuring compliance with applica-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ble laws and regulations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">B. The Investment Performance of the Funds and BlackRock: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including its Independent Board Members, also reviewed and considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the performance history of its respective Fund. In preparation for the April 14,</FONT></P>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 61</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 meeting, the Boards were provided with reports, independently pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pared by Lipper, which included a comprehensive analysis of each Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance. The Boards also reviewed a narrative and statistical analysis</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Lipper data that was prepared by BlackRock, which analyzed various</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">factors that affect Lipper&#146;s rankings. In connection with its review, each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board received and reviewed information regarding the investment per-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">formance of its respective Fund as compared to a representative group</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of similar funds as determined by Lipper and to all funds in such Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">applicable Lipper category and, where applicable, a customized peer group</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">selected by BlackRock. Each Board was provided with a description of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">methodology used by Lipper to select peer funds. Each Board regularly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reviews the performance of its respective Fund throughout the year.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of BTZ noted that, in general, BTZ performed better than its Peers</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in that the performance of BTZ was at or above the median of its customized</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lipper peer group in both the one-year and since inception periods reported.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of CII noted that, in general, CII performed better than its Peers</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in that the performance of CII was at or above the median of its Lipper</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Performance Universe in two of the one-year, three-year and since incep-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion periods reported.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of BGT noted that, in general, BGT performed better than its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peers in that the performance of BGT was at or above the median of its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lipper Performance Universe in each of the one-year, three-year and since</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inception periods reported.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of each of PSW, PSY, and BPP noted that PSW, PSY, and BPP</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performed below the median of their respective customized Lipper peer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">group in the one-, three- and five-year periods reported. The Board of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each of PSW, PSY, and BPP, and BlackRock reviewed the reasons for PSW&#146;s,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY&#146;s, and BPP&#146;s underperformance during these periods compared with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their respective Peers. Each Board was informed that, among other things,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW&#146;s, PSY&#146;s, and BPP&#146;s respective underweight position to retail preferreds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">negatively impacted each such Fund.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For PSW, PSY and BPP, the Board of each respective Fund and BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">discussed BlackRock&#146;s commitment to providing the resources necessary</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to assist the portfolio managers and to improve each such Fund&#146;s per-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">formance, including the changes to PSW&#146;s and PSY&#146;s non-fundamental</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment policies.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">C. Consideration of the Advisory Fees and the Cost of the Services</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">and Profits to be Realized by BlackRock and its Affiliates from their</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Relationship with the Funds: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Members, reviewed its respective Fund&#146;s contractual advisory fee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates compared with the other funds in its respective Lipper category.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board also compared its respective Fund&#146;s total expenses, as well</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as actual management fees, to those of other comparable funds. Each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board considered the services provided and the fees charged by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock to other types of clients with similar investment mandates,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including separately managed institutional accounts.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards received and reviewed statements relating to BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial condition and profitability with respect to the services it provided</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Funds. The Boards were also provided with a profitability analysis that</FONT></P>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">detailed the revenues earned and the expenses incurred by BlackRock for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services provided to the Funds. The Boards reviewed BlackRock&#146;s profitabil-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ity with respect to the Funds and other funds the Boards currently oversee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the year ended December 31, 2008 compared to available aggregate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">profitability data provided for the year ended December 31, 2007. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boards reviewed BlackRock&#146;s profitability with respect to other fund com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">plexes managed by the Manager and/or its affiliates. The Boards reviewed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s assumptions and methodology of allocating expenses in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">profitability analysis, noting the inherent limitations in allocating costs among</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">various advisory products. The Boards recognized that profitability may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affected by numerous factors including, among other things, fee waivers by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Manager, the types of funds managed, expense allocations and busi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ness mix, and therefore comparability of profitability is somewhat limited.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards noted that, in general, individual fund or product line profitability</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of other advisors is not publicly available. Nevertheless, to the extent such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information is available, the Boards considered BlackRock&#146;s overall operat-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing margin, in general, compared to the operating margin for leading invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment management firms whose operations include advising closed-end</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds, among other product types. The comparison indicated that operating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">margins for BlackRock with respect to its registered funds are generally</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">consistent with margins earned by similarly situated publicly traded com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">petitors. In addition, the Boards considered, among other things, certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">third-party data comparing BlackRock&#146;s operating margin with that of other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">publicly-traded asset management firms, which concluded that larger asset</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bases do not, in themselves, translate to higher profit margins.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In addition, the Boards considered the cost of the services provided to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds by BlackRock, and BlackRock&#146;s and its affiliates&#146; profits relating to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">management and distribution of the Funds and the other funds advised by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock and its affiliates. As part of their analysis, the Boards reviewed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s methodology in allocating its costs to the management of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds. The Boards also considered whether BlackRock has the financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">resources necessary to attract and retain high quality investment manage-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment personnel to perform its obligations under the Agreements and to con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tinue to provide the high quality of services that is expected by the Boards.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards of each of BGT, BPP, BTZ, CII, PSY and PSW noted that its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respective Fund paid contractual management fees, which do not take into</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">account any expense reimbursement or fee waivers, lower than or equal to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the median contractual management fees paid by such Fund&#146;s Peers.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">D. Economies of Scale: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members, considered the extent to which economies of scale might be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">realized as the assets of its respective Fund increase and whether there</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">should be changes in the advisory fee rate or structure in order to enable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such Fund to participate in these economies of scale, for example through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the use of breakpoints in the advisory fee based upon the assets of such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund. The Boards considered that the funds in the BlackRock fund complex</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">share some common resources and, as a result, an increase in the overall</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">size of the complex could permit each fund to incur lower expenses than</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">it would otherwise as a stand-alone entity. The Boards also considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s overall operations and its efforts to expand the scale of, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">improve the quality of, its operations.</FONT></P>
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<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">62 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards noted that most closed-end fund complexes do not have fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">level breakpoints because closed-end funds generally do not experience</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">substantial growth after the initial public offering and each fund is man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">aged independently, consistent with its own investment objectives. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boards noted that only one closed-end fund in the Fund Complex has</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">breakpoints in its fee structure. Information provided by Lipper also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">revealed that only one closed-end fund complex used a complex-level</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">breakpoint structure.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">E. Other Factors: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards also took into account other ancillary or &#147;fall-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">out&#148; benefits that BlackRock or its affiliates and significant shareholders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may derive from their relationship with the Funds, both tangible and intan-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gible, such as BlackRock&#146;s ability to leverage its investment professionals</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">who manage other portfolios, an increase in BlackRock&#146;s profile in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisory community, and the engagement of BlackRock&#146;s affili-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ates and significant shareholders as service providers to the Funds, includ-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing for administrative and distribution services. The Boards also noted that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock may use third-party research obtained by soft dollars generated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by certain mutual fund transactions to assist itself in managing all or a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">number of its other client accounts.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In connection with their consideration of the Agreements, the Boards also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">received information regarding BlackRock&#146;s brokerage and soft dollar prac-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tices. The Boards received reports from BlackRock, which included informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion on brokerage commissions and trade execution practices throughout</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the year.</FONT></P>
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<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Conclusion</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent Board Members, unanimously</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approved the continuation of the Advisory Agreement between its respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive Fund and the Manager for a one-year term ending June 30, 2010, in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the case of BGT, BPP, BTZ and CII, and for a three-month interim period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">followed by a nine-month term ending June 30, 2010 for each of PSW</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and PSY, and, where applicable, the Sub-Advisory Agreement among such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund, the Manager and such Fund&#146;s Sub-Advisor(s) for a one-year term</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ending June 30, 2010, in the case of BGT, BPP, BTZ and CII, and for a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">three-month interim period followed by a nine-month term ending June 30,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2010 for each of PSW and PSY. Based upon its evaluation of all these fac-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tors in their totality, each Board, including its Independent Board Members,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">was satisfied that the terms of the Agreements were fair and reasonable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and in the best interest of its respective Fund and its shareholders. In</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">arriving at a decision to approve the Agreements, each Board did not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">identify any single factor or group of factors as all-important or controlling,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">but considered all factors together, and different Board Members may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">have attributed different weights to the various factors considered. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Independent Board Members were also assisted by the advice of inde-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pendent legal counsel in making this determination. The contractual fee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">arrangements for each Fund reflects the results of several years of review</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by such Fund&#146;s Board Members and predecessor Board Members, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">discussions between such Board Members (and predecessor Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members) and BlackRock. Certain aspects of the arrangements may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the subject of more attention in some years than in others, and the Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members&#146; conclusions may be based in part on their consideration of these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">arrangements in prior years.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 63</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Automatic Dividend Reinvestment Plans</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">For PSW, PSY and CII</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW, PSY and CII offer a Dividend Reinvestment Plan (the &#147;Plan&#148;) under</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which income and capital gains dividends paid by a Fund are automati-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cally reinvested in additional Common Shares of the Fund. The Plan is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">administered on behalf of the shareholders by BNY Mellon Shareowner</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Services for CII and Computershare Trust Company, N.A. for PSW and PSY</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(individually, the &#147;Plan Agent&#148; or together, the &#147;Plan Agents&#148;). Under the Plan,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">whenever a Fund declares a dividend, participants in the Plan will receive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the equivalent in Common Shares of the Fund. The Plan Agents will acquire</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the shares for the participant&#146;s account either (i) through receipt of addi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional unissued but authorized shares of the Funds (&#147;newly issued shares&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or (ii) by purchase of outstanding Common Shares on the open market on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the New York Stock Exchange, as applicable, or elsewhere. If, on the divi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dend payment date, the Fund&#146;s net asset value per share is equal to or less</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">than the market price per share plus estimated brokerage commissions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a condition often referred to as a &#147;market premium&#148;), the Plan Agents will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">invest the dividend amount in newly issued shares. If the Fund&#146;s net asset</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value per share is greater than the market price per share (a condition often</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">referred to as a &#147;market discount&#148;), the Plan Agents will invest the dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount by purchasing on the open market additional shares. If the Plan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agents are unable to invest the full dividend amount in open market pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chases, or if the market discount shifts to a market premium during the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purchase period, the Plan Agents will invest any uninvested portion in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">newly issued shares. The shares acquired are credited to each shareholder&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">account. The amount credited is determined by dividing the dollar amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the dividend by either (i) when the shares are newly issued, the net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset value per share on the date the shares are issued or (ii) when shares</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are purchased in the open market, the average purchase price per share.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Participation in the Plan is automatic, that is, a shareholder is automati-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cally enrolled in the Plan when he or she purchases shares of Common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares of the Funds unless the shareholder specifically elects not to partici-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pate in the Plan. Shareholders who elect not to participate will receive all</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dividend distributions in cash. Shareholders who do not wish to participate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the Plan must advise their Plan Agent in writing (at the address set forth</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">below) that they elect not to participate in the Plan. Participation in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan is completely voluntary and may be terminated or resumed at any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">time without penalty by writing to the Plan Agent.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Plan provides an easy, convenient way for shareholders to make addi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional, regular investments in the Funds. The Plan promotes a long-term</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">strategy of investing at a lower cost. All shares acquired pursuant to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan receive voting rights. In addition, if the market price plus commissions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of a Fund&#146;s shares is above the net asset value, participants in the Plan will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receive shares of the Funds for less than they could otherwise purchase</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">them and with a cash value greater than the value of any cash distribution</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">they would have received. However, there may not be enough shares avail-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">able in the market to make distributions in shares at prices below the net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset value. Also, since the Funds do not redeem shares, the price on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">resale may be more or less than the net asset value.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">There are no enrollment fees or brokerage fees for participating in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan. The Plan Agents&#146; service fees for handling the reinvestment of distri-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">butions are paid for by the Funds. However, brokerage commissions may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">incurred when the Funds purchase shares on the open market and share-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holders will pay a pro rata share of any such commissions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The automatic reinvestment of dividends and distributions will not relieve</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participants of any federal, state or local income tax that may be payable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(or required to be withheld) on such dividends. Therefore, income and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">capital gains may still be realized even though shareholders do not receive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cash. If, when the Funds&#146; shares are trading at a market premium, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds issue shares pursuant to the Plan that have a greater fair market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value than the amount of cash reinvested, it is possible that all or a portion</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the discount from the market value (which may not exceed 5% of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fair market value of the Funds&#146; shares) could be viewed as a taxable distri-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bution. If the discount is viewed as a taxable distribution, it is also possible</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that the taxable character of this discount would be allocable to all the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders, including shareholders who do not participate in the Plan.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Thus, shareholders who do not participate in the Plan might be required to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report as ordinary income a portion of their distributions equal to their allo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cable share of the discount.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">All correspondence concerning the Plan, including any questions about</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Plan, should be directed to the Plan Agent at the following addresses:</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareholders of CII should contact BNY Mellon Shareowner Services, P.O.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Box 385035, Pittsburgh, PA 15252-8035 Telephone: (866) 216-0242</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and shareholders of PSW and PSY should contact Computershare Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company, N.A., P.O. Box 43078, Providence, RI 02940-3078 Telephone:</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(800) 699-1BFM or overnight correspondence should be directed to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent at 250 Royall Street, Canton, MA 02021.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">For BPP, BTZ and BGT</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pursuant to the Plan of BPP, BTZ and BGT (the &#147;Funds&#148;), shareholders are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">automatically enrolled to have all distributions of dividends and capital</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gains reinvested by Computershare Trust Company, N.A. (the &#147;Plan Agent&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the respective Fund&#146;s shares pursuant to the Plan. Shareholders who</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">do not participate in the Plan will receive all distributions in cash paid by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">check and mailed directly to the shareholders of record (or if the shares</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are held in street or other nominee name, then to the nominee) by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent, which serves as agent for the shareholders in administering</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Plan.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">After the Funds declare a dividend or determine to make a capital gain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">distribution, the Plan Agent will acquire shares for the participants&#146; account,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">depending upon the circumstances described below, either (i) through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receipt of unissued but authorized shares from the Funds (&#147;newly issued</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares&#148;) or (ii) by open market purchases. If, on the dividend payment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date, the net asset value per share NAV is equal to or less than the market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price per share plus estimated brokerage commissions (such condition</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">being referred to herein as &#147;market premium&#148;), the Plan Agent will invest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the dividend amount in newly issued shares on behalf of the participants.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The number of newly issued shares to be credited to each participant&#146;s</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">64 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Automatic Dividend Reinvestment Plans (concluded)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">account will be determined by dividing the dollar amount of the dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by the NAV on the date the shares are issued. However, if the NAV is less</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">than 95% of the market price on the payment date, the dollar amount of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the dividend will be divided by 95% of the market price on the payment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date. If, on the dividend payment date, the NAV is greater than the market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value per share plus estimated brokerage commissions (such condition</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">being referred to herein as &#147;market discount&#148;), the Plan Agent will invest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the dividend amount in shares acquired on behalf of the participants in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">open-market purchases.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Plan Agent&#146;s fees for the handling of the reinvestment of dividends and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">distributions will be paid by each Fund. However, each participant will pay</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a pro rata share of brokerage commissions incurred with respect to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent&#146;s open market purchases in connection with the reinvestment</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of dividends and distributions. The automatic reinvestment of dividends</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and distributions will not relieve participants of any Federal income tax</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that may be payable on such dividends or distributions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund reserves the right to amend or terminate the Plan. There is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">no direct service charge to participants in the Plan; however each Fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reserves the right to amend the Plan to include a service charge payable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by the participants. Participants who request a sale of shares through the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent are subject to a &#36;2.50 sales fee and a &#36;0.15 per share sold</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">brokerage commission. All correspondence concerning the Plan should be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">directed to the Plan Agent at P.O. Box 43078, Providence, RI 02940-3078</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or by calling (800) 699-1BFM. All overnight correspondence should be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.</FONT></P>
<P align="center">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 65</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=14%></TD>
     <TD width=10%></TD>
     <TD width=6%></TD>
     <TD width=40%></TD>
     <TD width=14%></TD>
     <TD width=12%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Directors</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Number of BlackRock-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Advised Registered</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Companies</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">of Time</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;RICs&#148;) Consisting of</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Served as</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Portfolios</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Public</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">a Director</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;Portfolios&#148;) Overseen</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Directorships</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Non-Interested Directors</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard E. Cavanagh</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chairman</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee, Aircraft Finance Trust since 1999; Director, The Guardian</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICS consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Arch Chemical</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Board</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Life Insurance Company of America since 1998; Trustee, Educational</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(chemical and allied</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Director</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Testing Service from 1997 to 2009 and Chairman from 2005 to 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">products)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1946</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Advisor, The Fremont Group since 2008 and Director thereof</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 1996; Adjunct Lecturer, Harvard University since 2007; President</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Chief Executive Officer of The Conference Board, Inc. (global</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">business research organization) from 1995 to 2007.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vice Chair</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Partner of Robards &amp; Company, LLC (financial advisory firm) since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AtriCure, Inc.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Board,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1987; Co-founder and Director of the Cooke Center for Learning and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(medical devices);</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chair of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Development, (a not-for-profit organization) since 1987; Director of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Care Investment</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1950</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Enable Medical Corp. from 1996 to 2005.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust, Inc. (health</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">care real estate</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Director</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment trust)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">G. Nicholas Beckwith, III</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chairman and Chief Executive Officer, Arch Street Management, LLC</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Beckwith Family Foundation) and various Beckwith property companies</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 2005; Chairman of the Board of Directors, University of Pittsburgh</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1945</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Medical Center since 2002; Board of Directors, Shady Side Hospital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foundation since 1977; Board of Directors, Beckwith Institute for</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Innovation In Patient Care since 1991; Member, Advisory Council on</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biology and Medicine, Brown University since 2002; Trustee, Claude</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Worthington Benedum Foundation (charitable foundation) since 1989;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board of Trustees, Chatham University since 1981; Board of Trustees,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Pittsburgh since 2002; Emeritus Trustee, Shady Side</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Academy since 1977; Chairman and Manager, Penn West Industrial</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trucks LLC (sales, rental and servicing of material handling equipment)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from 2005 to 2007; Chairman, President and Chief Executive Officer,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beckwith Machinery Company (sales, rental and servicing of construction</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and equipment) from 1985 to 2005; Member of the Board of Directors,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">National Retail Properties (REIT) from 2006 to 2007.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kent Dixon</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant/Investor since 1988.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Member</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1937</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant/Editor of The Journal of Portfolio Management since 2006;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Member</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professor in the Practice of Finance and Becton Fellow, Yale University,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School of Management, since 2006; Adjunct Professor of Finance</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1948</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Becton Fellow, Yale University from 1994 to 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kathleen F. Feldstein</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President of Economics Studies, Inc. (private economic consulting</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The McClatchy</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">firm) since 1987; Chair, Board of Trustees, McLean Hospital from</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2000 to 2008 and Trustee Emeritus thereof since 2008; Member of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(publishing)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1941</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Board of Partners Community Healthcare, Inc. since 2005;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member of the Corporation of Partners HealthCare since 1995;</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee, Museum of Fine Arts, Boston since 1992; Member of the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Visiting Committee to the Harvard University Art Museum since 2003.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Financial Officer of JP Morgan &amp; Co., Inc. from 1990 to 1995.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Member</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1939</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jerrold B. Harris</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee, Ursinus College since 2000; Director, Troemner LLC</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Kelso</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(scientific equipment)since 2000.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital Corp.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1942</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">66</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>

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<TR>
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     <TD width=39%></TD>
     <TD width=6%></TD>
     <TD width=8%></TD>
     <TD width=14%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Directors (continued)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Number of BlackRock-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Advised Registered</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Companies</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">of Time</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;RICs&#148;) Consisting of</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Served as</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Portfolios</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Public</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">a Director</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;Portfolios&#148;) Overseen</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Directorships</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Non-Interested Directors</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1
</FONT></SUP></B><B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">R. Glenn Hubbard</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dean, Columbia Business School since 2004; Columbia faculty</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ADP (data and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">member since 1988; Co-Director, Columbia Business School&#146;s</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information services),</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Entrepreneurship Program from 1997 to 2004; Visiting Professor,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">KKR Financial</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1958</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">John F. Kennedy School of Government at Harvard University and the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporation (finance),</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harvard Business School since 1985 and at the University of Chicago</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Life</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 1994; Chairman, U.S. Council of Economic Advisers under the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insurance Company</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President of the United States from 2001 to 2003.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(insurance)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">W. Carl Kester</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">George Fisher Baker Jr. Professor of Business Administration, Harvard</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Member</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Business School; Deputy Dean for Academic Affairs, since 2006; Unit</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Head, Finance, Harvard Business School, from 2005 to 2006; Senior</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1951</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Associate Dean and Chairman of the MBA Program of Harvard Business</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School, from 1999 to 2005; Member of the faculty of Harvard Business</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School since 1981; Independent Consultant since 1978.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Directors serve until their resignation, removal or death, or until December 31 of the
year in which they turn 72.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Date shown is the earliest date a person has served as a director for the Funds covered
by this annual report. Following the combination of Merrill Lynch</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment Managers, L.P. (&#147;MLIM&#148;) and BlackRock, Inc. (&#147;BlackRock&#148;) in September 2006, the various legacy MLIM and legacy BlackRock Fund
boards</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows directors as joining the Funds&#146; board in
2007,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III, 1999; Richard E.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cavanagh, 1994; Kent Dixon, 1988; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interested Directors</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">171 RICs</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Research &amp; Management Company from 2000 to 2005; Chairman of the Board</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">consisting of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Trustees, State Street Research Mutual Funds from 2000 to 2005; Chairman,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">282 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1945</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SSR Realty from 2000 to 2004.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Henry Gabbay</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">171 RICs</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">consisting of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from 1998 to 2007; President of BlackRock Funds and BlackRock Bond</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">282 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1947</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds in the BlackRock fund complex from 1989 to 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mr. Davis is an &#147;interested person,&#148; as defined in the Investment Company Act
of 1940, of the Funds based on his position with BlackRock, Inc. and its</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affiliates. Mr. Gabbay is an &#147;interested person&#148; of the Funds based on his former positions with BlackRock, Inc. and its affiliates as well as his
ownership</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BlackRock, Inc. and PNC securities. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=center colspan=3>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">67</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Directors (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length of</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds</FONT></B>&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Time Served Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=right style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Funds Officers</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Anne F. Ackerley</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 2009;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Chief</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Operating Officer of BlackRock&#146;s Global Client Group (GCG) since 2009; Chief Operating Officer of BlackRock&#146;s</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Executive</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">U.S. Retail Group from 2006 to 2009; Head of BlackRock&#146;s Mutual Fund Group from 2000 to 2006.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1962</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Brendan Kyne</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vice</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director of BlackRock, Inc. since 2008; Head of Product Development and Management for BlackRock&#146;s U.S. Retail</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Group since 2009, co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Associate of BlackRock, Inc. from 2002 to 2004.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1977</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Neal J. Andrews</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1966</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jay M. Fife</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Treasurer</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment Managers, L.P. (&#147;MLIM&#148;) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MLIM Fund Services Group from 2001 to 2006.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1970</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Brian P. Kindelan</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Compliance</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, LLC from 2001 to 2004.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1959</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Howard B. Surloff</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Secretary</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Goldman Sachs Asset Management, L.P. from 1993 to 2006.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1965</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officers of the Funds serve at the pleasure of the Board.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Advisor</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Custodians</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transfer Agent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting Agent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Legal Counsel</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Advisors, LLC</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Street Bank</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Common Shares</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Street Bank</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Registered Public</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Skadden, Arps, Slate,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wilmington, DE 19809</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trust Company</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Computershare Trust Company, N.A.</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trust Company</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting Firm</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Meagher &amp; Flom </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLP</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boston, MA 02111</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Canton, MA 02021</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, NJ 08540</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deloitte &amp; Touche </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLP</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10036</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sub-Advisor</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, NJ 08540</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Financial</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brown Brothers,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BNY Mellon Shareowner Services</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Address of the Funds</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management, Inc.</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,3</FONT></SUP>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harriman &amp; Co.</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jersey City, NJ 07310</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Bellevue Parkway</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boston, MA 02109</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wilmington, DE 19809</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auction Agent</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Investment</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Preferred Shares</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management, LLC</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BNY Mellon Shareowner Services</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plainsboro, NJ 08536</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jersey City, NJ 07310</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For all Funds except CII.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For CII.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For PSW, PSY, BPP, BTZ and BGT.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Funds retired. The Funds&#146; Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">wishes Mr. Burke well in his retirement.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Funds, and Brendan Kyne</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">became Vice President of the Funds.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">68 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Proxy Results</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=9>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Annual Meeting of Shareholders was held on August 26, 2009 for shareholders of record on June 29, 2009 to elect director nominees of each Fund:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Approved the Class II Directors as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,304,993</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">695,969</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,536</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,358,516</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">642,446</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,407,966</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">592,996</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,476,492</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,268,611</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,600</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">108</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,358,705</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,386,398</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,337,245</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,407,858</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,044,548</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">543,383</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,522</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,044,548</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">543,383</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,037,584</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550,347</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Approved the Directors as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">G. Nicholas Beckwith, III</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard E. Cavanagh</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,172,227</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,688,817</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,233,458</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,627,586</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,337,729</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,523,315</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,451,844</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">322,043</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,430,797</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">343,090</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,450,828</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">323,059</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,209,217</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,432,504</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,213,593</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,428,128</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,247,323</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,394,398</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kent Dixon</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kathleen F. Feldstein</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,174,585</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,686,459</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,288,696</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,572,348</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,194,912</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,666,132</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,433,142</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">340,745</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,279</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,454,805</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">319,082</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,097,941</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,543,780</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,731</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,195,383</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,446,338</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Henry Gabbay</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jerrold B. Harris</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,181,395</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,679,649</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,303,898</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,557,146</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,281,759</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,579,285</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,438,377</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">335,510</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,450,828</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">323,059</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,447,635</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">326,252</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,166,913</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,474,808</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,240,405</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,401,316</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,247,106</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,394,615</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">R. Glenn Hubbard</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">W. Carl Kester</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,209,180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,651,864</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,313,817</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,547,227</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,310,060</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,550,984</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,436,816</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337,071</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,279</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,437,967</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">335,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,258,257</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,383,464</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,731</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,257,723</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,383,998</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=9>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board is organized into three classes, one class of which is elected annually. Each
Director serves a three-year term concurrent with the class into which he or she is elected.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Voted on by holders of Preferred Shares only</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fund Certification</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain Funds are listed for trading on the New York Stock Exchange</FONT>&nbsp;</TD>
	<TD align=right colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds filed with the SEC the certification of its chief executive officer and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;NYSE&#148;) and have filed with the NYSE their annual chief executive officer</FONT>&nbsp;</TD>
	<TD align=right colspan=5>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chief financial officer required by section 302 of the Sarbanes-Oxley Act.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certification regarding compliance with the NYSE&#146;s listing standards. The</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">OCTOBER 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">69</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (continued)</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividend Policy</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund&#146;s, except CII&#146;s, dividend policy is to distribute all or a portion of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its net investment income to its shareholders on a monthly (quarterly for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII) basis. In order to provide shareholders with a more stable level of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dividend distributions, the Funds may at times pay out less than the entire</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of net investment income earned in any particular month/quarter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and may at times in any particular month/quarter pay out such accumu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lated but undistributed income in addition to net investment income</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earned in that month/quarter. As a result, the dividends paid by the Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for any particular month/quarter may be more or less than the amount</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of net investment income earned by the Funds during such month/quarter.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds&#146; current accumulated but undistributed net investment income,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">if any, is disclosed in the Statements of Assets and Liabilities, which com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prises part of the financial information included in this report.</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">General Information</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds do not make available copies of their Statements of Additional</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Information because the Funds&#146; shares are not continuously offered, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">means that the Statement of Additional Information of each Fund has not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">been updated after completion of the respective Fund&#146;s offerings and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information contained in each Fund&#146;s Statement of Additional Information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may have become outdated.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CII</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the period, the Board of Directors (the &#147;Board&#148;) of CII approved a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">change to the Fund&#146;s option writing policy. The Fund has the authority to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">write (</FONT><FONT size=2 face="FranklinGothic-BookCndItal,Arial,Helvetica,sans-serif">i.e.</FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">, sell)
put options on the types of securities or instruments that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may be held by the Fund, provided that such put options are covered,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">meaning that such options are secured by segregated, liquid instruments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or cash. Under the original policy, the Fund was limited from selling puts if,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as a result, more than 50% of the Fund&#146;s assets would be required to cover</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its potential obligations under its hedging and other investment transac-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions. The Board approved the elimination of this 50% requirement. When</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund writes covered put options, it bears the risk of loss if the value of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the underlying stock declines below the exercise price minus the put pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mium. If the option is exercised, the Fund could incur a loss if it is required</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to purchase the stock underlying the put option at a price greater than the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market price of the stock at the time of exercise plus the put premium the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund received when it wrote the option. While the Fund&#146;s potential gain in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">writing a covered put option is limited to distributions earned on the liquid</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets securing the put option plus the premium received from the pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chaser of the put option, the Fund risks a loss equal to the entire exercise</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price of the option minus the put premium.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PSW, PSY, BPP and BTZ</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On August 26, 2009, the Board of PSW, PSY, BPP and BTZ (the &#147;Funds&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approved a change to certain investment policies of the Funds. As a result</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of these policy changes, PSY and BPP will no longer focus their investments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">primarily on preferred securities and PSW will no longer focus its invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments primarily on preferred securities and corporate bonds. In addition,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ will no longer focus its investments primarily on preferred and equity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities, nor will it employ an option-writing strategy in the future.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Instead, the Funds will transition to a portfolio investing in a broader</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">spectrum of securities across the capital structure. In addition, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board approved name changes for the Funds as follows:</FONT></P>
<P align="left">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Prior Name New Name</FONT></B><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Preferred and Corporate BlackRock Credit Allocation Income</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income Strategies Fund, Inc. Trust I, Inc.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Preferred Income Strategies BlackRock Credit Allocation Income</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund, Inc. Trust II, Inc.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Preferred Opportunity Trust BlackRock Credit Allocation Income Trust III</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Preferred and Equity BlackRock Credit Allocation Income Trust IV</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advantage Trust</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY and BPP each previously employed a non-fundamental investment pol-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">icy of investing, under normal market conditions, at least 80% of its total</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets in preferred securities. PSW previously employed a non-fundamental</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment policy of investing, under normal market conditions, at least</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80% of its total assets in a portfolio of preferred securities and corporate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">debt securities. In addition, PSW employed a policy of investing, under</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">normal market conditions, at least 65% of its total assets in preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities and up to 35% of its total assets in debt securities. BTZ previ-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ously employed a non-fundamental investment policy of investing, under</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">normal market conditions, at least 80% of its total assets in preferred and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">equity securities and derivatives with economic characteristics similar to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">individual or groups of equity securities. For each Fund, its non-fundamen-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tal policy has been revised to allow the Fund to invest, under normal mar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ket conditions, at least 80% of its total assets in credit-related securities,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including, but not limited to, investment grade corporate bonds, high yield</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bonds, bank loans, preferred securities or convertible bonds or derivatives</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with economic characteristics similar to these credit-related securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board has taken these actions in response to the current and prospec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive market environment for preferred securities. BlackRock and the Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">believe the amended policies will better position each Fund to achieve its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment objective and are in the best interests of the Funds&#146; sharehold-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ers. The approved changes will not alter the Funds&#146; investment objectives</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and each Fund will continue to be managed in accordance with its invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment objective of primarily providing shareholders with current income and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">secondarily providing shareholders with capital appreciation.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In addition to the foregoing, the Board also approved changes to each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s restriction on credit quality of eligible investments. Previously, each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund was restricted to investing, under normal market conditions, no more</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">than 20% of its total assets in securities rated below investment grade at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the time of purchase. The amended policy allows each Fund to invest,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">under normal market conditions, without limitation in securities rated below</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment grade at the time of purchase. While this policy affords each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund additional flexibility to invest in securities rated below investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">grade at the time of purchase, it is anticipated, under current market con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ditions, that the Fund will maintain an average credit quality of at least</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment grade.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock anticipates that it will gradually reposition each Fund&#146;s portfolio</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">over time and that during such period the Fund may continue to hold a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">substantial portion of its assets in preferred securities, corporate bonds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and/or equity securities, as applicable. At this time, it is uncertain how long</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the repositioning may take, and the Fund may continue to be subject to</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">70 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional </FONT><B><FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Information (continued)</FONT></B><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">General Information (continued)</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risks associated with investing a substantial portion of its assets in pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ferred securities until the repositioning is complete.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">The Fund&#146;s Investments</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Following the transition, each Fund will invest at least 80% of its total</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets in credit-related securities, including, but not limited to, the follow-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing types of investments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate Bonds &#151; The Funds may invest in corporate bonds. The invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment return of corporate bonds reflects interest on the security and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">changes in the market value of the security. The market value of a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">corporate bond generally may be expected to rise and fall inversely with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rates. The market value of a corporate bond also may be affected</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by the credit rating of the corporation, the corporation&#146;s performance and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">perceptions of the corporation in the market place. There is a risk that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the issuers of the securities may not be able to meet their obligations on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest or principal payments at the time called for by an instrument.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Below Investment Grade Securities &#151; Though the Funds&#146; portfolios are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expected to maintain an average credit quality of at least investment grade</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quality, the Fund may have a portion of its assets invested in securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rated below investment grade, such as those rated Ba or lower by Moody&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BB or lower by S&amp;P or Fitch or securities comparably rated by other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rating agencies, or in unrated securities determined by BlackRock Advisors,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLC (the &#147;Manager&#148;) to be of comparable quality. Securities rated Ba by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Moody&#146;s are judged to have speculative elements, their future cannot be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">considered as well assured and often the protection of interest and princi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pal payments may be very moderate. Securities rated BB by S&amp;P or Fitch</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are regarded as having predominantly speculative characteristics and, while</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such obligations have less near-term vulnerability to default than other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">speculative grade debt, they face major ongoing uncertainties or exposure</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to adverse business, financial or economic conditions which could lead to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inadequate capacity to meet timely interest and principal payments.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Securities rated C are regarded as having extremely poor prospects of ever</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">attaining any real investment standing. Securities rated D are in default</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the payment of interest and/or repayment of principal is in arrears.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">When the Manager believes it to be in the best interests of the Funds&#146; share-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holders, the Funds will reduce their investment in lower grade securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank Loans &#151; The Fund may invest in bank loans denominated in US and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">foreign currencies that are originated, negotiated and structured by a syn-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dicate of lenders (&#147;Co-Lenders&#148;) consisting of commercial banks, thrift</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutions, insurance companies, financial companies or other financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutions one or more of which administers the security on behalf of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">syndicate (the &#147;Agent Bank&#148;). Co-Lenders may sell such securities to third</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">parties called &#147;Participants.&#148; The Fund may invest in such securities either</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by participating as a Co-Lender at origination or by acquiring an interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the security from a Co-Lender or a Participant (collectively, &#147;Participation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interests&#148;). Co-Lenders and Participants interposed between the Fund and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the corporate borrower (the &#147;Borrower&#148;), together with Agent Banks, are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">referred herein as &#147;Intermediate Participants.&#148; The Fund also may purchase a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participation interest in a portion of the rights of an Intermediate Participant,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which would not establish any direct relationship between the Fund and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Borrower. In such cases, the Fund would be required to rely on the</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Intermediate Participant that sold the participation interest not only for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the enforcement of the Fund&#146;s rights against the Borrower but also for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receipt and processing of payments due to the Fund under the security.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Because it may be necessary to assert through an Intermediate Participant</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such rights as may exist against the Borrower, in the event the Borrower</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fails to pay principal and interest when due, the Fund may be subject to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">delays, expenses and risks that are greater than those that would be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">involved if the Fund could enforce its rights directly against the Borrower.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Moreover, under the terms of a Participation Interest, the Fund may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">regarded as a creditor of the Intermediate Participant (rather than of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Borrower), so that the Fund may also be subject to the risk that the Inter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mediate Participant may become insolvent. Similar risks may arise with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respect to the Agent Bank if, for example, assets held by the Agent Bank</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the benefit of the Fund were determined by the appropriate regulatory</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">authority or court to be subject to the claims of the Agent Bank&#146;s creditors.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In such case, the Fund might incur certain costs and delays in realizing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">payment in connection with the Participation Interest or suffer a loss of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">principal and/or interest. Further, in the event of the bankruptcy or insol-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">vency of the Borrower, the obligation of the Borrower to repay the loan may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be subject to certain defenses that can be asserted by such Borrower as a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">result of improper conduct by the Agent Bank or Intermediate Participant.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Convertible Bonds &#151; The Fund may invest in convertible bonds. A convertible</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bond is a bond that may be converted into or exchanged for a prescribed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of common stock or other equity security of the same or a different</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issuer within a particular period of time at a specified price or formula. A</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">convertible bond entitles the holder to receive interest paid or accrued on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">debt until the convertible bond matures or is redeemed, converted or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchanged. Before conversion, convertible bonds have characteristics simi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lar to nonconvertible income securities in that they ordinarily provide a sta-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ble stream of income with generally higher yields than those of common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">stocks of the same or similar issuers, but lower yields than comparable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nonconvertible bonds. The value of a convertible bond is influenced by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">changes in interest rates, with investment value declining as interest rates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increase and increasing as interest rates decline. The credit standing of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issuer and other factors also may have an effect on the convertible bond&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment value. Convertible bonds rank senior to common stock in a cor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">poration&#146;s capital structure but are usually subordinated to comparable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nonconvertible bonds. Convertible bonds may be subject to redemption at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the option of the issuer at a price established in the convertible bond&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">governing instrument.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Derivatives &#151; The Fund may engage in credit derivative transactions.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">There are two broad categories of credit derivatives: default price risk</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">derivatives and market spread derivatives. Default price risk derivatives are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">linked to the price of reference securities or loans after a default by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issuer or borrower, respectively. Market spread derivatives are based on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk that changes in market factors, such as credit spreads, can cause a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">decline in the value of a security, loan or index. There are three basic trans-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">actional forms for credit derivatives: swaps, options and structured instru-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments. The Fund may use credit default swaps. A credit default swap is an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreement between two counterparties that allows one counterparty (the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#147;seller&#148;) to purchase or be &#147;long&#148; a third party&#146;s credit risk and the other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">party (the &#147;buyer&#148;) to sell or be &#147;short&#148; the credit risk. Typically, the seller</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 71</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (continued)</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">General Information (continued)</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agrees to make regular fixed payments to the buyer with the same fre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quency as the underlying reference bond. In exchange, the seller typically</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">has the right upon default of the underlying bond to put the bond to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">buyer in exchange for the bond&#146;s par value plus interest. Credit default</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">swaps can be used as a substitute for purchasing or selling a credit secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rity and sometimes are preferable to actually purchasing the security. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund does not intend to leverage its investments through the use of credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default swaps. A purchaser of a credit default swap is subject to counter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">party risk. The Fund will monitor any such swaps or derivatives with a view</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">towards ensuring that the Fund remains in compliance with all applicable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">regulatory, investment policy and tax requirements.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Risks</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As a result of the Fund&#146;s portfolio restructuring and revisions to certain of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its non-fundamental investment policies, your investment in the Fund will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be subject to the following additional risks following the transition:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Risk &#151; Credit risk is the risk that one or more debt securities in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s portfolio will decline in price or fail to pay interest or principal when</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">due because the issuer of the security experiences a decline in its financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">status. If the recent adverse conditions in the credit markets adversely</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affect the broader economy, the credit quality of issuers of credit securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in which the Fund may invest would be more likely to decline, all other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">things being equal. While a senior position in the capital structure of a bor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rower may provide some protection with respect to the Fund&#146;s investments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in senior secured floating rate and fixed rate loans or debt, losses may still</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">occur. To the extent the Fund invests in below investment grade securities, it</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">will be exposed to a greater amount of credit risk than a Fund which invests</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in investment grade securities. The prices of lower grade securities are more</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sensitive to negative developments, such as a decline in the issuer&#146;s rev-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">enues or a general economic downturn, than are the prices of higher grade</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities. Securities of below investment grade quality are predominantly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">speculative with respect to the issuer&#146;s capacity to pay interest and repay</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">principal when due and therefore involve a greater risk of default. In addi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion, the Fund&#146;s use of credit derivatives will expose it to additional risk in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the event that the bonds underlying the derivatives default.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest Rate Risk &#151; The value of certain debt securities in the Fund&#146;s port-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">folio could be affected by interest rate fluctuations. When interest rates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">decline, the value of fixed rate securities can be expected to rise. Con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">versely, when interest rates rise, the value of fixed rate securities can be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expected to decline. Recent adverse conditions in the credit markets may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cause interest rates to rise. Although changes in prevailing interest rates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">can be expected to cause some fluctuations in the value of floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities (due to the fact that rates only reset periodically), the values of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">these securities are substantially less sensitive to changes in market inter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">est rates than fixed rate instruments. Fluctuations in the value of the Fund&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities will not affect interest income on existing securities, but will be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflected in the Fund&#146;s net asset value. The Fund may utilize certain strate-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gies, including taking positions in futures or interest rate swaps, for the pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pose of reducing the interest rate sensitivity of the portfolio and decreasing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Fund&#146;s exposure to interest rate risk, although there is no assurance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that it will do so or that such strategies will be successful.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prepayment Risk &#151; During periods of declining interest rates, borrowers</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may exercise their option to prepay principal earlier than scheduled. For</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fixed rate securities, such payments often occur during periods of declin-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing interest rates, forcing the Fund to reinvest in lower yielding securities,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">resulting in a possible decline in the Fund&#146;s income and distributions to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders. This is known as prepayment or &#147;call&#148; risk. Below investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">grade securities frequently have call features that allow the issuer to redeem</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the security at dates prior to its stated maturity at a specified price (typi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cally greater than par) only if certain prescribed conditions are met (&#147;call</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">protection&#148;). An issuer may redeem a below investment grade security if,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for example, the issuer can refinance the debt at a lower cost due to declin-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing interest rates or an improvement in the credit standing of the issuer.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain of the Fund&#146;s investments will not have call protection. For premium</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bonds (bonds acquired at prices that exceed their par or principal value)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purchased by the Fund, prepayment risk may be enhanced.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Below Investment Grade Risk &#151; The Fund may invest a substantial portion</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of its assets in fixed income securities that are rated below investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">grade, which are commonly referred to as &#147;junk bonds&#148; and are regarded</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as predominately speculative with respect to the issuer&#146;s capacity to pay</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest and repay principal.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lower grade securities may be particularly susceptible to economic down-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">turns. It is likely that a prolonging of the current economic recession or a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">future economic recession could disrupt severely the market for such secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rities and may have an adverse impact on the value of such securities. In</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">addition, it is likely that any such continuing or future economic downturn</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">could adversely affect the ability of the issuers of such securities to repay</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">principal and pay interest thereon and increase the incidence of default for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lower grade securities, though high yielding, are characterized by high risk.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">They may be subject to certain risks with respect to the issuing entity and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to greater market fluctuations than certain lower yielding, higher rated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities. The retail secondary market for lower grade securities may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">less liquid than that for higher rated securities. Adverse conditions could</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">make it difficult at times for the Fund to sell certain securities or could</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">result in lower prices than those used in calculating the Fund&#146;s net asset</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value. Because of the substantial risks associated with investments in lower</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">grade securities, you could lose money on your investment in common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares of the Fund, both in the short-term and the long-term.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank Loan Risk &#151; As in the case of junk bonds, bank loans may be rated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in lower grade rating categories, or may be unrated but of lower grade qual-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ity. As in the case of junk bonds, bank loans can provide higher yields than</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">higher grade income securities, but are subject to greater credit and other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risks. Although bank loan obligations often are secured by pledges of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets by the borrower and have other structural aspects intended to pro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">vide greater protection to the holders of bank loans than the holders of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unsecured and subordinated securities, there are also additional risks in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holding bank loans. In particular, the secondary trading market for bank</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">loans is not well developed, and therefore, bank loans present increased</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market risk relating to liquidity and pricing concerns. In addition, there is</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">72 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (continued)</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">General Information (concluded)</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">no assurance that the liquidation of the collateral would satisfy the claims</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the borrower&#146;s obligations in the event of the nonpayment of scheduled</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest or principal, or that the collateral could be readily liquidated. As</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a result, the Fund might not receive payments to which it is entitled and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">thereby may experience a decline in the value of its investment and its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net asset value.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Convertible Bonds Risk &#151; Although to a lesser extent than with fixed-income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities, the market value of convertible bonds tends to decline as inter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">est rates increase and, conversely, tends to increase as interest rates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">decline. In addition, because of the conversion feature, the market value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of convertible bonds tends to vary with fluctuations in the market value of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the underlying common stock. A unique feature of convertible bonds is that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as the market price of the underlying common stock declines, convertible</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bonds tend to trade increasingly on a yield basis, and so may not experi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ence market value declines to the same extent as the underlying common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">stock. When the market price of the underlying common stock increases,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the prices of the convertible bonds tend to rise as a reflection of the value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the underlying common stock. While no securities investments are with-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">out risk, investments in convertible bonds generally entail less risk than</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments in common stock of the same issuer.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Credit Derivatives Risk &#151; The use of credit derivatives is a highly specialized</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">activity which involves strategies and risks different from those associated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with ordinary portfolio security transactions. If the Manager is incorrect in its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">forecasts of default risks, market spreads or other applicable factors, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment performance of the Fund would diminish compared with what it</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">would have been if these techniques were not used. Moreover, even if the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Manager is correct in its forecasts, there is a risk that a credit derivative posi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion may correlate imperfectly with the price of the asset or liability being</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">protected. The Fund&#146;s risk of loss in a credit derivative transaction varies with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the form of the transaction. For example, if the Fund purchases a default</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">option on a security, and if no default occurs with respect to the security, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fund&#146;s loss is limited to the premium it paid for the default option. In con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trast, if there is a default by the grantor of a default option, the Fund&#146;s loss</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">will include both the premium that it paid for the option and the decline in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the underlying security that the default option protected.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other than the revisions discussed above, there were no material changes</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the Funds&#146; investment objectives or policies or to the Funds&#146; charters or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by-laws that were not approved by the shareholders or in the principal risk</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">factors associated with investment in the Funds. There have been no</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">changes in the persons who are primarily responsible for the day-to-day</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">management of the Funds&#146; portfolios.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BGT</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the period, the Board of BGT approved a change to the Fund&#146;s name</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from &#147;BlackRock Global Floating Rate Income Trust&#148; to &#147;BlackRock Floating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rate Income Trust.&#148;</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Quarterly performance, semi-annual and annual reports and other informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion regarding the Funds may be found on BlackRock&#146;s website, which can</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be accessed at http://www.blackrock.com. This reference to BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">website is intended to allow investors public access to information regard-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the Funds and does not, and is not intended to, incorporate BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">website into this report.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Electronic Delivery</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Electronic copies of most financial reports are available on the Funds&#146; web-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sites or shareholders can sign up for e-mail notifications of quarterly state-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, annual and semi-annual reports by enrolling in the Funds&#146; electronic</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">delivery program.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Shareholders Who Hold Accounts with Investment Advisors, Banks</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">or Brokerages:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Please contact your financial advisor to enroll. Please note that not all</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisors, banks or brokerages may offer this service.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Householding</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Funds will mail only one copy of shareholder documents, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">annual and semi-annual reports and proxy statements, to shareholders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with multiple accounts at the same address. This practice is commonly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">called &#147;householding&#148; and it is intended to reduce expenses and eliminate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">duplicate mailings of shareholder documents. Mailings of your shareholder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">documents may be householded indefinitely unless you instruct us other-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">wise. If you do not want the mailing of these documents to be combined</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with those for other members of your household, please contact the Funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at (800) 441-7762.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Quarterly Schedule of Investments</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund files its complete schedule of portfolio holdings with the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Securities and Exchange Commission (&#147;SEC&#148;) for the first and third quar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ters of each fiscal year on Form N-Q. Each Fund&#146;s Forms N-Q are available</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the SEC&#146;s website at http://www.sec.gov and may also be reviewed and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">copied at the SEC&#146;s Public Reference Room in Washington, DC. Information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the operation of the Public Reference Room may be obtained by calling</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(202) 551-8090. Each Fund&#146;s Forms N-Q may also be obtained upon</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">request and without charge by calling (800) 441-7762.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Proxy Voting Policies and Procedures</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A description of the policies and procedures that the Funds use to deter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mine how to vote proxies relating to portfolio securities is available (1) with-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">out charge, upon request, by calling toll-free (800) 441-7762; (2) at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">www.blackrock.com; and (3) on the SEC&#146;s website at http://www.sec.gov.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Proxy Voting Record</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Information about how each Fund voted proxies relating to securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">held in each Fund&#146;s portfolio during the most recent 12-month period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended June 30 is available upon request and without charge (1) at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">www.blackrock.com or by calling (800) 441-7762 and (2) on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">SEC&#146;s website at http://www.sec.gov.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT OCTOBER 31, 2009 73</FONT></P>

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	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (concluded)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Section 19(a) Notices</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
</TR>
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	<TD align=left colspan=9>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These reported amounts and sources of distributions are estimates and are not being provided for tax reporting purposes. The actual amounts and sources</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=9>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for tax reporting purposes will depend upon each Fund&#146;s investment experience during the year and may be subject to changes based on the tax regula-</FONT>&nbsp;</TD>
</TR>
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	<TD align=left colspan=9>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions. Each Fund will provide a Form 1099-DIV each calendar year that will explain the character of these dividends and distributions for federal income</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tax purposes.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">October 31, 2009</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Cumulative Distributions</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">% Breakdown of the Total Cumulative</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">for the Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Distributions for the Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Per</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Per</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Return of</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Return of</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Gains</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Share</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Gains</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Share</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSW</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.814362</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.141238</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.955600</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">85%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PSY</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.033169</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.083912</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.117081</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">92%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BPP</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.075354</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.102146</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.177500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">91%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BTZ.</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.934658</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.475342</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.410000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">66%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CII</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.329222</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.610778</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.940000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGT</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.379018</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.233111</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.612129</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=9>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=9>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a return of capital. A return of capital may occur, for example, when some or all of the shareholder&#146;s investment in a Fund is returned to the shareholder.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A return of capital does not necessarily reflect a Fund&#146;s investment performance and should not be confused with &#145;yield&#146; or &#145;income.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Privacy Principles</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock is committed to maintaining the privacy of its current and former</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fund investors and individual clients (collectively, &#147;Clients&#148;) and to safe-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">guarding their non-public personal information. The following information is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provided to help you understand what personal information BlackRock col-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lects, how we protect that information and why in certain cases we share</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such information with select parties.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If you are located in a jurisdiction where specific laws, rules or regulations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require BlackRock to provide you with additional or different privacy-related</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rights beyond what is set forth below, then BlackRock will comply with those</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">specific laws, rules or regulations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock obtains or verifies personal non-public information from and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about you from different sources, including the following: (i) information we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receive from you or, if applicable, your financial intermediary, on applica-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions, forms or other documents; (ii) information about your transactions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with us, our affiliates, or others; (iii) information we receive from a consumer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reporting agency; and (iv) from visits to our websites.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock does not sell or disclose to non-affiliated third parties any non-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">public personal information about its Clients, except as permitted by law</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or as is necessary to respond to regulatory requests or to service Client</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounts. These non-affiliated third parties are required to protect the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">confidentiality and security of this information and to use it only for its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">intended purpose.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We may share information with our affiliates to service your account or to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provide you with information about other BlackRock products or services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that may be of interest to you. In addition, BlackRock restricts access</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to non-public personal information about its Clients to those BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">employees with a legitimate business need for the information. BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">maintains physical, electronic and procedural safeguards that are designed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to protect the non-public personal information of its Clients, including pro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cedures relating to the proper storage and disposal of such information.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">74 ANNUAL REPORT OCTOBER 31, 2009</FONT></P>

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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of future performance. PSW, PSY, BPP, BTZ and BGT leverage their Common Shares, which creates risk for Common Shareholders, including the likelihood of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">greater volatility of net asset value and market price of Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares&#146; yield. Statements and other information herein are as dated and are subject to change.</FONT></P>
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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 2 &#150; Code of Ethics &#150; The registrant (or the &#147;Fund&#148;) has adopted a code of ethics, as of the end</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the period covered by this report, applicable to the registrant&#146;s principal executive officer,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">principal financial officer and principal accounting officer, or persons performing similar</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">functions. During the period covered by this report, there have been no amendments to or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">waivers granted under the code of ethics. A copy of the code of ethics is available without</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">charge at www.blackrock.com.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 3 &#150; Audit Committee Financial Expert &#150; The registrant&#146;s board of directors or trustees, as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">applicable (the &#147;board of directors&#148;) has determined that (i) the registrant has the following</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">audit committee financial experts serving on its audit committee and (ii) each audit</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">committee financial expert is independent:</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kent Dixon</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Frank J. Fabozzi</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">James T. Flynn</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">W. Carl Kester</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Karen P. Robards</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Robert S. Salomon, Jr. (retired effective December 31, 2008)</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The registrant&#146;s board of directors has determined that W. Carl Kester and Karen P. Robards</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Prof. Kester has a thorough understanding of generally accepted accounting principles,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements and internal control over financial reporting as well as audit committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">functions. Prof. Kester has been involved in providing valuation and other financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">consulting services to corporate clients since 1978. Prof. Kester&#146;s financial consulting</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">services present a breadth and level of complexity of accounting issues that are generally</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">comparable to the breadth and complexity of issues that can reasonably be expected to be</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">raised by the registrant&#146;s financial statements.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Ms. Robards has a thorough understanding of generally accepted accounting principles,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements and internal control over financial reporting as well as audit committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">functions. Ms. Robards has been President of Robards &amp; Company, a financial advisory</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">where she was responsible for evaluating and assessing the performance of companies based</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">on their financial results. Ms. Robards has over 30 years of experience analyzing financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">statements. She also is a member of the audit committee of one publicly held company and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a non-profit organization.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under applicable securities laws, a person determined to be an audit committee financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">expert will not be deemed an &#147;expert&#148; for any purpose, including without limitation for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">purposes of Section 11 of the Securities Act of 1933, as a result of being designated or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">identified as an audit committee financial expert. The designation or identification as an</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">audit committee financial expert does not impose on such person any duties, obligations, or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">liabilities greater than the duties, obligations, and liabilities imposed on such person as a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">member of the audit committee and board of directors in the absence of such designation or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">identification.</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 4 &#150; Principal Accountant Fees and Services</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(a) Audit Fees</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(b) Audit-Related Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(c) Tax Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(d) All Other Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">3</FONT></SUP></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Entity Name</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=left>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Enhanced Capital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and Income Fund,</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;37,400</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;37,200</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6,100</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6,100</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1,028</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1,049</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Inc.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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</TABLE><BR>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1 The nature of the services include assurance and related services reasonably related to the performance of the audit of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements not included in Audit Fees.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2 The nature of the services include tax compliance, tax advice and tax planning.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3 The nature of the services include a review of compliance procedures and attestation thereto.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(e)(1) Audit Committee Pre-Approval Policies and Procedures:</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The registrant&#146;s audit committee (the &#147;Committee&#148;) has adopted policies and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures with regard to the pre-approval of services. Audit, audit-related and tax</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compliance services provided to the registrant on an annual basis require specific pre-</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approval by the Committee. The Committee also must approve other non-audit services</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">provided to the registrant and those non-audit services provided to the registrant&#146;s affiliated</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">service providers that relate directly to the operations and the financial reporting of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant. Certain of these non-audit services that the Committee believes are a) consistent</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">with the SEC&#146;s auditor independence rules and b) routine and recurring services that will</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">not impair the independence of the independent accountants may be approved by the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Committee without consideration on a specific case-by-case basis (&#147;general pre-approval&#148;).</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The term of any general pre-approval is 12 months from the date of the pre-approval, unless</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Committee provides for a different period. Tax or other non-audit services provided to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the registrant which have a direct impact on the operation or financial reporting of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant will only be deemed pre-approved provided that any individual project does not</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">exceed &#36;10,000 attributable to the registrant or &#36;50,000 for all of the registrants the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Committee oversees. For this purpose, multiple projects will be aggregated to determine if</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">they exceed the previously mentioned cost levels.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Any proposed services exceeding the pre-approved cost levels will require specific</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">pre-approval by the Committee, as will any other services not subject to general pre-</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approval (e.g., unanticipated but permissible services). The Committee is informed of each</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">service approved subject to general pre-approval at the next regularly scheduled in-person</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">board meeting. At this meeting, an analysis of such services is presented to the Committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">for ratification. The Committee may delegate to one or more of its members the authority to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approve the provision of and fees for any specific engagement of permitted non-audit</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">services, including services exceeding pre-approved cost levels.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(e)(2) None of the services described in each of Items 4(b) through (d) were approved by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(f) Not Applicable</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(g) </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Affiliates&#146; Aggregate Non-Audit Fees:</FONT></U></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=38%></TD>
     <TD width=32%></TD>
     <TD width=28%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous Fiscal Year</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Entity Name</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;414,628</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;412,149</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and Income Fund, Inc.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(h) The registrant&#146;s audit committee has considered and determined that the provision of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">non-audit services that were rendered to the registrant&#146;s investment adviser (not including</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">any non-affiliated sub-adviser whose role is primarily portfolio management and is</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">subcontracted with or overseen by the registrant&#146;s investment adviser), and any entity</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">controlling, controlled by, or under common control with the investment adviser that</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">provides ongoing services to the registrant that were not pre-approved pursuant to paragraph</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accountant&#146;s independence.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Regulation S-X Rule 2-01(c)(7)(ii) &#150; &#36;407,500, 0%</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 5 &#150; Audit Committee of Listed Registrants &#150; The following individuals are members of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant&#146;s separately-designated standing audit committee established in accordance with</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kent Dixon</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Frank J. Fabozzi</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">James T. Flynn</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">W. Carl Kester</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Karen P. Robards</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Robert S. Salomon, Jr. (retired effective December 31, 2008)</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 6 &#150; Investments</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a) The registrant&#146;s Schedule of Investments is included as part of the Report to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Stockholders filed under Item 1 of this form.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b) Not Applicable due to no such divestments during the semi-annual period covered since</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the previous Form N-CSR filing.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 7 &#150; Disclosure of Proxy Voting Policies and Procedures for Closed-End Management</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Companies &#150; The board of directors has delegated the voting of proxies for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund securities to the Fund&#146;s investment adviser (&#147;Investment Adviser&#148;) pursuant to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Adviser&#146;s proxy voting guidelines. Under these guidelines, the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Adviser will vote proxies related to Fund securities in the best interests of the Fund and its</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">stockholders. From time to time, a vote may present a conflict between the interests of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund&#146;s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">person of the Fund or the Investment Adviser, on the other. In such event, provided that the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Adviser&#146;s Equity Investment Policy Oversight Committee, or a sub-committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">thereof (the &#147;Oversight Committee&#148;) is aware of the real or potential conflict or material</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">non-routine matter and if the Oversight Committee does not reasonably believe it is able to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">follow its general voting guidelines (or if the particular proxy matter is not addressed in the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">guidelines) and vote impartially, the Oversight Committee may retain an independent</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Adviser&#146;s clients. If the Investment Adviser determines not to retain an</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">independent fiduciary, or does not desire to follow the advice of such independent fiduciary,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Oversight Committee shall determine how to vote the proxy after consulting with the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Adviser&#146;s Portfolio Management Group and/or the Investment Adviser&#146;s Legal</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and Compliance Department and concluding that the vote cast is in its client&#146;s best interest</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">notwithstanding the conflict. A copy of the Fund&#146;s Proxy Voting Policy and Procedures are</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio securities during the most recent 12-month period ended June 30 is available</FONT></P>

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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">without charge, (i) at www.blackrock.com and (ii) on the SEC&#146;s website at</FONT><BR>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">http://www.sec.gov</FONT></U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 8 &#150; Portfolio Managers of Closed-End Management Investment Companies &#150; as of October 31,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2009.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(1) The registrant (or &#147;Fund&#148;) is managed by a team of investment professionals</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">comprised of Mr. Kevin Rendino, Managing Director at BlackRock, Mr. Kurt</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Schansinger, Managing Director at BlackRock, Carrie King, Director and associate</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio manager and Kyle G. McClements, Managing Director at BlackRock. Mr.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Rendino is head of BlackRock&#146;s Basic Value Equity team. Mr. Schansinger and Ms.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">King are members of BlackRock&#146;s Basic Value Equity team. Mr. McClements is a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">member of BlackRock&#146;s Quantitative Investments team. Messrs. Rendino,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Schansinger and McClements are responsible for the day-to-day management of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund&#146;s portfolio and the selection of its investments. Messrs. Rendino, and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Schansinger and Ms. King have been members of the Fund&#146;s portfolio management</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=20%></TD>
     <TD width=10%></TD>
     <TD width=16%></TD>
     <TD width=14%></TD>
     <TD width=12%></TD>
     <TD width=17%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">team since 2004, 2008 and 2008, respectively. Mr. McClements joined
the</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant&#146;s management team in 2009.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Biography</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kevin Rendino</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Managing Director of BlackRock, Inc. since 2006; Head of BlackRock's</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Basic Value Equity team; Managing Director of Merrill Lynch Investment</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Managers, L.P. (&#147;MLIM&#148;) from 2000 to 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kurt Schansinger</FONT>&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Managing Director of BlackRock, Inc. since 2006; Managing Director of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">MLIM from 2000 - 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Carrie King</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Director of BlackRock, Inc. since 2007; Vice President of BlackRock, Inc.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">in 2006; Vice President of MLIM from 1993 to 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kyle G. McClements</FONT>&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Managing Director of BlackRock since 2009; Director of BlackRock, Inc.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">since 2006; Vice President of BlackRock, Inc. in 2005; Vice President of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">State Street Research &amp; Management from 2004 to 2005.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(2) As of October 31, 2009:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(ii) Number of Other Accounts Managed</FONT></B>&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(iii) Number of Other Accounts and</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">and Assets by Account Type</FONT></B>&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Assets for Which Advisory Fee is</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Performance-Based</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other Pooled</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other Pooled</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(i) Name of</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Registered</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Registered</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Vehicles</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Accounts</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Vehicles</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Accounts</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Companies</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Companies</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kevin Rendino</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">9</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6.77 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1.81 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kurt Schansinger</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">9</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6.77 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1.81 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Carrie King</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">9</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6.77 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1.81 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kyle G. McClements</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">8</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">5</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;4.36 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;414 Million</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;20.8 Million</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iv) Potential Material Conflicts of Interest</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock and its affiliates (collectively, herein &#147;BlackRock&#148;) has built a professional</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">working environment, firm-wide compliance culture and compliance procedures and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">systems designed to protect against potential incentives that may favor one account over</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">another. BlackRock has adopted policies and procedures that address the allocation of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment opportunities, execution of portfolio transactions, personal trading by employees</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and other potential conflicts of interest that are designed to ensure that all client accounts are</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">treated equitably over time. Nevertheless, BlackRock furnishes investment management and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">advisory services to numerous clients in addition to the Fund, and BlackRock may,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">consistent with applicable law, make investment recommendations to other clients or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts (including accounts which are hedge funds or have performance or higher fees</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">such fees), which may be the same as or different from those made to the Fund. In addition,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, its affiliates and significant shareholders and any officer, director, stockholder</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or employee may or may not have an interest in the securities whose purchase and sale</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders, or any officer, director, stockholder, employee or any member of their</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">families may take different actions than those recommended to the Fund by BlackRock with</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">respect to the same securities. Moreover, BlackRock may refrain from rendering any advice</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or services concerning securities of companies of which any of BlackRock&#146;s (or its</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">affiliates&#146; or significant shareholders&#146;) officers, directors or employees are directors or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">officers, or companies as to which BlackRock or any of its affiliates or significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders or the officers, directors and employees of any of them has any substantial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">economic interest or possesses material non-public information. Each portfolio manager</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">also may manage accounts whose investment strategies may at times be opposed to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">strategy utilized for a fund. In this connection, it should be noted that a portfolio manager</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">may currently manage certain accounts that are subject to performance fees. In addition, a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio manager may assist in managing certain hedge funds and may be entitled to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">receive a portion of any incentive fees earned on such funds and a portion of such incentive</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">future manage other such accounts or funds and may be entitled to receive incentive fees.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">fairly. When BlackRock purchases or sells securities for more than one account, the trades</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">allocate investments in a fair and equitable manner among client accounts, with no account</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">receiving preferential treatment. To this end, BlackRock has adopted a policy that is</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">intended to ensure that investment opportunities are allocated fairly and equitably among</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">client accounts over time. This policy also seeks to achieve reasonable efficiency in client</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">transactions and provide BlackRock with sufficient flexibility to allocate investments in a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">manner that is consistent with the particular investment discipline and client base.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(3) As of October 31, 2009:</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager Compensation Overview</FONT></B><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s financial arrangements with its portfolio managers, its competitive</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation and its career path emphasis at all levels reflect the value senior management</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">places on key resources. Compensation may include a variety of components and may vary</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">from year to year based on a number of factors. The principal components of compensation</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">include a base salary, a performance-based discretionary bonus, participation in various</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">benefits programs and one or more of the incentive compensation programs established by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock such as its Long-Term Retention and Incentive Plan.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Base compensation. </FONT></B><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Generally, portfolio managers receive base compensation based on</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">their seniority and/or their position with the firm. Senior portfolio managers who perform</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">additional management functions within the portfolio management group or within</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock may receive additional compensation for serving in these other capacities.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Discretionary Incentive Compensation for Messrs. Rendino and Schansinger and Ms.</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">King</FONT></B><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Discretionary incentive compensation is based on a formulaic compensation program.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s formulaic portfolio manager compensation program includes: pre-tax</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment performance relative to appropriate competitors or benchmarks over 1-, 3- and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">5-year performance periods and a measure of operational efficiency. If a portfolio</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">manager&#146;s tenure is less than five years, performance periods will reflect time in position. In</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">most cases, including for the portfolio managers of the Fund, these benchmarks are the same</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">as the benchmark or benchmarks against which the performance of the Fund or other</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts managed by the portfolio managers are measured. BlackRock&#146;s Chief Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Officers determine the benchmarks against which the performance of funds and other</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts managed by each portfolio manager is compared and the period of time over which</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">performance is evaluated. With respect to the portfolio managers, such benchmarks for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">equity component of the Fund include the Lipper Large Cap Value Funds classification.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Portfolio managers who meet relative investment performance and financial management</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">objectives during a specified performance time period are eligible to receive an additional</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">bonus which may or may not be a large part of their overall compensation. A smaller</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">element of portfolio manager discretionary compensation may include consideration of:</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial results, expense control, profit margins, strategic planning and implementation,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">quality of client service, market share, corporate reputation, capital allocation, compliance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and risk control, leadership, workforce diversity, supervision, technology and innovation.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">All factors are considered collectively by BlackRock management.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Discretionary Incentive Compensation for Mr. McClements</FONT></B><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Discretionary incentive compensation is a function of several components: the performance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of BlackRock, Inc., the performance of the portfolio manager&#146;s group within BlackRock,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the investment performance, including risk-adjusted returns, of the firm&#146;s assets under</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">management or supervision by that portfolio manager relative to predetermined</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">benchmarks, and the individual&#146;s seniority, role within the portfolio management team,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">teamwork and contribution to the overall performance of these portfolios and BlackRock.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">In most cases, including for the portfolio managers of the Fund, these benchmarks are the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">same as the benchmark or benchmarks against which the performance of the Fund or other</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts managed by the portfolio managers are measured. BlackRock&#146;s Chief Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Officers determine the benchmarks against which the performance of funds and other</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts managed by each portfolio manager is compared and the period of time over which</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">performance is evaluated. With respect to Mr. McClements, such benchmarks include a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">combination of Lipper peer groups and a subset of other closed-end funds.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s Chief Investment Officers make a subjective determination with respect to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio manager&#146;s compensation based on the performance of the funds and other accounts</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">managed by each portfolio manager relative to the various benchmarks noted above.</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Performance is measured on a pre-tax basis over various time periods including 1, 3 and 5-</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">year periods, as applicable.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Distribution of Discretionary Incentive Compensation</FONT></B><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Discretionary incentive compensation is distributed to portfolio managers in a combination</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">salary, represents more than 60% of total compensation for the portfolio managers. Paying</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">given year &#147;at risk&#148; based on BlackRock&#146;s ability to sustain and improve its performance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over future periods.</FONT><BR>
<BR>
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Long-Term Retention and Incentive Plan (&#147;LTIP&#148;) &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The LTIP is a
long-term</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">incentive plan that seeks to reward certain key employees. Prior to 2006, the plan provided</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">for the grant of awards that were expressed as an amount of cash that, if properly vested and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">subject to the attainment of certain performance goals, will be settled in cash and/or in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. common stock. Beginning in 2006, awards are granted under the LTIP in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">attainment of certain performance goals, will be settled in BlackRock, Inc. common stock.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Messrs. Rendino, Schansinger and McClements and Ms. King have each received awards</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">under the LTIP.</FONT><BR>
<BR>
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Deferred Compensation Program &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A portion of the compensation paid to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">eligible BlackRock employees may be voluntarily deferred into an account that tracks the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">performance of certain of the firm&#146;s investment products. Each participant in the deferred</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation program is permitted to allocate his deferred amounts among the various</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment options. Messrs. Rendino, Schansinger and McClements and Ms. King have</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">each participated in the deferred compensation program.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other compensation benefits. </FONT></B><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">In addition to base compensation and discretionary</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">incentive compensation, portfolio managers may be eligible to receive or participate in one</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or more of the following:</FONT><BR>
<BR>
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Incentive Savings Plans &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. has created a variety of incentive</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">savings plans in which BlackRock employees are eligible to participate, including a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">company match equal to 50% of the first 6% of eligible pay contributed to the plan capped</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">at &#36;4,000 per year, and a company retirement contribution equal to 3-5% of eligible</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation. The RSP offers a range of investment options, including registered</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment companies managed by the firm. BlackRock contributions follow the investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">direction set by participants for their own contributions or, absent employee investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">direction, are invested into a balanced portfolio. The ESPP allows for investment in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock common stock at a 5% discount on the fair market value of the stock on the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or a dollar value of &#36;25,000. Each portfolio manager is eligible to participate in these plans.</FONT></P>
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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(4) </FONT><I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Beneficial Ownership of Securities </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#150; October 31, 2009.</FONT>&nbsp;</TD>
</TR>
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	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Dollar Range of Equity Securities</FONT></B>&nbsp;</TD>
</TR>
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&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Beneficially Owned</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kevin Rendino</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kurt Schansinger</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Carrie King</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
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	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kyle G. McClements</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 9 &#150; Purchases of Equity Securities by Closed-End Management Investment Company and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Affiliated Purchasers &#150; Not Applicable due to no such purchases during the period covered</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">by this report.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 10 &#150; Submission of Matters to a Vote of Security Holders &#150; The registrant&#146;s Nominating and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Governance Committee will consider nominees to the board of directors recommended by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders when a vacancy becomes available. Shareholders who wish to recommend a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">nominee should send nominations that include biographical information and set forth the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">qualifications of the proposed nominee to the registrant&#146;s Secretary. There have been no</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">material changes to these procedures.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 11 &#150; Controls and Procedures</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">11(a) &#150; The registrant&#146;s principal executive and principal financial officers or persons performing</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">similar functions have concluded that the registrant&#146;s disclosure controls and procedures (as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;1940 Act&#148;)) are effective as of a date within 90 days of the filing of this report based on the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">11(b) &#150; There were no changes in the registrant&#146;s internal control over financial reporting (as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the period covered by this report that have materially affected, or are reasonably likely to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">materially affect, the registrant&#146;s internal control over financial reporting.</FONT></P>

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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 12 &#150; Exhibits attached hereto</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(1) &#150; Code of Ethics &#150; See Item 2</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(2) &#150; Certifications &#150; Attached hereto</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(3) &#150; Not Applicable</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(b) &#150; Certifications &#150; Attached hereto</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(c) &#150; Notices to the registrant&#146;s common shareholders in accordance with Investment Company Act</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Section 19(a) and Rule 19a-1</FONT><SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT></SUP></P>
<P align="left">
<SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1 </FONT></SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Trust has received exemptive relief from the Securities and Exchange Commission permitting
it</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">to make periodic distributions of long-term capital gains with respect to its outstanding common</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">stock as frequently as twelve times each year, and as frequently as distributions are specified by or in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accordance with the terms of its outstanding preferred stock. This relief is conditioned, in part, on an</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">undertaking by the Trust to make the disclosures to the holders of the Trust&#146;s common shares, in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">addition to the information required by Section 19(a) of the Investment Company Act and Rule 19a-1</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">thereunder. The Trust is likewise obligated to file with the Commission the information contained in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">any such notice to shareholders and, in that regard, has attached hereto copies of each such notice</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">made during the period.</FONT></P>

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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the undersigned, thereunto duly authorized.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital and Income Fund, Inc.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital and Income Fund, Inc.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: December 21, 2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940, this report has been signed below by the following persons on behalf</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the registrant and in the capacities and on the dates indicated.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital and Income Fund, Inc.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: December 21, 2009</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital and Income Fund, Inc.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: December 21, 2009</FONT></P>

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end
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.19B
<SEQUENCE>6
<FILENAME>ciijune2009section19.htm
<DESCRIPTION>SECTION 19 NOTICE
<TEXT>

<HTML>
<HEAD>
   <TITLE>ciijune2009section19.htm - Produced by Pellegrini and Associates, Inc.  |  134 Spring Street New York NY 10012  |  (212) 925-5151</TITLE>
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<BODY bgcolor="#ffffff">
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<A name="page_1"></A>
<P align="left"> <FONT face="Trebuchet MS,Arial,Helvetica,sans-serif">BlackRock Enhanced Capital </FONT><FONT face="Trebuchet MS,Arial,Helvetica,sans-serif">and </FONT><FONT face="Trebuchet MS,Arial,Helvetica,sans-serif">Income </FONT><FONT face="Trebuchet MS,Arial,Helvetica,sans-serif">Fund, Inc.</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Cusip: 09256A109</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Ticker: CII</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=58%></TD>
     <TD width=41%></TD></TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Record Date</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">June 15, 2009</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Pay Date</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">June 30, 2009</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Distribution Amount per share</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.485</FONT>&nbsp;</TD> </TR> </TABLE><BR>
<P align="left"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">following </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">table sets forth the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">estimated amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">current distribution </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">cumulative distributions </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">paid this fiscal</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">year to date from the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">following sources: </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">net </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">investment income, </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">net </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">realized </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">short-term </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">gains, net </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">realized </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">long-term</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">gains and return of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital. </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">All </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">are </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">expressed </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">per </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">common </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">share.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=17%></TD>
     <TD width=14%></TD>
     <TD width=19%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">% Breakdown of the</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">% Breakdown</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Total Cumulative</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Total Cumulative</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of the Current</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Distributions for the</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Distributions for the</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> &nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Current Distribution</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Distribution</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Fiscal Year to Date</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Fiscal Year to Date</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Net Investment Income</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.036</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">7%</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.264</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">18%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Net Realized Short-Term Capital Gains</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; -</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; -</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Net Realized Long-Term Capital Gains</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; -</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; -</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Return of Capital</FONT>&nbsp;</TD>
     <TD align=left style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.449</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">93%</FONT>&nbsp;</TD>
     <TD align=left style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 1.191</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">82%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Total (per common share)</FONT>&nbsp;</TD>
     <TD align=left style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.485</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
     <TD align=left style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 1.455</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD> </TR> </TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=85%></TD>
     <TD width=14%></TD></TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Average annual total return (in relation to NAV) for the inception to date ending on May 31, 2009</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">2.80%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Current fiscal period's annualized distribution rate as a percentage of NAV as of May 31, 2009</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">14.07%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Cumulative total return (in relation to NAV) for the fiscal year through May 31, 2009</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">8.83%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Cumulative fiscal year distribution rate expressed as a percentage of NAV as of May 31, 2009</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">7.03%</FONT>&nbsp;</TD> </TR> </TABLE><BR>
<P align="left"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">You should not draw any </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">conclusions </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">about the Fund&#146;s </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">investment performance </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">from the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amount </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of this </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">distribution </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">or from the terms of the</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Funds </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Managed Distribution </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Plan.</FONT><BR>
<BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The Fund </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">estimates </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">that it has </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">distributed </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">more than its </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">income </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and net </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">realized </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">gains; </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">therefore, </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">a </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">portion </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of your </FONT><FONT size=1 face="Trebuchet MS,Ari
al,Helvetica,sans-serif">distribution </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">may be a</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">return of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital. </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">A return of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">may occur, for </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">example, </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">when some or all of the money that you </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">invested </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">in the Fund is paid back to you. A return</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">does not </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">necessarily reflect </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">the Fund&#146;s </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">investment performance </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and should not be </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">confused </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">with &#145;yield&#146; or </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#145;income&#146; </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">.</FONT><BR>
<BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">sources </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">distributions reported </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">in the Notice are only </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">estimates </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and are not being </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">provided </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">for tax </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">reporting purposes.</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The actual </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">sources </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">for tax </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">reporting purposes </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">will </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">depend </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">upon the Fund&#146;s </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">investment experience </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">during the </FONT><FONT size=1 
face="Trebuchet MS,Arial,Helvetica,sans-serif">remainder</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of its fiscal year and may be </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">subject </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">to </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">changes </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">based on the tax </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">regulations. </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The Fund will send you a Form 1099-DIV for the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">calendar </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">year that will</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">tell you how to report these </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">distributions </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">for </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">federal income </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">tax </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">purpose.</FONT><BR>
<BR>
<B><FONT size=1 face="TrebuchetMS-Bold,Arial,Helvetica,sans-serif">Contact Number: </FONT></B><B><FONT size=1 face="TrebuchetMS-Bold,Arial,Helvetica,sans-serif">888-825-2257</FONT></B></P>
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<TYPE>EX-99.19B
<SEQUENCE>7
<FILENAME>ciisept2009section19.htm
<DESCRIPTION>SECTION 19 NOTICE
<TEXT>

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   <TITLE>ciisept2009section19.htm - Produced by Pellegrini and Associates, Inc.  |  134 Spring Street New York NY 10012  |  (212) 925-5151</TITLE>
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<P align="left"> <FONT face="Trebuchet MS,Arial,Helvetica,sans-serif">BlackRock Enhanced Capital </FONT><FONT face="Trebuchet MS,Arial,Helvetica,sans-serif">and </FONT><FONT face="Trebuchet MS,Arial,Helvetica,sans-serif">Income </FONT><FONT face="Trebuchet MS,Arial,Helvetica,sans-serif">Fund, Inc.</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Cusip: 09256A109</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Ticker: CII</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=58%></TD>
     <TD width=41%></TD></TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Record Date</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">September 15, 2009</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Pay Date</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">September 30, 2009</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Distribution Amount per share</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.485</FONT>&nbsp;</TD> </TR> </TABLE><BR>
<P align="left"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">following </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">table sets forth the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">estimated amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">current distribution </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">cumulative distributions </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">paid this fiscal</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">year to date from the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">following sources: </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">net </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">investment income, </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">net </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">realized </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">short-term </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">gains, net </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">realized </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">long-term</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">gains and return of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital. </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">All </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">are </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">expressed </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">per </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">common </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">share.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=17%></TD>
     <TD width=14%></TD>
     <TD width=19%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">% Breakdown of the</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">% Breakdown</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Total Cumulative</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Total Cumulative</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> &nbsp;</TD>
     <TD align=left> &nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of the Current</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Distributions for the</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Distributions for the</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> &nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Current Distribution</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Distribution</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Fiscal Year to Date</FONT>&nbsp;</TD>
     <TD align=center> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Fiscal Year to Date</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Net Investment Income</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.030</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">6%</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.329</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">17%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Net Realized Short-Term Capital Gains</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; -</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; -</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Net Realized Long-Term Capital Gains</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; -</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; -</FONT>&nbsp;</TD>
     <TD align=right> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Return of Capital</FONT>&nbsp;</TD>
     <TD align=left style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.455</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">94%</FONT>&nbsp;</TD>
     <TD align=left style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 1.611</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">83%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Total (per common share)</FONT>&nbsp;</TD>
     <TD align=left style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 0.485</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
     <TD align=left style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#36; 1.940</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD> </TR> </TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=84%></TD>
     <TD width=15%></TD></TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Average annual total return (in relation to NAV) for the 5-year period ending on August 31, 2009</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">4.22%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Current fiscal period's annualized distribution rate as a percentage of NAV as of August 31, 2009</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">13.18%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Cumulative total return (in relation to NAV) for the fiscal year through August 31, 2009</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">20.71%</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Cumulative fiscal year distribution rate expressed as a percentage of NAV as of August 31, 2009</FONT>&nbsp;</TD>
     <TD align=right style="border-bottom:1px solid #000000;"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">9.88%</FONT>&nbsp;</TD> </TR> </TABLE><BR>
<P align="left"> <FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">You should not draw any </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">conclusions </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">about the Fund&#146;s </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">investment performance </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">from the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amount </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of this </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">distribution </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">or from the terms of the</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Funds </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Managed Distribution </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">Plan.</FONT><BR>
<BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The Fund </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">estimates </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">that it has </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">distributed </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">more than its </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">income </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and net </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">realized </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">gains; </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">therefore, </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">a </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">portion </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of your </FONT><FONT size=1 face="Trebuchet MS,Ari
al,Helvetica,sans-serif">distribution </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">may be a</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">return of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital. </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">A return of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">may occur, for </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">example, </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">when some or all of the money that you </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">invested </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">in the Fund is paid back to you. A return</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">capital </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">does not </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">necessarily reflect </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">the Fund&#146;s </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">investment performance </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and should not be </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">confused </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">with &#145;yield&#146; or </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">&#145;income&#146; </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">.</FONT><BR>
<BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">sources </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">distributions reported </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">in the Notice are only </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">estimates </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and are not being </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">provided </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">for tax </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">reporting purposes.</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The actual </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">and </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">sources </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">amounts </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">for tax </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">reporting purposes </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">will </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">depend </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">upon the Fund&#146;s </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">investment experience </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">during the </FONT><FONT size=1 
face="Trebuchet MS,Arial,Helvetica,sans-serif">remainder</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">of its fiscal year and may be </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">subject </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">to </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">changes </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">based on the tax </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">regulations. </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">The Fund will send you a Form 1099-DIV for the </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">calendar </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">year that will</FONT><BR>
<FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">tell you how to report these </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">distributions </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">for </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">federal income </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">tax </FONT><FONT size=1 face="Trebuchet MS,Arial,Helvetica,sans-serif">purpose.</FONT><BR>
<BR>
<B><FONT size=1 face="TrebuchetMS-Bold,Arial,Helvetica,sans-serif">Contact Number: </FONT></B><B><FONT size=1 face="TrebuchetMS-Bold,Arial,Helvetica,sans-serif">888-825-2257</FONT></B></P>
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<SEQUENCE>8
<FILENAME>ciiex99cert.htm
<DESCRIPTION>CERTIFICATION
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<P align="left"> <B><FONT size=2 face="Arial-BoldMT,Arial,Helvetica,sans-serif">EX-99.CERT</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">THE SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">I, Anne F. Ackerley, Chief Executive Officer (principal executive officer) of BlackRock Enhanced Capital and Income</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund, Inc., certify that:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1. I have reviewed this report on Form N-CSR of BlackRock Enhanced Capital and Income Fund, Inc.;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">material fact necessary to make the statements made, in light of the circumstances under which such statements were made,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">not misleading with respect to the period covered by this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3. Based on my knowledge, the financial statements, and other financial information included in this report fairly</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">in this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">designed under our supervision, to ensure that material information relating to the registrant, including its</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">which this report is being prepared;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) designed such internal control over financial reporting, or caused such internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial reporting and the preparation of financial statements for external purposes in accordance with generally</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accepted accounting principles;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">days prior to the filing date of this report, based on such evaluation; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">d) disclosed in this report any change in the registrant's internal control over financial reporting that</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) all significant deficiencies and material weaknesses in the design or operation of internal control over</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">summarize, and report financial information; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) any fraud, whether or not material, that involves management or other employees who have a significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">role in the registrant's internal control over financial reporting.</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: December 21, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital and Income Fund, Inc.</FONT></P>
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<P align="left"> <B><FONT size=2 face="Arial-BoldMT,Arial,Helvetica,sans-serif">EX-99.CERT</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Enhanced Capital</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and Income Fund, Inc., certify that:</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1. I have reviewed this report on Form N-CSR of BlackRock Enhanced Capital and Income Fund,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Inc.;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">omit to state a material fact necessary to make the statements made, in light of the circumstances under</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">which such statements were made, not misleading with respect to the period covered by this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3. Based on my knowledge, the financial statements, and other financial information included in this</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">report fairly present in all material respects the financial condition, results of operations, changes in net</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant as of, and for, the periods presented in this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940) for the registrant and have:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) designed such disclosure controls and procedures, or caused such disclosure controls and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures to be designed under our supervision, to ensure that material information relating to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant, including its consolidated subsidiaries, is made known to us by others within those</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">entities, particularly during the period in which this report is being prepared;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) designed such internal control over financial reporting, or caused such internal control</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over financial reporting to be designed under our supervision, to provide reasonable assurance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">regarding the reliability of financial reporting and the preparation of financial statements for</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">external purposes in accordance with generally accepted accounting principles;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">c) evaluated the effectiveness of the registrant's disclosure controls and procedures and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">presented in this report our conclusions about the effectiveness of the disclosure controls and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures, as of a date within 90 days prior to the filing date of this report, based on such</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">evaluation; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">d) disclosed in this report any change in the registrant's internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting that occurred during the second fiscal quarter of the period covered by this report that</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">has materially affected, or is reasonably likely to materially affect, the registrant's internal control</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over financial reporting; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">audit committee of the registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) all significant deficiencies and material weaknesses in the design or operation of internal</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">control over financial reporting which are reasonably likely to adversely affect the registrant's</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">ability to record, process, summarize, and report financial information; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) any fraud, whether or not material, that involves management or other employees who</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">have a significant role in the registrant's internal control over financial reporting.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: December 21, 2009</FONT></P>
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<P align="left"> <U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital and Income Fund, Inc.</FONT></P>
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<TYPE>EX-99.906 CERT
<SEQUENCE>9
<FILENAME>ciisec906.htm
<DESCRIPTION>CERTIFICATION
<TEXT>

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<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exhibit 99.1350CERT</FONT></P>
<P align="center"> <B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Certification Pursuant to Rule 30a-2(b) under the 1940 Act and</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Section 906 of the Sarbanes Oxley Act</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to 18 U.S.C. &#167; 1350, the undersigned officer of BlackRock Enhanced Capital and Income Fund, Inc. (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Registrant&#148;), hereby certifies, to the best of her knowledge, that the Registrant&#146;s Report on Form N-CSR for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">period ended October 31, 2009, (the &#147;Report&#148;) fully complies with the requirements of Section 13(a) of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">material respects, the financial condition and results of operations of the Registrant.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: December 21, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital and Income Fund, Inc.</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to 18 U.S.C. &#167; 1350, the undersigned officer of BlackRock Enhanced Capital and Income Fund, Inc. (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Registrant&#148;), hereby certifies, to the best of his knowledge, that the Registrant&#146;s Report on Form N-CSR for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">period ended October 31, 2009, (the &#147;Report&#148;) fully complies with the requirements of Section 13(a) of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">material respects, the financial condition and results of operations of the Registrant.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: December 21, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Enhanced Capital and Income Fund, Inc.</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exchange Commission</FONT><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">.</FONT></B></P>
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<U><FONT size=7 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Proxy Voting Policies</FONT></U><FONT size=7 face="TimesNewRomanPSMT,Times New Roman,Times,serif"> </FONT><BR>
<BR>
<FONT size=5 face="TimesNewRomanPSMT,Times New Roman,Times,serif">For The BlackRock-Advised Funds</FONT><BR>
<BR>
<FONT size=5 face="TimesNewRomanPSMT,Times New Roman,Times,serif">May 30, 2008</FONT></TD></TR></TABLE>
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=4 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Table of Contents</FONT>&nbsp;
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&nbsp;
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&nbsp;
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<U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page</FONT></U>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Introduction</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Proxy Voting Policies</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Boards of Directors</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Auditors</FONT>&nbsp;
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Compensation and Benefits</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Capital Structure</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Corporate Charter and By-Laws</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Corporate Meetings</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Companies</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Environmental and Social Issues</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Reports to the Board</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4</FONT>&nbsp;
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<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Introduction</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Trustees/Directors (&#147;Directors&#148;) of the BlackRock-Advised Funds (the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Funds&#148;) have the responsibility for voting proxies relating to portfolio securities of the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Funds, and have determined that it is in the best interests of the Funds and their </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders to delegate that responsibility to BlackRock Advisors, LLC and its affiliated </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">U.S. registered investment advisers (&#147;BlackRock&#148;), the investment adviser to the Funds,</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">as part of BlackRock&#146;s authority to manage, acquire and dispose of account assets. The </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Directors hereby direct BlackRock to vote such proxies in accordance with this Policy,</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">and any proxy voting guidelines that the Adviser determines are appropriate and in the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">best interests of the Funds&#146; shareholders and which are consistent with the principles </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">outlined in this Policy.  The Directors have authorized BlackRock to utilize an </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">unaffiliated third-party as its agent to vote portfolio proxies in accordance with this</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Policy and to maintain records of such portfolio proxy voting.</FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">When BlackRock votes proxies for an advisory client that has delegated to </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock proxy voting authority, BlackRock acts as the client&#146;s agent. Under the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Advisers Act of 1940 (the &#147;Advisers Act&#148;), an investment adviser is a </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">fiduciary that owes each of its clients a duty of care and loyalty with respect to all </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">services the adviser undertakes on the client&#146;s behalf, including proxy voting. BlackRock</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">is therefore subject to a fiduciary duty to vote proxies in a manner BlackRock believes is </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">consistent with the client&#146;s best interests.</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"> When voting proxies for the Funds, </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s primary objective is to make voting decisions solely in the best interests of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Funds&#146; shareholders. In fulfilling its obligations to shareholders, BlackRock will seek </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">to act in a manner that it believes is most likely to enhance the economic value of the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">underlying securities held in client accounts.</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">It is imperative that BlackRock considers </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the interests of Fund shareholders, and not the interests of BlackRock, when voting </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">proxies and that real (or perceived) material conflicts that may arise between </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s interest and those of BlackRock&#146;s clients are properly addressed and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">resolved. </FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires, among </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">other things, that an investment adviser that exercises voting authority over clients&#146; proxy </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">voting adopt policies and procedures reasonably designed to ensure that the adviser votes </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">proxies in the best interests of clients, discloses to its clients information about those </FONT><BR>
<BR>
<SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT></SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">     Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins, President, Ram Trust
Services </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(February 12, 2002) (Section 206 of the Investment Advisers Act imposes a fiduciary responsibility to vote </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">proxies fairly and in the best interests of clients); SEC Release No. IA-2106 (February 3, 2003).</FONT><BR>
<BR>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2 </FONT><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Other considerations, such as social, labor, environmental or other policies, may be of interest to
</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">particular clients. While BlackRock is cognizant of the importance of such considerations, when voting </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">proxies it will generally take such matters into account only to the extent that they have a direct bearing on </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the economic value of the underlying securities. To the extent that a BlackRock client, such as the Funds, </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">desires to pursue a particular social, labor, environmental or other agenda through the proxy votes made for </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">its securities held through BlackRock as investment adviser, BlackRock encourages the client to consider </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">retaining direct proxy voting authority or to appoint independently a special proxy voting fiduciary other </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">than BlackRock.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 1 -</FONT></TD></TR></TABLE>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">policies and procedures and also discloses to clients how they may obtain information on </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">how the adviser has voted their proxies.</FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock has adopted separate but substantially similar guidelines and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures that are consistent with the principles of this Policy.  BlackRock&#146;s Equity </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Policy Oversight Committee, or a sub-committee thereof (the &#147;Committee&#148;),</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">addresses proxy voting issues on behalf of BlackRock and its clients, including the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Funds. The Committee is comprised of senior members of BlackRock&#146;s Portfolio </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Management and Administration Groups and is advised by BlackRock&#146;s Legal and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Compliance Department.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Proxy Voting Policies</FONT></B><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">A. Boards of Directors</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals concern those issues submitted to shareholders relating to the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">composition of the board of directors of companies other than investment companies. As </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a general matter, the Funds believe that a company&#146;s board of directors (rather than </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders) is most likely to have access to important, nonpublic information regarding </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a company&#146;s business and prospects, and is therefore best-positioned to set corporate </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">policy and oversee management. The Funds therefore believe that the foundation of good </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">corporate governance is the election of qualified, independent corporate directors who are </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">likely to diligently represent the interests of shareholders and oversee management of the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">corporation in a manner that will seek to maximize shareholder value over time. In </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">individual cases, consideration may be given to a director nominee&#146;s history of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">representing shareholder interests as a director of other companies, or other factors to the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">extent deemed relevant by the Committee.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">B. Auditors</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals concern those issues submitted to shareholders related to the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">selection of auditors. As a general matter, the Funds believe that corporate auditors have </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a responsibility to represent the interests of shareholders and provide an independent </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">view on the propriety of financial reporting decisions of corporate management. While </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Funds anticipate that the Committee will generally defer to a corporation&#146;s choice of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">auditor, in individual cases, consideration may be given to an auditors&#146; history of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">representing shareholder interests as auditor of other companies, to the extent deemed </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">relevant.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">C. Compensation and Benefits</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals concern those issues submitted to shareholders related to </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">management compensation and employee benefits. As a general matter, the Funds favor </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">disclosure of a company&#146;s compensation and benefit policies and oppose excessive </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation, but believe that compensation matters are normally best determined by a </FONT><BR>
<BR>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">corporation&#146;s board of directors, rather than shareholders. Proposals to &#147;micro-manage&#148; a </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">company&#146;s compensation practices or to set arbitrary restrictions on compensation or </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">benefits should therefore generally not be supported by the Committee.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">D. Capital Structure</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals relate to various requests, principally from management, for </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">approval of amendments that would alter the capital structure of a company, such as an </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">increase in authorized shares. As a general matter, the Funds expect that the Committee</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">will support requests that it believes enhance the rights of common shareholders and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">oppose requests that appear to be unreasonably dilutive. </FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">E. Corporate Charter and By-Laws</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals relate to various requests for approval of amendments to a </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">corporation&#146;s charter or by-laws, principally for the purpose of adopting or redeeming </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;poison pills&#148;. As a general matter, the Funds expect that the Committee will oppose </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">poison pill provisions unless, after consultation with the portfolio managers, it is </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">determined that supporting the poison pill is in the best interest of shareholders.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">F. Corporate Meetings</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These are routine proposals relating to various requests regarding the formalities </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of corporate meetings. As a general matter, the Funds expect that the Committee will</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">support company management except where the proposals are substantially duplicative or </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">serve no legitimate business purpose.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">G. Investment Companies</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals relate to proxy issues that are associated solely with holdings of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shares of investment companies, including, but not limited to, investment companies for </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">which BlackRock provides investment advisory, administrative and/or other services. As </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">with other types of companies, the Funds believe that an investment company&#146;s board of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">directors (rather than its shareholders) is best-positioned to set fund policy and oversee </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">management. However, the Funds oppose granting boards of directors authority over </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">certain matters, such as changes to a fund&#146;s investment objective, that the Investment </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940 envisions will be approved directly by shareholders.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">H. Environmental and Social Issues</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These are shareholder proposals to limit corporate conduct in some manner that </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">relates to the shareholder&#146;s environmental or social concerns. The Funds generally </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">believe that annual shareholder meetings are inappropriate forums for the discussion of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">larger social issues, and oppose shareholder resolutions &#147;micro-managing&#148; corporate </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">conduct or requesting release of information that would not help a shareholder evaluate </FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 3 -</FONT></TD></TR></TABLE>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">an investment in the corporation as an economic matter. While the Funds are generally </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">supportive of proposals to require corporate disclosure of matters that seem relevant and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">material to the economic interests of shareholders, the Funds generally are not supportive </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of proposals to require disclosure of corporate matters for other purposes.</FONT><BR>
<BR>
<B><U><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Reports to the Board</FONT></U></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock will report to the Directors on proxy votes it has made on behalf of the Funds </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">at least annually.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 4 -</FONT></TD></TR></TABLE>
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